Present Status and Future Needs of Tea Industry in Bangladesh: a Study on Sylhet

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It is the Almighty God who enabled us to successfully complete the study on “Present status and future needs of Tea industry in Bangladesh: A study on Sylhet.” A large number of individuals have helped directly & indirectly to prepare this report. I am grateful to them. They help us by giving their valuable suggestions.
We would like to give special thanks to our research supervisor Mr. Syed Towfiq Mahmood Hasan, Assistant Professor, Department of Business Administration, ShahJalal University of Science And Technology, Sylhet for his valuable suggestion and constant supervision to conduct and complete our research work and to find some time from his very busy schedule and give accurate direction about our study. The suggestion of our supervisor is the key contribution to prepare this paper. We would also like to give thanks to our honourable teacher Syed Md. Khaled Rahman(Dept. of Business Administration), Md. Ashraful Ferdous Chowdhury(Dept. of Business Administration) and Dr. Iftekhar Ahmad(Dept. Of Food Engineering and Tea Technology).

World tea production has been showing an annual increment of 3% while in Bangladesh the production has increased by 1.5 % and contributes 1% in export in the word tea trade and earns near about 334.397 million Taka (Taka 70 = USD 1.00) last year. The activities of tea industry fall into two categories: production of tea and manufacturing & marketing of tea. Low productivity, poor quality and higher cost of production compared to the dividend in price for tea is the core of the problem. We have to make quality tea, which must satisfy the prescribed criterion of the of the European countries especially Maximum Residue Level (MRL) value of pesticides to restore its name and fame. This paper attempts at focusing on the present condition and support required of tea industry in the country.

1.1 Introduction:

Tea is one of the most important non-alcoholic beverage drinks worldwide and has been gaining further popularity as an important ‘health drink’ in terms of its medicinal value. Tea is processed from the leaves or buds of the tea bush. It is made by steeping the processed leaves in hot water for a few minutes. The flavour of the raw tea is developed by processing, including oxidation (fermentation), heating, drying or the addition of other herbs, spices, or fruit. Tea is a natural source of caffeine and theophylline.
It is served as morning drink for nearly 2/3rd of the world population daily. A total of 3,833,750 tonnes of tea were produced worldwide in 2008, (Source: FAO website www.fao.org) India, China, Sri Lanka and Kenya, in that order, are the major producers of tea leaves.
The Bangladesh tea industry is one of the major sources of income for the national exchequer. The amount of internal consumption and international demand of tea is increasing day by day. If we cannot ensure sufficient quantity of tea in the country with the increase of consumption in the domestic sector and international demand, it can lead to import from other origins and lose international market of tea. For this reason the government and the producers have to be very careful about.

1.2 Background of The study:
Tea is an agro-based, labour intensive and export oriented sector and plays an important role in the national economy through export earnings, trade balancing and employment generation. Tea is one of the most important source of export earning for Bangladesh & it helps in the GDP growth of our economy.
The main reasons for taking this initiative to do the study are: 1. The present scenario of Bangladeshi Tea is not seems to be good in international market. 2. The production and export procedure of Bangladeshi tea are in troubling position. 3. Internal consumption & international demand of tea are increasing day by day. 4. However, the tea sector of Bangladesh is prospective. 5. The tea sector of Bangladesh has a greater economic contribution.
1.3 Objectives of the study:
The study work of this seminar paper has been undertaken with the following objectives: 1. To know the contribution of tea industry in economic development of Bangladesh. 2. To know the current position of tea sector of Bangladesh in international market 3. To find out the problem faced by the tea industry. 4. To recommend some possible steps to solve this problem.

1.4 Methodology of the study:
The word ‘Method’ derives from the Greek word ‘Meta’ and ‘Hodos’ meaning ‘a way ’. A method involves a process or technique in which various stages or steps of collecting data are explained and the analytical techniques are defined . According to Urdong, ‘A Method or Methodology is the underlying principles and rules of organization of a philosophical system or inquiry procedure’. A dictionary of Social Sciences observes, ‘methodology is the systematic and logical study of the principles guiding scientific investigation’ (Gould and Kolb, 1964). In simple ‘a method is the way of doing something’.
This research is an elaborate study to enable us to understand the present status and future needs of Bangladeshi tea industry. Collected data and information were tabulated, processed and analyzed critically in order to make the paper more informative, fruitful and purposeful.
In preparing this seminar paper we have used the following research design:
At first we use the exploratory research design to collect the basic information about the Tea sector of Bangladesh. We collect some qualitative data in terms of this topic. Then we use the following two data resource: a) Primary data resource b) Secondary data resource
The primary data had been collected by direct interview & informal discussions with the important persons of each department.

Most of the data have been collected from secondary sources. The secondary information is collected from various books, financial papers, and documents, articles related with the Tea Plantation, Tea Marketing, Bangladesh Newspapers, Bangladesh Tea Board, Project Development Unit, BTB, Web portal, Bangladesh Tea Research Institute (BTRI), Tea Traders Association of Bangladesh, International Tea Boards, EPB, Food and Agricultural Organization (FAO) etc. Annual report, Tea Market procedures, Tea exports were also consulted and helped to fulfill the objectives of the study.
Preparing the seminar on present status and future needs of Bangladesh tea industry, all these primary and secondary data were collected, corrected, organised, analysed and interpreted to draw some findings with quantitative measurement.

1.5 Structure of paper:
The seminar paper is both qualitative and quantitative. Data are presented through table and graph, so it is quantitative, because of theoretical analysis it is qualitative.
‘Population’ of the seminar paper
19 tea estates in Sylhet district are taken as ‘population’
Selection of Sampling Design
The area of this seminar is Sylhet and few tea estates at this area are surveyed. There are many tea estates in sylhet, among them five tea estates are taken as sample. These are Malnicherra tea estate, Lackatoorah tea estate, Ali-Bahar tea estate, Khan Tea estate, Habib Nagar Tea estate.
Collection of Information
The information was collected through questionnaire. Some of the data were used in this research are primary data collected from the sources and some secondary data were collected from websites.

The researcher must consider some characteristics before using secondary data, they are- ▪ Reliability of data: The collected data must be reliable, so our data tested by finding out such thing that, (a) what are the sources of data? (b) Who collect the data? ▪ Suitability of data: The data that are suitable for one enquiry not necessary be found suitable in another enquiry. Hence, if the available data are found to be unsuitable we should not use them. In the context, we must be very careful scrutinize the definition of various terms and units of collection used at that time of collecting data from the primary source originally. Similarly, the object, scope and nature of the original enquiry must also be studied. If we find differences in the these, the data will remain unsuitable for the present enquiry and should not be used. ▪ Adequacy of data: If the level of accuracy achieved in data is found inadequate for the purpose of the secondary enquiry, they will be considered inadequate and should not be used by us. The data will also be considered inadequate, if they are related to one area, which may be either narrow or wider than the area of the present enquiry.

1.6 Selection of the appropriate method for data collection:
Thus there are methods of data collection. As such the researcher must judiciously select the method/methods for study, keeping in view the following factors: 1. Nature, scope and object of the enquiry: The method selected should be such that suits the type of enquiry that is to be conducted. The factor is also important is deciding whether secondary data are to be used or primary data to be collected. 2. Availability of funds: When funds at the disposal of the researcher are very limited, he will have to select a comparatively cheaper method, which may not be efficient and effective as some other costly method. Finance, intact is a big constraint in practice and the researcher has to act within his limitation. 3. Time factor: The time at the disposal of the researcher affects the selection of the method by which the data are to be collected. Some methods take relatively more time, whereas with others the data can be collected in a comparatively shorter duration. 4. Precision required: Precision required is yet another important factor to be considered at the time of collection of data.
1.7 Limitations of the study:
The constraints that limit fulfillment and total accomplishing of the research objectives are: 1. Respondents were sometimes reluctant to fill the questionnaire. 2. Lack of work experience. 3. Lack of enough research papers on the topics. 4. Limited financial support. 5. Limited time

2.1 Tea:
Tea (Camellia sinensis L.) belongs to the family Theaceae. It is the oldest non alcoholic caffeine containing beverage in the world. Tea is an evergreen, perennial, cross-pollinated plant and grows naturally as tall as 15 m. The tea plant grows best in loose, deep soil, at high altitudes, and in sub-tropical climates. However, under cultivated condition, the bush height of 60–100 cm is maintained for harvesting the tender leaves for even more than 100 years. Depending on how the plant material is handled, the flavour and colour of the tea can vary widely, and many teas also include additional flavourings, which complicate the flavour even further. The flowers are white in colour and the fruits are green in colour with 2–3 seeds. Even though all teas come from only one species, there are three major varietals: – The India (or Assam) type: Larger leaves and generally thrives at lower altitudes. – The China type: Small leaves and generally thrives at higher altitudes. – The Hybrid: Kind of in-between the Chinese and Indian.

2.2 History of tea in Bangladesh:
The art of tea cultivation in Bangladesh began over a century and a half ago in the 1840s near the Chittagong Club. The first tea garden was established at Malnicherra in Sylhet in 1854. Its commercial production began shortly thereafter in 1857. During the partition in 1947, Bangladesh (the then East Pakistan) owned 103 tea estates, covering 26,734 hectares of tea plantation with annual production of 18.36 M.Kg. with an yield of about 639 Kg. per ha. Home consumption was around 13.64 M. Kg. upto 1955. After that home consumption went up rapidly and Government imposed 3% mandatory extension of tea area per year in 1961. Ten years later by 1970, tea area was extended to 42,658 hectares and production was incrased to 31.38 M.Kg.
Post-Partition 1947-1971:
After partition, the subcontinent was broadly divided into two political regions - India and Pakistan (comprising West and East Pakistan). When Pakistan became independent in 1947, there were 133 tea gardens. By 1971, this number had risen to 147, with roughly 90,000 workers out of a total country population of 249,000 people. In 1950, under the Pakistan Tea Act, the Pakistan Tea Board was established in Dhaka and in 1957; the Tea Research Institute was founded in Srimangal in 1957. The Tea Ordinance Act of 1959 replaced the earlier Pakistan Tea Act of 1950 to enhance the Board's role in promoting tea cultivation and quality control. Until 1971, teas continued to be imported to meet the growing internal demand while production was inadequate. With export restrictions and the captive market of West Pakistan, the tea industry operated in a seller's market with the 1969 crop being sold in the Chittagong auctions at Rs 3.50 per lb., against the CIF Chittagong cost of imported tea at Rs 1.50 per lb.
The 1971 War of Liberation:
During the War of Liberation in 1971, the tea industry suffered many setbacks. In addition to the fact that many factories were damaged, two-thirds of the experienced planters of British and Pakistan origin left the industry, whilst many senior Bangladeshi planters joined the war. This meant that inexperienced men who had to combat disturbed conditions, were running the Estates. Some of the battles even took place in the tea garden areas, which were very near the borders. In 1947, gardens in East Pakistan had 75,000 acres (30,364 hectares) under tea. Between 1947 and 1960, the acreage devoted to tea increased by 8,000 acres. In the following decade, thanks to the compulsory 3% extension plan undertaken by the government. In 1947, Pakistan began with a production of 41.5 million lbs. (19.0 million kg) – approximately 7% of India's production. In 1956, this figure reached 53 million lbs. (24.1 million kg), and in 1971, a record crop of 69.18 million lbs. was harvested.
After 1971:
After the war, assistance from England was readily available. At the request of the Government of Bangladesh, the British agency Overseas Development Administration (ODA) commissioned the Commonwealth Development Corporation (CDC) in 1973 to assess the requirements for a process of rehabilitation and reorganization of the tea industry, including tea growing, manufacture, research, markets and market organization, with an assessment of the financial and economic returns to such a program. In addition, in 1976 the government-sponsored Dastagir Committee, which looked into the financial constraints of a number of estates, also submitted its recommendations that proved to be very effective. In 1977, the Bangladesh Tea Board was reconstituted with objectives common to those of the erstwhile Pakistan Tea Board formed under the Pakistan Tea Act 1950, and as the regulatory body for the tea industry of Bangladesh, the role of the Tea Board expanded to include the monitoring of the crop and its disposal, the issuance of export licenses to export buyers, and the authority to give permission to producers for consignment and direct sales, etc.
Table: Tea History of Bangladesh
|Year |Location |District |Remarks |
|1840 |Chittagong Club |Chittagong |Tea cultivation starts |
|1854 |Malnichera |Sylhet |First Tea Garden in Bangladesh |
|1857 |Malnichera |Sylhet |Commercial Production starts |
|1947 |Surma Valley |Sylhet |Products were called Indian Tea |
|1947-1971 | | |Post Partition duration |
|1950 | |Dhaka |Pakistan Tea Board was established |
|1957 | |Sylhet |Tea Research Institute was established as Srimangal |
|1959 | |Dhaka |Tea Ordinance Act 1959 introduced |
|1960 | |Chittagong |Tea Traders Association of Pakistan registered |
|1971 | |Throughout Bangladesh |Imported tea to meet local demand. |
| | | |Liberation starts |
|1973 | | |British Agency Overseas Development Administration (ODA) |
| | | |commissioned the Commonwealth Development Corporation |
| | | |(CDC) |
|1974 | |Chittagong |Tea Traders Association of Pakistan replaced Tea Traders |
| | | |Association of Bangladesh |
|1976 | | |Government-sponsored Dastagir Committee formed |
|1977 | | |Bangladesh Tea Board constituted |
|1975-76 | | |Attempt to increase yields by Tea Board |
|1979 | | |British consultants developed a strategy to rehabilitate |
| | | |the damaged tea gardens and industry during liberation |
| | | |war |
|1983-84 | | |Replanting starts |

In 1974, the Tea Traders Association of Bangladesh replaced the Tea Traders Association of Pakistan. Eight years later, the metric weight system was adopted for the sale of tea, replacing the earlier imperial system. The area that produced tea increased from around 43,000 hectares in 1971 to the present area of about 48,000 hectares. After 1971, an improvement in yield per hectare was also evident. The industry got a big push on behalf of the government through a massive development program (BTRP-1980-92) with the financial and technical assistance of the British ODA and EEC and production increased to 59.17 million kg. in 2010.
It is known that, the British was the introducer of tea garden in Bangladesh but a person named Mohammad Warish was the first who discovered the tea plants in the soil of Sylhet at 1854. He was from Jakiganj, Sylhet & he was a cooker of East-India Company. For that he was rewarded 50tk by the British Government. (Source: The Daily Kaler Kantho)

2.3 Cultivation process of tea:

Tea is an evergreen plant that grows mainly in tropical and sub-tropical climates and also need hilly tracks. The cultivation process of tea are as follows:

Weather and soil:

Tea is a crop that grows predominantly in higher altitudes, which will be providing chill climate constantly throughout the year. The presence of region that will be providing almost the same temperature all over the year will be best suitable. It is also possible to grow these plants in greenhouse environment. This crop will show predominant growth in soil that is well drained and it also required that the soil is little higher in acidic side. The plant will be growing up to 1 to 2 meters upon pruning and this will be maintained as a short bush for the ease of plucking leaves. The crop produces light fragrance white budding that will be spreading delightful and sweet scent throughout the place. When left free, this plant is capable of attaining maximum height of 17 meter.
Pruning:
Pruning can be achieved in two methods in tea plants, pruning in immature plant and matured plant. Pruning is an essential process that stops the vertical growth of plant and makes it possible to achieve extended growth in horizontal manner. This will make it easier to harvest tea leaves and buds in an easy manner. There will also be superior branched patterns that will be attained by plant that makes it possible to produce more amounts of leaves and buds. It is essential to identify all dead leafs, dead buds and remove them in an effective manner. It is also essential to remove unproductive wood from the plant. The whole process requires good level of work to cover all regions of plant and shape it in an efficient manner to stimulate the hormone that is responsible for vegetative growth of plant.
Tea harvesting:
Harvesting tea requires substantial amount of work that determines the quality of tea that is being produced. For generating higher quality tea, it is essential to pluck only second, third leafs along with the buds. It will also be better to prune mature leaves before heading for harvesting procedure. The above method of plucking is called as fine plucking and there are great chances that tea that is being produced in this manner will taste great. If the leaves are plucked along with first leaf and with more number of leafs than bud, this is called as coarse plucking and quality of tea that is being produced through this plucking technique will be lesser. Thus you should choose appropriate harvesting procedure based on the factors- quantity and quality. For quality tea production, fine plucking will be suitable manner and those people who require more quantity, coarse plucking will be an appropriate method. Based on the processing method, it will be possible to produce green tea, white tea, black tea or oolong tea.
Plant protection:
For plants that are being grown through pots, it is essential to maintain them in dry manner and should be watered very sparingly. The potted plant should be brought inside home and placed in a dry place with good shade. The plant will experience very less problems due to pest attacks. When you find this plant being attacked by pests, usage of very low concentration pesticides will provide effective solution.

2.4 Manufacturing process of tea:
After Plucking, green leaves are transported to the factory for manufacture. The process of manufacturing comprises of the following stages: • Withering i. e. moisture removal of about 10-15% (i.e. 65-70% wither) from leaf and bringing some chemical changes for optimum quality development. • Fermentation i. e. oxidation process when tea etching i.e. polyphonals is degraded to desirable biochemical constituents named Theo Flavin (TF) and Thea Rubigin (TR). • Drying i. e. moisture removal from oxidized leaf to 2-3% at dyer mouth level. • Sorting i. e. grading of made Tea according to particles sizes and are given a grade name. These names are categorized, like: FP, FBOP, BOP, and GBOP, OF, FOF, PF, PD, RD, and CD (10 primary grades of CTC).
Bangladesh Tea is shipped in chests, gunny bags or paper sacks of International standard bearing an original garden mark, bulked or blended. Care is taken to ensure that each consignment, however small, reaches its destination as fresh as it was when it left the garden.

2.5 Types of tea:
With the introduction of clonal Teas (BT Series) a touch of pleasant flavor is acclaimed worldwide. Tea is traditionally classified based on the techniques with which it is produced and processed. • White tea: Wilted and un oxidized • Yellow tea: Un wilted and un oxidized, but allowed to yellow • Green tea: Un wilted and un oxidized • Oolong: Wilted, bruised, and partially oxidized • Black tea: Wilted, sometimes crushed, and fully oxidized • Post-fermented tea: Green tea that has been allowed to ferment/compost

Bangladesh is manufacturing three types of teas as under a) Black Tea (CTC) 94% b) Green Tea 4% c) Organic Tea 2%
The processed Teas after grading as per size and make are packed in airtight as plywood chest sack on binned any bags and send to Ware-Houses in Chittagong for sale through auction.

2.6 Grades of tea:
Category Grades

BROKEN FP (Flowery Pekoe) FBOP (Flowery Broken Orange Pekoe) BOP (Broken Orange Pekoe) GBOP (Golden Broken Orange Pekoe)
FANNING OF (Orange Fanning) FOF (Flowery Orange Fanning) PF (Pekoe Fanning)
DUST PD (Pekoe Dust) RD (Red Dust) CD (Churamani Dust)

3.1 Global Scenario of tea:
The black tea segment accounted for 65% of total tea production, 67% of consumption and 80% of trade during the past 05 years. After long periods of sustained growth, black tea production declined by 0.64% from 2007 to 2009 while consumption grew by 0.57% at the global level in the same period. In 2007, world tea prices began a slow but sustained increase, underpinned by strong demand globally, particularly in emerging economies. The incline in tea prices accelerated in 2008 & 2009. Accordingly, the Food & Agricultural Organization (FAO) Tea Composite Price rose from an average of USD 1.95/kg in 2007 to USD 2.39/kg in 2008 and reaching a record USD 3.18%/kg in Sept. 2009, the highest level since FAO Tea Composite Price was created in 1989. Prices retreated marginally by early 2010 but continue to re- main high by historical standards.

3.2 Global production of tea:
World Black tea production declined by 2% in 2009 while Green tea production in- creased by 3%. All major black tea manufacturing nations such as Kenya (9%), Sri Lanka (9%), Vietnam (8%), Indonesia (2%) and India (1%) reflected a drop. Growth of Green tea output by China reaching 1.31 billion kilos epitomized the expansion that has taken place over the last decade which firmly placed China as the largest tea producer in the world. (Figs. In M.Kgs)
|Country |2010 |2009 |2008 |2007 |2006 |
|China |1370.00 |1358.64 |1257.60 |1140.00 |1028.06 |
|India |966.40 |979.00 |980.82 |986.43 |981.81 |
|Kenya |399.01 |314.20 |345.82 |369.61 |310.58 |
|Srilanka |329.38 |289.78 |318.70 |304.61 |310.82 |
|Vietnam |157.00 |154.00 |166.38 |148.27 |142.50 |
|Turkey |148.00 |153.00 |155.00 |178.00 |142.00 |
|Indonesia |129.20 |136.48 |137.50 |137.25 |146.85 |
|Bangladesh |59.17 |60.00 |58.66 |58.42 |53.41 |
|Malwai |51.59 |52.56 |41.64 |48.14 |45.01 |
|Uganda |56.65 |50.98 |42.75 |44.91 |36.73 |
|Tanzania |31.65 |32.09 |31.61 |34.86 |31.35 |
|Others |368.55 |351.25 |328.31 |345.58 |350.67 |
|Total |4066.60 |3931.98 |3864.79 |3796.08 |3579.79 |

Table1.1-secondary source

Global production of tea on the basis of above table:
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3.3 Global export of tea:
World tea exports in 2009 declined by 5% as Black tea supplies remained tight globally. Nevertheless, export earnings increased by 7% to USD 4.13 billion. A detail analysis reveals that, global Black tea exports had actually dipped by 6% to 1.53 billion kilos while Green tea exports had in fact increased by 1% to 279 million kilos. World tea import dropped by 5% to 1.62 billion kilos in 2009. Imports by Pakistan declined to 86,390 MT (16%), Germany by 12% to 44,830 MT, Japan by 7% to 40,225 MT, UK & USA by 6% each to 145,570 MT and 109,415 MT respectively while imports by Russia reveals a reduction of 5% to 173,675 MT.

(Fig. in million.kg)
|Country |2010 |2009 |2008 |2007 |2006 |
|Kenya |441.02 |342.48 |383.44 |343.70 |312.16 |
|China |302.42 |302.95 |296.94 |289.43 |286.59 |
|Sri lanka |298.59 |279.84 |298.82 |294.25 |314.92 |
|India |193.29 |197.90 |203.12 |178.75 |218.73 |
|Vietnam |98.00 |95.00 |104.00 |110.93 |105.12 |
|Indonesia |87.10 |92.30 |96.21 |83.66 |95.34 |
|Argentina |101.00 |69.19 |77.23 |74.88 |70.72 |
|Malawi |48.58 |46.55 |40.07 |46.59 |41.96 |
|Uganda |50.83 |47.92 |42.39 |43.64 |32.70 |
|Tanzania |25.39 |21.51 |24.77 |29.13 |24.13 |
|Zimbabwe |8.50 |7.54 |5.65 |7.60 |11.38 |
|Bangladesh |0.91 |3.15 |8.39 |10.56 |4.79 |
|Others |77.64 |76.62 |75.08 |69.14 |63.09 |
| Total | 1733.27 | 1582.95 | 1656.11 | 1582.26 | 1581.63 |

Table1.2-secondary source

Global export of tea on the basis of above table:
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3.4 Global consumption of tea:
World tea consumption grew 1% in 2009 reaching 3.81 billion kilos after a surge of 4% in 2008 to 3.78 billion kilos in 2008 from 3.65 billion kilos in 2007. Rapid consumption growth shown in China, India and some other emerging economies attributed to this expansion. Total tea consumption in China & India reached a historical high 1.02 billion kilos and 819 million kilos respectively by end of 2009.
(Fig. in m.kg)
| Year | World Supply | World Demand | (+) or (- ) |
| 2005 | 3457.89 | 3349.12 | 108.77 |
| 2006 | 3579.65 | 3473.55 | 106.10 |
| 2007 | 3796.08 | 3698.63 | 97.45 |
| 2008 | 3864.79 | 3752.69 | 112.10 |
| 2009(P) | 3931.98 | 3818.48 | 113.50 |
| 2010(P) | 4066.60 | 3874.55 | 192.05 |

(P) Provisional Table1.3-secondary source

World demand & supply of tea(2005-2010) on the basis of above table:
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The FAO Tea Composite Price increased gradually year on year since 2005 from USD 1.64to USD 1.83 per kilo in 2006 to USD 1.95 per kilo in 2007 to USD 2.39/kg in 2008 and reaching a historical record of USD 3.18/kg by September 2009. This index settled at USD 2.69 per kilo by end of 2009 while rising again to USD 2.87/kg by March 2010.
FAO/IGG on Tea has identified the following reasons for the strong global tea prices during the past several years. · Firstly civil unrest in Kenya & labour disputes in Sri Lanka. · Subsequently prolonged drought conditions in Kenya, India & Sri Lanka. · Strong economic growth in emerging economies accelerated the demand for tea.
In the medium term up to 2019, FAO projects global Black tea production to grow at 2% annually compared to a 1% annual growth during the past decade, due to stronger world tea prices. The growth in production is expected prominently from Asiaand Latin America with China, India and Argentina taking the lead. Vietnam will come to the forefront lagging close behind the major tea producers. In African, Kenyan dominance will continue unabated. World Green tea production is expected to grow at a considerably faster rate than Black tea over the next 10 years. The production growth of Green tea in China from 2000 to 2009 averages around 8% per annum. In the next 10 years, expansion of Green tea manufacture in China is projected to be a slower 5% per annum with bushes nearing optimum levels. By end of the current decade, crop in China is expected to reach 1.6 billion kilos. World Black tea exports are projected to reach 1.49 billion kilos by 2019. The exports from Asia are projected to reach 735,000 MT. Kenya is expected to retain the leadership as the largest Black tea exporting nation with 380,000 MT followed by Sri Lanka with 320,000 MT. India, Indonesia and Vietnam will remain as the other major back-up suppliers. World Green tea exports are expected to grow around 5.5% annually to reach 476,000 MT by 2019. China is tipped to dominate with an export volume of 413,000 MT followed by Vietnam at 34,000 MT and Indonesia approx. 12,000 MT by 2019. In respect of consumption, Black tea is forecasted to grow annually by 2% to reach 3 billion kilos in 2019. Consumption in India is expected to surpass one billion kilos by 2019. As per FAO projections for 2019, Black tea consumption in UK will reach 140,000 MT, Russia 170,000 MT, USA 122,000 MT, Japan 20,400 MT and Canada 14,000 MT. Pakistan, Egypt and Iran are also anticipated to show large consumption growth patterns to surpass 120,000 MT, 115,000 MT and 100,000 MT respectively by end of this decade.
The review of World Tea Market clearly show an improvement in the fundamental over supply situation which persisted in recent years underpinning current firm prices. The price transmission at retail level to consumers averaged at around 5% in developed nations against a 12% price increase in developing countries during 2009 when the FAO Tea Composite Price grew by 13%. Export earnings from tea in Sri Lanka covered 60% of the country’s food import bill while in Kenya, tea export earnings covered the country’s entire food import bill. In the medium term, projections suggest global supply and demand for Black tea will be in equilibrium which would promote relatively stable prices at higher than usual averages until end of the decade (2019). Accordingly, expanding tea growing areas as an over-reaction to high prices may be avoided while diversification and product segmentation to expand demand should be encouraged among tea producing countries.

4.1 Basic facts of Bangladesh tea industry:

a) No. of Tea Estates 163

b) No. of Tea Factories 114

c) Total Allotted Area 115,820.33 ha.

d) Total Area under Tea 54106.24 ha.

e) Total Agriculture Area 42,789.23 ha.

f) Total Non-agricultural Area 17887.03 ha.

g) Total Production (2010) 59.17 m. Kg.

h) Per Hectare Yield (2008) 1,238 m. kg.

i) Total Export (2009-2010) 0.91 m. Kg.

j) Internal Consumption (2009-10) 58.26 m. Kg.

(Source: teaboard.gov.bd ITC Annual Bulletin Supplement 2010)

4.2 Characteristics of Bangladeshi tea:

Our Tea grown on the lush green slopes of different Valleys are famous for following:

Appearance Clear

Color Bright

Liquor Pungent, i. e. strong but not better

Flavor Same as Assam Tea

Quality Has character of brightness with briskness

4.3 Tea market procedure:
Bangladesh Tea Auction Center in Chittagong has good warehousing and port facilities besides excellent road, rail and air links. While our tea gaining popularity, Bangladesh Tea researchers continue their relentless efforts to innovate and improve the quality of Bangladesh Tea to meet the demands of the 21st century. While manufacturing Tea, bright liquor with sufficient strength and aroma, pungency and ISO 3720 are ensured.
Tea holds a special place in the agricultural sector of Bangladesh economy. It is a major cash crop well as an important export item, It accounts for about 0.81% of the GDP and provides employment in the country.
As mentioned earlier domestic consumption of tea in our country has been increasing at a much faster rate than the rate of increase of our tea production which leads to gradual shrinking of our exportable surplus. To meet this increasing internal demand and to export some tea to earn foreign exchange maintaining at least a 60:40 ratio, we will have to take effective measures to increase tea production.
Rate of increasing of Production of tea in Bangladesh is very low due to various reasons arising out of technical, financial and management problems. Effective research needs to be conducted with a view to raising productivity of our tea and improving its quality. A strategic research plan has to be formulated with comprehensive programs for all round development of the tea industry.
Marketing system of Bangladesh tea is defined as the process of sale of manufacture tea in bulk or packed from tea estates to the buyers at Chittagong Auction or at estates levels from where teas are sold either directly to overseas buyers or internal traders. Tea Auction is held every Tuesday at Chittagong, a major port city with sufficient warehouses and port facilities and well connected by road, railways and air link.
The marketing of tea in Bangladesh can be divided into two segments. They are: a) Internal Marketing b) External Marketing
a) Internal market:
Internal market deals in wholesale and retail business of tea for internal consumption in the country. In this case wholesale, retail and blending licenses are to be obtained from Bangladesh Tea Board. Here teas are sold under ex-garden sale and through auction. i) Ex-Garden Sale: Sales by the producers directly from the estates to the internal buyers with prior approval from Bangladesh tea board. ii) Auction: Local traders having Biddership license from Bangladesh Tea Board, can purchase tea from Chittagong auction in internal account to sale in the internal Market.
b)External Market: External market deals in export business of tea. Here teas are sold under direct contract sale and through auction. i) Direct contract sale: Tea can be exported to foreign buyers through direct negotiation between the buyer and producer with prior approval from Bangladesh Tea Board. ii) Auction: Traders having Biddership license from Bangladesh Tea Board can purchase tea from Chittagong Auction in external account to export tea. For export this has to obtain license from Bangladesh Tea Board.

4.4 Tea production in Bangladesh:

Bangladesh is a small Tea producing country sharing 1% of the world's Tea production. We have undertaken measures to improve our quality of tea by extending the area with new varieties of hybrid clone, modernizing factories and improving infrastructure. We now annually produce 60 million Kg of Tea and we hope to increase our production to 90 million Kg in the next 15 years. Production during 1970 was 31.6 million kgs but just after liberation it slumped to 12 m.kgs. However, the recovery was quick and by 1974, production had again reached the pre-liberation level of over 31m.kgs.
Here the last ten years tea production information is given below:

|Year |Production (m.kg) |
|2000-2001 |53.41 |
| 2001-2002 |55.20 |
|2002-2003 |54.60 |
|2003-2004 |56.83 |
|2004-2005 |56.43 |
|2005-2006 |52.39 |
|2006-2007 |53.41 |
|2007-2008 |58.42 |
|2008-2009 |58.66 |
|2009-2010 |60 |

Table1.4-secondary source

[pic]

(Source: bdteaboard.gov.bd)

4.5 Consumption of tea in Bangladesh:

The consumption of tea is increasing day by day. The consumption is growing at a geometric rate. The growth of consumption of tea is 3.5% every year in our country, whereas the production is increasing at 1.5% annually. Tea is supplied in the internal market in three ways i) buying tea from the auction paying 15% VAT on the auction value known as internal account buying, ii) buying tea from the auction for export at nil VAT known as external account buying and subsequently transferring to the internal account and iii) tea supplied directly from the tea estates with prior permission of the Tea Board.
Internal Consumption of tea (Last 10 Years):

|Year |Production (m.kg) |Consumption (m.kg) |
|2000-2001 |53.41 |36.753 |
|2001-2002 |55.20 |40.441 |
|2002-2003 |54.60 |39.807 |
|2003-2004 |56.83 |38.214 |
|2004-2005 |56.43 |43.252 |
|2005-2006 |52.39 |42.551 |
|2006-2007 |53.41 |41.776 |
|2007-2008 |58.42 |50.811 |
|2008-2009 |58.66 |48.265 |
|2009-2010 |60 |55.064 |

Table1.5-secondary source

Internal Consumption of tea (Last 10 Years) on the basis of the above table:

[pic]

4.6 Export of tea:

Tea has been one of the major exportable items of Bangladesh since 1971. We had a captive export market in some countries to export tea. The scenario has been changed in recent years because of open market economy, emergence of new entrants in the world market with low priced tea and rapid increase of internal demand. Export of Bangladesh tea in the year 2005 was 9.09 million kg which was 30.66% less than the previous year export of 13.11 million kg. Export earning was 742.62 million taka against 934.04 million taka the previous year. Of the exported quantity 6.57 million kg was sold to Pakistan alone. The Govt. of Pakistan allowed duty free entry of 10.00 million kg of tea per year from Bangladesh since October 2002 and offered to increase the quota up to 15.00 million kg. but Bangladesh could not utilize that quota fully as increasing internal demand pushes the price levels up in the local auction and discourages exports. Other tea producing countries like India, Srilanka, Indonesia, Vietnam, Kenya and some other African countries have relative advantages to supply better quality teas at lower prices that makes export market extremely competitive for Bangladesh Tea.

Table: Tea Production, Export & Export Earning:

Tea production, export and export earnings from Bangladesh tea industry since 1973-74 to 2009-2010.

|Year |Production (mkg) |Export (mkg) |Export Earning (m tk) |
|1973-74 |29.89 |21.53 |105.23 |
|1974-75 |31.28 |23.50 |190.79 |
|1975-76 |31.30 |22.33 |257.45 |
|1976-77 |35.64 |29.42 |558.76 |
|1977-78 |36.35 |28.63 |769.11 |
|1978-79 |36.70 |27.10 |620.79 |
|1979-80 |39.81 |23.88 |510.00 |
|1980-81 |41.90 |29.85 |664.76 |
|1981-82 |38.54 |31.32 |760.28 |
|1982-83 |42.86 |30.81 |1096.38 |
|1983-84 |39.46 |30.74 |1690.67 |
|1984-85 |42.89 |25.85 |1560.68 |
|1985-86 |38.77 |29.82 |973.10 |
|1986-87 |40.26 |21.41 |901.32 |
|1987-88 |41.62 |27.56 |1204.81 |
|1988-89 |41.27 |25.12 |1263.45 |
|1989-90 |42.56 |22.57 |1283.00 |
|1990-91 |44.61 |26.45 |1523.61 |
|1991-92 |46.79 |23.64 |1230.76 |
|1992-93 |49.30 |33.09 |1597.59 |
|1993-94 |51.73 |27.42 |1521.00 |
|1994-95 |47.04 |26.72 |1241.45 |
|1995-96 |52.44 |21.43 |1176.03 |
|1996-97 |52.67 |25.39 |1311.18 |
|1997-98 |51.25 |24.45 |2032.29 |
|1998-99 |50.26 |23.50 |1678.29 |
|1999-2000 |50.22 |12.61 |825.73 |
|2000-2001 |53.41 |16.53 |1122.14 |
|2001-2002 |55.20 |13.80 |947.00 |
|2002-2003 |54.60 |12.17 |870.91 |
|2003-2004 |56.83 |12.18 |871.62 |
|2004-2005 |56.43 |13.11 |934.04 |
|2005-2006 |52.39 |9.022 |815.43 |
|2006-2007 |53.41 |4.828 |435.12 |
|2007-2008 |58.42 |10.798 |1017.24 |
|2008-2009 |58.66 |6.151 |822.389 |
|2009-2010 |59.17 |2.077 |334.397 |

Table1.6-secondary source

The growth of tea production of Bangladesh on the basis of above table:

[pic]

The amount of export (m.tk) on the basis of the above table:

[pic]

The amount of export earnings (m.tk) on the basis of the above table:

[pic]

4.7 Country wise export of Bangladeshi tea:

The major countries where Bangladesh exports its tea are listed below. If we see the following table than we can see that Pakistan is the big customer of Bangladesh.

|COUNTRY-WISE EXPORT OF BANGLADESH TEA(Last two Years) |
| Qty. in m kg & Value in m taka |
|Sl No. |Country |2009-2010 |2008-2009 |
| | |Qty. |Value |Qty. | Value |
| 1. |Afghanistan |0.076 |12.236 |.633 |84.6321 |
| 2. |Greece |0 |0 |.022 |2.9414 |
| 3. |K.S.A |0.128 |20.608 |.112 |14.9744 |
| 4. |Kazakhstan |0 |0 |.308 |41.1796 |
| 5. |Kuwait |0.04 |6.44 |.020 |2.674 |
| 6. |Oman |0.015 |2.415 |.006 |.8022 |
| 7. |Pakistan |1.668 |268.548 |4.804 |642.2948 |
| 8. |Poland |0 |0 |.044 |5.8828 |
| 9. |Qatar |0.02 |3.22 |.041 |5.4817 |
| 10. |Thailand |0 |0 |.003 |.4011 |
| 11. |U.A.E |0.13 |20.93 |.150 |20.055 |
| 12. |USA |0 |0 |.008 |1.0696 |
| |TOTAL | 2.077 | 334.397 |6.151 |822.389 |

Table1.7-secondary source

4.8 Contribution of tea industry in the economic development of Bangladesh:
The tea industry makes a vital contribution to the economy of the producing countries. The countries that produce tea are largely developing countries with large pools of low-cost labor. Tea industry of Bangladesh plays a important role in economic development. The playing roles are given below: • Labor intensive industry: Tea industry is a labour intensive industry. It creates employment for most of the tribal and non-educated and non-skilled people. There are so many people employed here and maintain their livelihood by working there. Almost 150000 people are working as labour in different tea estates. Almost 3.5lakhs people are depending on those labours. • Contribution in GDP growth: The tea industry of Bangladesh plays a role in GDP growth although it is very small amount. Bangladesh earn approximately 334.397 million taka in 2009-1010 fiscal year, Which contributes greatly to the GDP growth of our country. • Earn foreign currency: Bangladesh was once the fourth tea exporting countries in the world. And that time Bangladesh earns a huge amount of money through exporting. Now Bangladesh is losing its position in the international market, but still continues to earn a huge sum of money through exporting. This contributes to the economic development of our country. • Tea garden as tourist spot: Bangladesh tea industry not only produces tea but also plays an important role in tourism. Everyday many people come to visit the tea gardens. People are attracted by the natural beauty of the tea garden. Tea gardens have so many hilly tracks which attracts the visitors mostly. Actually this industry gives to the Sylhet a different identification

5: Data analysis:
5.1: Types of ownership:

We have gone to five tea estates of Sylhet to know about the ownership of those estate. From the exploratory research design we know that there are mainly four types of ownership existed. Among the five tea estates four estates are privately owned proprietary and the rest one is owned by the Bangladeshi joint stock company.
|Types of ownership |Percentage |
|Privately owned proprietary |80% |
|Bangladeshi Joint stock company |20% |
|Foreign owned sterling company |0% |
|Public limited company |0% |

Table1.8-primary source

Figure1.8-Types of ownership

From the graph we can see that maximum tea estates under our study are privately owned and the rest of the tea estates are Bangladeshi Joint Stock Company.

5.2: Total area of the tea estate:

|Area(hectare) |Frequency |Percentage |
|Below 500 |1 |20% |
|501-1000 |2 |40% |
|1001-1500 |2 |40% |
|Above 1501 |0 |0% |
|Total |5 |100% |

Table 1.9- primary source

Figure1.9- Total area of the tea estate

From the figure we can see that, among the tea estates we had surveyed, 20% tea estates are lies between 0-500 hectares. 40% tea estates are lies between 501-1000 hectares. Another 40% of tea estates are between 1001-1500 hectares.

5.3: Amount of production (Kg/hectare):

Here to measure the production of the tea estates under our study we made some classes.

|Production(Kg/hectare) |Frequency |Percentage |
|1400 |1 |20% |
|Total |5 |100% |

Table 1.10- primary source

[pic] Figure1.10- Total area of the tea estate

From the table we have seen that, among the tea estates we surveyed, 60% tea estates producing 801-110 kg/hectares. 20% tea estates are producing 1101-1400 hectares. Another 20% of tea estates produce more than 1400 kg/hectare.

5.4: Cultivation of other crops beside tea:

Beside tea, various type of crops are cultivated in the tea estate.

|Types of crops |Percentage |
|Rubber |12% |
|Bamboo |12% |
|Jack fruit |16% |
|Planted forest |16% |
|Natural forest |16% |
|Lemon |4% |
|Paddy |16% |
|Others |8% |
|Total |100% |

Table 1.11- primary source

[pic] Figure1.11- Other types of crops with tea

From the table we can see that, tea estates are cultivating other types of crops with tea. Tea estates are cultivating jackfruit, paddy, and planted forest mostly in their garden, which shares 48% . They have also 16% natural forest in their garden.

5.5: Total labor of the tea estate:

|Sex of human resources |Total number |Percentage |
|Male |2787 |49% |
|Female |2899 |51% |
|Total |5686 |100% |

Table 1.12- primary source

[pic] Figure1.12- Total human resources

From the table we can see that, female labor are more than their male counterpart, where female represents 51% and the male are 49% of the total number.

5.6: Annual income of the estate:

|Amount(crore tk.) |Percentage |
|1-5 |60% |
|5-10 |20% |
|10-15 |20% |
|15-20 |0% |
|More than 20 |0% |
|Total |100% |

Table 1.13- primary source

[pic] Figure 1.13: Annual income of the estate

From the table we can see that, 60% of the tea estates are earning less than 5 crore taka annually, where 20% are earning 5-10 crore taka per year. The rest of the estates are earning more than 10 crore taka annual

5.7: Problems regarding tea production:

|Problems |Percentage |
|Lack of capital |20% |
|Lack of govt. support |16% |
|Lack of skilled labor |16% |
|Irrigation problem in dry season |12% |
|High production cost |4% |
|Political influence |0% |
|Changing climate |16% |
|Lack of modern technology |8% |
|Others |8% |
|Total |100% |

Table 1.14- primary source

[pic]
Figure1.14- Problems regarding tea production.

From the table we can see that, tea estates are facing many problems in producing tea.20% of the estates are facing lack of capital in the tea production, 32% are suffering for lack of skilled labor and for climate change. Government support is not sufficient in the tea production, which represents almost 16%.

5.8: Statements of the tea estate owner: We have surveyed five tea estates in Sylhet region and they gave their opinions on the following statements:

|Statements |Strongly agree |Agree |Not agree/not disagree |Disagree |Strongly disagree|
|You have a better distribution program |3 |2 |0 |0 |0 |
|Your packaging system is internationally|4 |1 |0 |0 |0 |
|standard | | | | | |
|Fertility of your land is decreasing day|2 |0 |2 |1 |0 |
|by day | | | | | |
|Bangladesh is losing its international |1 |2 |1 |1 | |
|market | | | | | |
|Cannot use our resources as much as |1 |4 |0 |0 |0 |
|possible | | | | | |
|Increasing the demand of other drinks |0 |0 |1 |4 |0 |
|Table 1.15.1- primary source |
|Group |Range |Impact |
|Strongly Agree |21-25 |2 |
|Agree |16-20 |2 |
|Not Agreed/Not Disagreed |11-15 |2 |
|Disagree |6-10 |0 |
|Strongly Disagree |1-5 |0 |

Table 1.15-2- primary source

[pic] Figure 1.15- Impact on students

5.9: Problems regarding export of tea:

|Problems |Percentage |
|Lack of infrastructure |25% |
|Lack of govt. support |15% |
|Lack of variety |10% |
|Political influence |0% |
|Fail to maintain international relationship |20% |
|Hard competition |15% |
|Others |15% |
|Total |100% |

Table 1.16- primary source

[pic] Figure1.16 Problems regarding tea export

From the table we can see that, tea estates are facing problems in exporting. The main problem while exporting is lack of infrastructure, which represents 25%. Tea estates also emphasizes that they failed to maintain relationship with other country, which lays 20%. Lack of govt. support representing 15% of the problem.

6.1: Problems of tea industry regarding production and export:
Bangladesh continues to lose edge in tea exports because of increasing domestic consumption that takes up around 90 percent of annual production, a reversal of a two-decade trend. Industry insiders assume that Bangladesh will require tea imports in five to six years if the current pace of internal consumption continues.
The annual tea output remains static for the last 10 years -- between 50 and 60 million kg -- barring 2010 and 2005 when the figures were 60 million and 58 million kg respectively. Around 62 million kg of tea is also this year's projected production. • High Domestic Consumption of Tea: Domestic tea consumption has increased so much in the last five years and the country exports only five to six million kg. Currently, the consumption of tea in Bangladesh is a low of 250 grams per capita. Taking the current rate of domestic consumption into consideration, the figure in Bangladesh will stand at 500 gram after five to six years, meaning the country will need to import around 20 million kg of tea to meet internal demand. • Major Importing Countries Lose interest in Bangladeshi Tea: Even in a period between 1985 and 1990, Bangladesh used to export up to 90 percent of its total tea and the importers include Pakistan, Afghanistan, former USSR (Union of Soviet Socialist Republics), Iraq, Iran, Jordan, Sudan, Kuwait, Bahrain and the United Arab Emirates. But now-a-days Bangladesh cannot meet their requirement, so that most previous importing countries lost interest in Bangladeshi tea, exports of which are now confined to Pakistan, Kazakhstan and Uzbekistan • Low Hectare wise Production: Bangladesh is also lagging in hectare-wise production of tea, compared to major tea producing and exporting countries such as Sri Lanka, India, China and Kenya. the local tea gardens on an average produce 1200 to 1250 kg per hectare, some a maximum of 2500 kg and a few selective ones 3000 kg and more. On the other hand, per hectare production ranges from 3000 to 3500 kg or more in Sri Lanka, India and Kenya. That is why, the total production in our country are not increasing.

P.T.O. • Lack of govt. support: Government supports are not sufficient in the tea sector. It has been observed that, government has poor development initiatives in the tea sector. The government are not giving enough financial support to the tea estate, to raise their capital, to replace the century old machines. • Unutilised Land: There are 163 tea estates in Bangladesh. The total area of tea is 115,820.33 ha. Among this total allotted area for tea are 54106.24 ha. This is almost 47% of total area. So, still most of the areas are unutilised. • Lack of capital: Most of the tea estates in our country are suffering from lack of capital, which creates many problems. Because of lack of capital tea garden cannot replace their century old machinery. For lack of capital they also cannot adopt the modern technology, which hinders the growth of production. Because of lack of capital they cannot replant in their garden for increasing productivity. • Least developed garden: Out of the 163 estates, 37 are either sick or they fall in the least developed garden category. Although they account for 17 per cent of the area under tea, their share in production is just three per cent. Twenty-four per cent of the plantations have very old bushes and because of the large percentage of vacancy, their average yield is only 700 kg per hectare. This pulls down the overall productivity per hectare. • Lack of modern machinery: Most of the tea gardens are still running the century old saplings to continue their production. Uses of modern machinery can helps to increase productivity. The old machinery is not worked properly all the time. Old machinery runs at slow speed so that the production speed is also decreasing. • Low Quality & Higher price: Low quality, higher price are shrinking the Bangladesh tea market abroad. Because of rise in production of quality tea by other exporting countries and low quality and decreasing quantity of Bangladeshi tea is making the future of tea export grim. Pakistan, which has been a major outlet of Bangladesh tea, has lately been importing an increased quantity of tea from India, Vietnam, China and Indonesia at a very competitive rates in addition to their bulk of import from Kenya and other African countries. • Hard Competition: Pakistan remained the largest buyer of Bangladesh tea during last couple of years. Pakistan imports nearly 85 per cent of Bangladeshi tea after Islamabad granted duty-free access to Bangladesh tea to their market. But because of low quality and high price Bangladesh tea is likely to face a stiffer competition from those countries in the Pakistan market. Bangladesh is also losing market in other exporting countries from Bangladesh because of not fulfilling their requirements and high price comparing with other countries. • High Production Cost: High production cost of tea is also great hindrance for export of Bangladeshi tea in the international market. Because of low yield, the production cost is very much high in Bangladesh. • Changing climate: Tea plants require at least 127 cm. (50 inches) of rainfall a year. Without sufficient rainfall the tea production cannot be good. But world climate are changing. The temperature is increasing 1-1.5 degree Celsius each year. And prolonged Drought is very much common in our country. So in that case production cannot reach into our expectation. So, changing climate is also a great hindrance for increasing production.
The tea estate owners are cultivating other trees which have more financial benefits rather than cultivating more tea. The government rule is to increase the tea cultivable area every year. But they don’t following the rules and regulation. The government provides a certain amount of money for developing their tea estate, but they don’t using the money in that purpose.

6.2: Prospects of tea industry in Bangladesh:
The tea industry of Bangladesh is so much prospective and need a strong focus from all parties related with this industry.
The government is considering framing of a 20-year strategic plan for development of the tea sector and to increase its production. The project will cost Tk 867. 32 crore. Of them Tk 752 crore will be spent for implementation of strategic plan, Tk 64 crore will be spent for research and other Tk 51 crore will be spent for trade and marketing strategy. The strategic plan suggests that total land for tea production has to be increased to 69,000 hectares from existing 54,000 hectares. It also suggests that tea production per hectares is 1748 kg from 1176 kg has to be increased as early as possible. It also recommends increase of quality of tea and to export 40 per cent of total tea production. The objectives of the development-cum-rehabilitation project are: infilling in 2,200 hectares with high yielding variety of clones; replantation in 3,000 hectares; to increase area under tea by 4,500 hectares; to procure new CTC machines and other equipment; to modernise factories having very old machinery; to improve quality to international standards, keeping in view the health benefits of drinking tea; to establish modern blending and packaging facility and; to generate employment opportunities for unemployed/temporary tea estate workers as well as dependents of tribals/ethnic minorities. BTB hopes that achievement of the targeted productivity levels will enable the industry to compete in the international market.
Some gardens in Moulvibazar and Sylhet region in recent times however showed a remarkable improvement in quality and raising per-hectare production because of their adherence to pragmatic initiatives, according to the sector people.
The government has taken up a programme to cultivate tea plants in an experimental basis in various district with a view to increasing tea production in the country, reports BSS. Bangladesh Tea Research Institute has already started its sub station at Tetulia to grow tea in the area and under taken a project involving a budgetary allocation of Taka 3.3 crore for tea gardens in Panchagarh. Besides, a tea processing factory, tea development and tea expansion centre would be set up here soon.
The government has taken initiatives to bring more areas under tea cultivation to increase the production and meet the growing demand in the local and international markets. Reports based on a survey, the country has sorted out 46,000 hectares of new land in Rangamati, Bandarban and Khagrachhari districts for tea cultivation. Six small holding gardens have also started operations in North Bengal. Garo areas in Mymensingh are also been considered for tea cultivation.
Operations of tea gardens in the new areas, especially in hilly districts, are likely to start within the next four to five years, he said, adding the government has to develop infrastructure first. Another official of the Board said the government already started compensating small farmers who lost their lands for tea cultivation in the northern part of Bangladesh, particularly in Panchagarh.
The tea industry of Bangladesh is prospective because of the following reasons: • Increasing global consumption: World tea consumption continued to reach new highs. Tea is now one of the most consumed drinks all over the world and in all continents. So tea industry should raise the production to meet the demand of the world tea market. • Increasing demand of Green tea: Green tea is widely consumed in Asian countries and is becoming increasingly popular in Western countries. Epidemiologically, it has been suggested that green tea consumption prevents type 2 diabetes. Green tea is very good for health. Bangladesh are now started to produce green tea. So it is a great prospect for Bangladesh to produce more green tea and export and earn much foreign currency. • Increasing Demand of Organic tea: The demand for organic tea in the international market is also increased dramatically in last 4-5 years. Bangladesh is now producing organic tea in Panchagarh and in Tetulia. The government should also take initiatives to cultivate organic tea in other areas, because it do not need hilly tracks, areas. So it is a great prospect for Bangladeshi tea. • Herbal Tea- Ginger, Clove, Lemon Tea: There is a scope for producing tea that is mixed with and scented by citreous fruit like lemon and strong spices such as ginger and clove. Such tea is also known to have health benefits besides having specific fragrance that is like by different people. Since agents that are herbal scent tea here, these types of tea are likely to gain popularity in the countries both to the east and west of Bangladesh. This types of tea is also popular all around the world. It has a huge demand in the international market. • Tea Estate as a tourist spot: Despite its poor-country status, increasing numbers of tourists have visited Bangladesh, a new but minor source of foreign exchange earnings. Tourism in the early 1980s amounted to some 49,000 visitors per year, but by 1986 more than 129,000 tourists--mostly from India, the United States, Britain, and Japan--visited Bangladesh. Tea garden is an attractive place for the outsiders of the country as well as for our country people. If the government and the tea garden authority take steps to build the tea garden as a tourist spot, the country will be benefitted by foreign exchange earnings. • Quota free marketing in Pakistan: Pakistan government offered to enhance the duty-free quota of Bangladeshi tea up to 15,000 tons per annum. That means Bangladesh would export up to 15000 tons without any duty to Pakistan. This will benefit our economy. • Standard of Bangladeshi tea: Bangladeshi tea is known for its strong colour but it lacks flavour. Of late, there is a change in this respect. In Srimongal of Sylhet region, planters have succeeded in producing strong flavoured Darjeeling type tea. This tea has created great interest among bidders in the tea auction market. When this tea will be blended with other tea, there is the possibility of great increase in the demand for our tea.

6.3: Recommendations of our study:
From the above discussion it becomes clear that for expansion of tea production and its export promotion, the following policy recommendations may be put forward: i) A determined effort should be made to infill all tea gardens with young tea plants immediately to increase production of tea. ii) Rough plucking of green tea leaves is to be avoided for quality production of tea. iii) To meet the local demand of low priced quality tea and to increase export of tea appropriate measures coupled with government initiative should be undertaken. iv) Use of modern technology and machine is an imperative to produce quality tea and to keep the cost lower. Tea producers should be encouraged to replace ‘Orthodox’ method gradually. v) As Bangladesh can make a dent in the world market of organic tea, the industry may be given due support that it needs and deserves by the government. vi) Attempts may be made at the government level to increase export of tea to Muslim countries through bilateral contract. vii) The government should play its due role by giving adequate and timely credit, creating infrastructural facilities and preserving small-scale production by the small and marginal farmers. viii) Appropriate weight and importance on research should be given to produce HYV tea and more new types of herbal tea. ix) The Ministry of Forestry, the Ministry of Commerce and the Bangladesh Tea Board, for the successful implementation of bringing new areas under tea plantation, both in the northeastern and the southeastern part of Bangladesh may take coordinated approach. This may help poverty alleviation as the government would like to distribute land among small farmers in these areas. x) Seminars, symposium and tea festivals on Bangladesh tea may be organized abroad by the Bangladesh Tea Board individually and in collaboration with the Bangladesh Porjoton Corporation.

6.4: Conclusion of our study:
Tea industries in Bangladesh are facing numerous problems. Some of these problems concern security problems of the executives, unexpected natural calamity, deterioration of law and order situation of the tea estates, political or outsider influence on their internal arrangements, illegal occupation of land by the outsiders, lack of medical facilities, unhealthy atmosphere in the labour lines, lack of infrastructure (road, quarter, water supply network etc), lack of capital and modern machineries, lower market value of made tea in comparison to increasing production cost, lower yield per hectare in comparison to increasing domestic need, improper use of Govt. loans by some owners of the tea gardens, lack of perennial water source for irrigation during dry season and also in prolonged drought, lack of educational institutions, malnutrition among the children of the labour line. For successful tea culture the above problems must be solved. To reduce production cost we have to produce quality tea with eye catching bright orange-red colour liquor with flavour or have to increase yield. We have to make clone tea with high yielding variety having good quality. We must remove the screen of distrust and suspicion of the European countries by establishing a clean image such as achieved by the Sri Lankan Tea Research Institute. However the tea industry of Bangladesh is very prospective if we can proper utilize our resources.

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Acknowledgement

Executive Summary