History of tea in India
Encyclopedia
Some cite that the first recorded reference to tea in India was in the ancient epic of the Ramayana
, which referenced the "Sanjeevani tea" plant when Hanuman
was sent to the Himalayas to bring it for medicinal use. However, studies have shown that Sanjeevani plant was likely a plant unrelated to the tea plant (Camellia sinensis) and more likely refers to either Selaginella bryopteris or Desmotrichum fimbriatum
.
The cultivation and brewing of tea
in India
has a long history of applications in traditional systems of medicine
and for consumption. Commercial production of tea in India did not begin until the arrival of the British East India Company
, at which point large tracts of land were converted for mass tea production.
Today, India is one of the largest tea producers in the world, though over 70% of the tea is consumed within India itself. A number of renown teas, such as Darjeeling
, also grow exclusively in India. The Indian tea industry has grown to own many global tea brands, and has evolved to one of the most technologically equipped tea industries in the world. Tea production, certification, exportation, and all other facets of the tea trade in India is controlled by the Tea Board of India
.
is unknown, it is known that the tea plant was a wild plant in north east India that was indeed brewed by local inhabitants of the region. The Singpho
and Khamti
tribes living in northern Burma and Arunachal Pradesh
have stated that they have been consuming tea since the 12th century.
began large-scale production of tea in Assam, India, of a tea variety traditionally brewed by the Singpho tribe. In 1826, the British East India Company took over the region from the Ahom kings through the Yandaboo Treaty. In 1837, the first English tea garden was established at Chabua in Upper Assam; in 1840, the Assam Tea Company began the commercial production of tea in the region, run by indentured servitude of the local inhabitants. Beginning in the 1850s, the tea industry rapidly expanded, consuming vast tracts of land for tea plantations. By the turn of the century, Assam became the leading tea producing region in the world.
Writing in The Cambridge World History of Food', Weisburger & Comer write:
"The tea cultivation begun there [India] in the nineteenth century by the British, however, has accelerated to the point that today India is listed as the world's leading producer, its 715,000 tons well ahead of China's 540,000 tons, and of course, the teas of Assam
, Ceylon (from the island nation known as Sri Lanka
), and Darjeeling are world famous. However, because Indians average half a cup daily on per capita basis, fully 70 percent of India's immense crop is consumed locally."
and Typhoo
. India is also the world's largest tea-drinking nation. However, the per capita consumption of tea in India remains a modest 750 grams per person every year due to the large population base and high poverty levels.
The Indian administration along with the European Union
and six other countries (Brazil
, Chile
, Japan
, South Korea
and Mexico
) filed a complaint with the WTO against the Byrd Amendment
which was formally known as the Continued Dumping and Subsidy Offset Act of 2000 legislated by the US. The essence of this act was that non-US firms which sell below cost price in the US could be fined and the money given to the US companies who made the complaint in the first place. The act adversely affected the commodities business of the complainant states and has since been repealed after WTO ruled the act to be illegal.
Furthermore, the Indian government took cognizance of the changed tea and coffee market and set up an Inter-Ministerial Committee (IMC) to look into their problems in late 2003. The IMC has recommended that the government share the financial burden of plantation industry on account of welfare measures envisaged for plantation workers mandated under the Plantation Labour Act 1951. Moreover, IMC has recommended to introduce means so that the agricultural income tax
levied by the state governments can be slashed and the tea industry be made competitive. It has recommended that sick or bankrupt plantation estates should be provided with analogous level of relaxation for similarly placed enterprises/estates as are available to industries referred to BIFR.
A Special Tea Term Loan (STTL) for the tea sector was announced by the Indian government in 2004. It envisaged restructuring of irregular portions of the outstanding term/working capital
loans in the tea sector with repayment over five to seven years and a moratorium of one year, which was to be on a case to case basis for large growers. The STTL also provides for working capital up to Rs. 2 lakhs at a rate not exceeding 9% to small growers.
In addition to these measures, the Tea Board plans to launch a new marketing initiative, which will include foray into new markets such as Iran
, Pakistan
, Vietnam
and Egypt
. It also plans to renew its efforts in traditional markets like Russia, the UK, Iraq
and UAE. Noteworthy is its intent to double tea exports to Pakistan within a year.
Assam
Orthodox Tea is set to receive the Geographical Indications (GI) exclusivity. A GI stamp identifies a certain product as emanating from the territory of a WTO member or region or locality in that territory, where a given quality, reputation or other characteristic of the good is essentially attributable to its geographic origin.
The Cabinet Committee on Economic Affairs set up the Special Purpose Tea Fund (SPTF) under the tea Board on December 29, 2006. The aim is to fund replantation and rejuvenation (R&R) programme. In the same year, Tata Tea entered into an agreement to take over Jemca, which controls a 26 percent market share in the Czech Republic.
The CCEA gave its approval for pegging the subsidy
at 25 per cent and adoption of a funding pattern of 25 per cent promoter's contribution, 25 per cent subsidy from the government and 50 per cent loan from the SPTF. Banks have also been instructed to increase the lending period to over 13 years.
Ramayana
The Ramayana is an ancient Sanskrit epic. It is ascribed to the Hindu sage Valmiki and forms an important part of the Hindu canon , considered to be itihāsa. The Ramayana is one of the two great epics of India and Nepal, the other being the Mahabharata...
, which referenced the "Sanjeevani tea" plant when Hanuman
Hanuman
Hanuman , is a Hindu deity, who is an ardent devotee of Rama, a central character in the Indian epic Ramayana and one of the dearest devotees of lord Rama. A general among the vanaras, an ape-like race of forest-dwellers, Hanuman is an incarnation of the divine and a disciple of Lord Rama in the...
was sent to the Himalayas to bring it for medicinal use. However, studies have shown that Sanjeevani plant was likely a plant unrelated to the tea plant (Camellia sinensis) and more likely refers to either Selaginella bryopteris or Desmotrichum fimbriatum
Desmotrichum
Desmotrichum is a genus of brown alga....
.
The cultivation and brewing of tea
Tea
Tea is an aromatic beverage prepared by adding cured leaves of the Camellia sinensis plant to hot water. The term also refers to the plant itself. After water, tea is the most widely consumed beverage in the world...
in India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
has a long history of applications in traditional systems of medicine
Ayurveda
Ayurveda or ayurvedic medicine is a system of traditional medicine native to India and a form of alternative medicine. In Sanskrit, words , meaning "longevity", and , meaning "knowledge" or "science". The earliest literature on Indian medical practice appeared during the Vedic period in India,...
and for consumption. Commercial production of tea in India did not begin until the arrival of the British East India Company
British East India Company
The East India Company was an early English joint-stock company that was formed initially for pursuing trade with the East Indies, but that ended up trading mainly with the Indian subcontinent and China...
, at which point large tracts of land were converted for mass tea production.
Today, India is one of the largest tea producers in the world, though over 70% of the tea is consumed within India itself. A number of renown teas, such as Darjeeling
Darjeeling tea
Darjeeling tea is a black tea from the Darjeeling region in West Bengal, India. When properly brewed, it yields a thin-bodied, light-colored infusion with a floral aroma...
, also grow exclusively in India. The Indian tea industry has grown to own many global tea brands, and has evolved to one of the most technologically equipped tea industries in the world. Tea production, certification, exportation, and all other facets of the tea trade in India is controlled by the Tea Board of India
Tea Board of India
The Tea Board India is an Indian Government-controlled organization that regulates the Indian trade in tea.It was established by the enactment of the Tea Act in 1953 with its headquarters in Kolkata...
.
Ancient India and the Ramayana
Tea cultivation in India has somewhat ambiguous origins. Though the extent of the popularity of tea in Ancient IndiaHistory of India
The history of India begins with evidence of human activity of Homo sapiens as long as 75,000 years ago, or with earlier hominids including Homo erectus from about 500,000 years ago. The Indus Valley Civilization, which spread and flourished in the northwestern part of the Indian subcontinent from...
is unknown, it is known that the tea plant was a wild plant in north east India that was indeed brewed by local inhabitants of the region. The Singpho
Singpho
The Singpho people of Arunachal Pradesh inhabit in the district of Lohit and Changlang and the Kachin State of Burma. Some are also found in the Tinsukia district of Assam. Comprising a population of at least 7,200 in India, they live in 13 villages, namely Bordumsa, Dibang, Ketetong, Pangna, Ulup,...
and Khamti
Khamti
The Khamti, whose name is also spelled as Hkamti by the Burmese and Khampti by the Assamese, is a sub-group of the Shan people found in the Sagaing Division, Hkamti District in northwestern Burma as well as Lohit district of Arunachal Pradesh in India. Smaller numbers can be found in parts of Assam...
tribes living in northern Burma and Arunachal Pradesh
Arunachal Pradesh
Arunachal Pradesh is a state of India, located in the far northeast. It borders the states of Assam and Nagaland to the south, and shares international borders with Burma in the east, Bhutan in the west, and the People's Republic of China in the north. The majority of the territory is claimed by...
have stated that they have been consuming tea since the 12th century.
East India Company
In the early 1820s, the British East India CompanyBritish East India Company
The East India Company was an early English joint-stock company that was formed initially for pursuing trade with the East Indies, but that ended up trading mainly with the Indian subcontinent and China...
began large-scale production of tea in Assam, India, of a tea variety traditionally brewed by the Singpho tribe. In 1826, the British East India Company took over the region from the Ahom kings through the Yandaboo Treaty. In 1837, the first English tea garden was established at Chabua in Upper Assam; in 1840, the Assam Tea Company began the commercial production of tea in the region, run by indentured servitude of the local inhabitants. Beginning in the 1850s, the tea industry rapidly expanded, consuming vast tracts of land for tea plantations. By the turn of the century, Assam became the leading tea producing region in the world.
Writing in The Cambridge World History of Food', Weisburger & Comer write:
"The tea cultivation begun there [India] in the nineteenth century by the British, however, has accelerated to the point that today India is listed as the world's leading producer, its 715,000 tons well ahead of China's 540,000 tons, and of course, the teas of Assam
Assam
Assam , also, rarely, Assam Valley and formerly the Assam Province , is a northeastern state of India and is one of the most culturally and geographically distinct regions of the country...
, Ceylon (from the island nation known as Sri Lanka
Sri Lanka
Sri Lanka, officially the Democratic Socialist Republic of Sri Lanka is a country off the southern coast of the Indian subcontinent. Known until 1972 as Ceylon , Sri Lanka is an island surrounded by the Indian Ocean, the Gulf of Mannar and the Palk Strait, and lies in the vicinity of India and the...
), and Darjeeling are world famous. However, because Indians average half a cup daily on per capita basis, fully 70 percent of India's immense crop is consumed locally."
Modern tea production in India
India was the top producer of tea for nearly a century, but recently China has overtaken India as the top tea producer due to increased land availability. Indian tea companies have acquired a number of iconic foreign tea enterprises including British brands TetleyTetley
Tetley, a wholly owned subsidiary of Tata Global Beverages , is the world's second largest manufacturer and distributor of tea. Owned by India's Tata Group, Tetley's manufacturing and distribution business is spread across 40 countries and sells over 60 branded tea bags...
and Typhoo
Typhoo
Typhoo is a brand of tea in the United Kingdom. It was launched in 1903 by John Sumner Jr. of Birmingham, England.-History:In 1863, William Sumner published, A Popular Treatise on Tea as a by-product of the first trade missions to China from London....
. India is also the world's largest tea-drinking nation. However, the per capita consumption of tea in India remains a modest 750 grams per person every year due to the large population base and high poverty levels.
Government and the Indian tea industry
The Indian tea industry as the second largest employer in the country has enjoyed the attention of the Indian government. When export sales went down, the government has been sympathetic to the demand of the industry and its cultivators. It has passed resolutions supporting the industry domestically and has also lobbied extensively with organizations like the WTO internationally.The Indian administration along with the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
and six other countries (Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
, Chile
Chile
Chile ,officially the Republic of Chile , is a country in South America occupying a long, narrow coastal strip between the Andes mountains to the east and the Pacific Ocean to the west. It borders Peru to the north, Bolivia to the northeast, Argentina to the east, and the Drake Passage in the far...
, Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
, South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...
and Mexico
Mexico
The United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...
) filed a complaint with the WTO against the Byrd Amendment
Byrd Amendment
The Byrd Amendment is also known as the Continued Dumping and Subsidy Offset Act of 2000 . The act is American legislation closely associated with its chief sponsor, Democratic Senator Robert Byrd of West Virginia. The act changed the disposition of funds raised from duties on imports that the US...
which was formally known as the Continued Dumping and Subsidy Offset Act of 2000 legislated by the US. The essence of this act was that non-US firms which sell below cost price in the US could be fined and the money given to the US companies who made the complaint in the first place. The act adversely affected the commodities business of the complainant states and has since been repealed after WTO ruled the act to be illegal.
Furthermore, the Indian government took cognizance of the changed tea and coffee market and set up an Inter-Ministerial Committee (IMC) to look into their problems in late 2003. The IMC has recommended that the government share the financial burden of plantation industry on account of welfare measures envisaged for plantation workers mandated under the Plantation Labour Act 1951. Moreover, IMC has recommended to introduce means so that the agricultural income tax
Income tax
An income tax is a tax levied on the income of individuals or businesses . Various income tax systems exist, with varying degrees of tax incidence. Income taxation can be progressive, proportional, or regressive. When the tax is levied on the income of companies, it is often called a corporate...
levied by the state governments can be slashed and the tea industry be made competitive. It has recommended that sick or bankrupt plantation estates should be provided with analogous level of relaxation for similarly placed enterprises/estates as are available to industries referred to BIFR.
A Special Tea Term Loan (STTL) for the tea sector was announced by the Indian government in 2004. It envisaged restructuring of irregular portions of the outstanding term/working capital
Working capital
Working capital is a financial metric which represents operating liquidity available to a business, organization or other entity, including governmental entity. Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital. Net working capital is...
loans in the tea sector with repayment over five to seven years and a moratorium of one year, which was to be on a case to case basis for large growers. The STTL also provides for working capital up to Rs. 2 lakhs at a rate not exceeding 9% to small growers.
In addition to these measures, the Tea Board plans to launch a new marketing initiative, which will include foray into new markets such as Iran
Iran
Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...
, Pakistan
Pakistan
Pakistan , officially the Islamic Republic of Pakistan is a sovereign state in South Asia. It has a coastline along the Arabian Sea and the Gulf of Oman in the south and is bordered by Afghanistan and Iran in the west, India in the east and China in the far northeast. In the north, Tajikistan...
, Vietnam
Vietnam
Vietnam – sometimes spelled Viet Nam , officially the Socialist Republic of Vietnam – is the easternmost country on the Indochina Peninsula in Southeast Asia. It is bordered by China to the north, Laos to the northwest, Cambodia to the southwest, and the South China Sea –...
and Egypt
Egypt
Egypt , officially the Arab Republic of Egypt, Arabic: , is a country mainly in North Africa, with the Sinai Peninsula forming a land bridge in Southwest Asia. Egypt is thus a transcontinental country, and a major power in Africa, the Mediterranean Basin, the Middle East and the Muslim world...
. It also plans to renew its efforts in traditional markets like Russia, the UK, Iraq
Iraq
Iraq ; officially the Republic of Iraq is a country in Western Asia spanning most of the northwestern end of the Zagros mountain range, the eastern part of the Syrian Desert and the northern part of the Arabian Desert....
and UAE. Noteworthy is its intent to double tea exports to Pakistan within a year.
Assam
Assam
Assam , also, rarely, Assam Valley and formerly the Assam Province , is a northeastern state of India and is one of the most culturally and geographically distinct regions of the country...
Orthodox Tea is set to receive the Geographical Indications (GI) exclusivity. A GI stamp identifies a certain product as emanating from the territory of a WTO member or region or locality in that territory, where a given quality, reputation or other characteristic of the good is essentially attributable to its geographic origin.
The Cabinet Committee on Economic Affairs set up the Special Purpose Tea Fund (SPTF) under the tea Board on December 29, 2006. The aim is to fund replantation and rejuvenation (R&R) programme. In the same year, Tata Tea entered into an agreement to take over Jemca, which controls a 26 percent market share in the Czech Republic.
The CCEA gave its approval for pegging the subsidy
Subsidy
A subsidy is an assistance paid to a business or economic sector. Most subsidies are made by the government to producers or distributors in an industry to prevent the decline of that industry or an increase in the prices of its products or simply to encourage it to hire more labor A subsidy (also...
at 25 per cent and adoption of a funding pattern of 25 per cent promoter's contribution, 25 per cent subsidy from the government and 50 per cent loan from the SPTF. Banks have also been instructed to increase the lending period to over 13 years.