Tea consumption in Bangladesh is increasing 3 per cent per annum but its production is increasing 1 per cent only.

If
tea production was not increased Bangladesh would become a tea-importing country after 2020. Bangladesh is now
exporting 12,000 Metric Tons (MT) tea per annum, which earns Tk 90 crore. According to the Bangladesh Tea
Board currently Bangladeshi tea gardens are producing 56,000 MT of tea per annum. Of this 12,000 MT is exported.
Bangladesh’s current population growth rate is 1.6 per cent. Experts consider that in 2020 Bangladesh’s population
will reach to 18.10 crore. If the tea consumption growth rate continues, in 2020 tea consumption will reach to 6.50
crore kg while its production will reach only to 5.41 crore kg. 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 50,000 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. Sources said that currently in Bangladesh 161 tea gardens
contain 11,4,288.26 hectares of land. Of them 50,226 hectares of land were used for tea cultivation that is 44 per
cent of total land of tea gardens. Out of 161 tea gardens 26 were managed by foreign companies and those produce
50.50 per cent of Bangladesh total tea production. Tea gardens that were managed by foreign companies’ are
producing 1439 kg tea per hectares. On the other hand, 135 tea gardens were managed by Bangladeshi tea
companies. Tea gardens that were managed by Bangladeshi companies’ produce 622 kg tea per hectares.

Sources said that the tea gardens owned by Bangladeshi companies failed to increase its production due to lack of
plan, lack of modern technology and equipments. On the other hand 26 tea gardens owned by foreign companies
produce large quantity of tea due to modern technology and equipment and proper plan. Sources said that the
proposed strategic plan would be placed for approval soon. A meeting will be held soon with Planning Commission
and other concerned authorities in this regard for its pre-approval.It may be mentioned here that Bangladesh exports
tea to Pakistan, India, Afghanistan, Poland, United Kingdom, Russia, Kenya, Iran, Kazakstan, United Arab emirates,
Oman, Saudi Arabia, Greece, Ukraine, Kirgizistan, Turkmenistan and Uzbekistan. Of them Pakistan is highest tea
consuming country in the world. Special handmade Orthodox tea produced by public and private sector gardens of
Bangladesh is expected to find its room permanently at the world famous UK based super chain store Harrods
Limited. Bangladesh Tea Board (BTB) and tea industry sources said it will open up new avenues for Bangladesh
tea if the Harrods authority finally continues to show interest for marketing of Bangladeshi tea to the clients.
Sources said for the first time, the Harrods Limited which was established by British tea merchant Mr. Charles
Henry Harrod, has organized an exclusive sale promotion fair for Bangladeshi tea in London held from October 25
to November 6. The Harrods authority in its brochure published on the occasion titled "The Finest Bangladesh Teas
in the Finest British Store" attempted to lure its clients to Bangladeshi products by describing “Bangladesh Tea -
Tantalising flavours from outstanding estates". "For the last few years we have been closely following the
developments in Bangladesh, a country more known for paddy fields and floods. From a very small base Bangladesh
has now become the world's fifth largest producer of tea, exporting only small quantities to the United Kingdom" the
brochure said.

Harrods displayed tea produced by four gardens of Bangladesh with finest quality having special taste and flavour.
The gardens are Dauracherra Tea Estate, Silloah Tea Estate, Kazi and Kazi Tea Estate and the tea estate owned by
the Bangladesh Tea Research Institute. "Most encouraging and exciting thing was that whole chunk of the tea
amounting 500 kilograms imported by the Harrods were sold out within first few days of the sale" BTB Chairman
Brigadier General S A H M Tauhid told BSS. He Quoted the Harrods men as saying that the Bangladeshi tea drew a
huge response among the elite customer circle. He said Harrods fetched prices three to four times high from it's tea
to Japan through their marketing chain. "Some credit for inclusion of Bangladesh tea at the posh business center in
London must go to Mr. B. Rahman, a Bangladeshi and Senior Buyer of Harrods who played a key-role in the whole
affair" the BTB Chairman said. After getting good response from the customers about the products, the Harrods
authority is now keen to import big quantity of Bangladesh- tea.THE field and factory development project of the
Bangladesh Tea Board (BTB), which is being almost entirely funded by the UNs Common Fund for Commodities
(CFC), marks a serious effort by the Bangladesh Government to tone up the tea industry which is in a bad shape for
a long time. The project, the implementation of which is being spread over 10 years starting 2000-01, takes into
account the signs of increase in domestic consumption of tea due to population growth and improvement in the
socio-economic condition of the people. The authorities have also kept in view the emerging opportunities for thrust
on the marketing of tea, citing health benefits brought to the fore in recent years by researchers in several countries.
Currently, the consumption of tea in Bangladesh is a low of 250 grams per capita.

A recent FAO document, which gives details of the present state of the industry in Bangladesh, has observed that the
major problem areas are low yield (1,158 kg per hectare), high cost of production, low unit realisation, inadequate
availability of finance and large tracts of unutilised land. Out of the 158 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. Last year Bangladesh produced 54 million kg (mkg) of black tea (CTC), out of which the domestic
consumption was estimated at 36 mkg. Its exports were placed at 18 mkg. Considering the gestation of the
development project, the FAO document has placed its production in 2010 at 62 mkg. But, domestic consumption is
projected to grow at 45 mkg. Availability for export will show a negative growth at 17 mkg. The development
programme, therefore, aims at preventing a situation wherein Bangladesh becomes a net importer of tea. The cost of
the project has been estimated at $17.4 million. CFC is to provide interest free loan of $17 million. It will attract
service charge of one per cent.

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. The government has taken up a programme to cultivate
tea plants in an experimental basis in the 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. European Commission
(EC) has shown keen interest to invest in setting up tea gardens in the district. EC will invest Taka 3.3 crore for
three projects including set up of Tea Board office, BTRI and producing tea plant. The RAKUB will give loan of
Taka 46,500 as financial support to the growers for preparing of land, purchasing of tea saplings, fertilizers,
insecticides, irrigation and labourers to produce tea. Special handmade Orthodox tea produced by public and private
sector gardens of Bangladesh is expected to find its room permanently at the world famous UK based super chain
store Harrods Limited. Bangladesh Tea Board (BTB) and tea industry sources said it will open up new avenues for
Bangladesh tea if the Harrods authorities finally continue to show interest for marketing of Bangladeshi tea to the
clients. Sources said for the first time, the Harrods Limited which was established by British tea merchant Mr.
Charles Henry Harrod, has organized an exclusive sale promotion fair for Bangladeshi tea in London held from
October 25 to November 6.

The Harrods authority in it's brochure published on the occasion titled "The Finest Bangladesh Teas In The Finest
British Store" attempted to lure it's clients to Bangladeshi products by describing " Bangladesh Tea - Tantalising
flavours from outstanding estates"

"For the last few years we have been closely following the developments in Bangladesh, a country more known for
paddy fields and floods. From a very small base Bangladesh has now become the world's fifth largest producer of
tea, exporting only small quantities to the United Kingdom" the brochure said. Harrods displayed tea produced by
four gardens of Bangladesh with finest quality having special taste and flavour. The gardens are Dauracherra Tea
Estate, Silloah Tea Estate, Kazi and Kazi Tea Estate and the tea estate owned by the Bangladesh Tea Research
Institute. "Most encouraging and exciting thing was that whole chunk of the tea amounting 500 kilograms imported
by the Harrods were sold out within first few days of the sale" BTB Chairman Brigadier General S A H M Tauhid
told BSS.He Quoted the Harrods men as saying that the Bangladeshi tea drew a huge response among the elite
customer circle. He said Harrods fetched prices three to four times high from it's customers for per kilogram tea
compared to their import prices and it also exported the Bangladeshi tea to Japan through their marketing chain.
"Some credit for inclusion of Bangladesh tea at the posh business center in London must go to Mr. B. Rahman, a
Bangladeshi and Senior Buyer of Harrods who played a key-role in the whole affair" the BTB Chairman said. After
getting good response from the customers about the products, the Harrods authority is now keen to import big
quantity of Bangladesh- tea.

The latest Pakistani offer to enhance the duty-free quota margin in importing tea from Bangladesh would not bring
any trade benefit for Dhaka. Sources in the business circle told UNB that the Pakistani decision to raise the duty-free
quota margin from the existing 10,000 tons to 15,000 tons is virtually eyewash because Bangladesh is yet to achieve
the target of fulfilling the existing tea quota in the Pakistani market.Pakistan in the just concluded Joint Economic
Commission (JEC) meeting held in Dhaka on September 12 had positively responded to Bangladesh’s plea for
raising the duty-free quota margin for tea.In the agreed minutes signed at the end the trade talks, the Pakistani side
offered to enhance the duty-free quota of Bangladeshi tea to 15,000 tons per annum. “It could be better to seek duty
free access for other Bangladeshi items to the Pakistani market… While we can’t meet the existing duty-free quota
for tea in Pakistan what was the use of raising it such product,” said a top executive of Tea Traders Association of
Bangladesh (TTAB) preferring anonymity.

Export Promotion Bureau (EPB) sources said Bangladesh exported 11.06 million kg tea to some 27 countries in
2004-2005. Of the total, the country fetched US$ 10.75 million through exporting 7.5 million-kg (7,500-ton) tea to
Pakistan in 2004-2005 fiscal year. This was the highest volume of tea exported to the Pakistani market in last five
years, according to Bangladesh Tea Board sources. Deputy Secretary of the Ministry of Commerce of Pakistan
Waqar Ahmed Shah told UNB during his visit to Dhaka that Bangladesh need to develop more tea estates to raise its
tea export to Pakistan. “You have to develop more Sylhets… one Sylhet won’t be able to fulfill the demand of
Pakistani buyers,” he added. Referring to Kenya’s lead in the Pakistani tea market, he said that Bangladesh provides
only 8 percent of his country’s total tea demand while 60 percent came from Kenya.Tea production in the country
was recorded to be 53.62 million kg in 2002, 58.30 million kg in 2003, 56.02 million kg in 2004 and 24.73 million
kg in January-July of 2005, according to Bangladesh Tea Sangsad. Some 60 percent of tea produced in Bangladesh
is consumed domestically while the remaining 40 is exported. Bangladesh tea witnesses a better market this year
with the increase of both price and demand amid a rise in output despite a fall in its export, tea officials here said.
They added that tea prices increased by Tk 11 per kilogram on an average this season compared with that of the
previous season. In the first 21 auctions of the current season, 24 million kilograms of tea were sold with an average
price recorded at Tk 76 per kilogram as against 21 million of tea sold with an average price of Tk 65 per kilogram
during the same number of auctions in the previous season, they informed.Tea auction is held in the port city of
Chittagong once in every week while tea auction season begins from April and ends in March the next year. ‘Price
of tea jumped this time because of huge demand from home buyers particularly local packeteers and blenders who
are in a race to capture internal market,’ said an auction official Subir Das. ‘Foreign buyers also from Pakistan and
Afghanistan took part in the auctions here’ he added. According to official reports here, Bangladesh in the first eight
months from January to August this year produced 33 million kilograms of tea up from 31 million kilogram
produced in the previous year (2004) in 156 tea gardens.But export of Bangladesh tea in the first seven months
(January to July) of this year was recorded at 4.43 million kilograms, down from 5.48 million kilograms exported
during the same period of previous year, official reports said.

Talking to New Age, Nabi Hossain, deputy director of state-owned Bangladesh Tea Board said, ‘Our export of tea is
gradually sliding as the demand for home market and the price increased so much that export buyers could not
compete with local buyers’. ‘We think that in future there may not be any tea left for export from Bangladesh with
more increase of home demand unless the production is raised,’ Nabi said adding that most of the tea out of over 50
million kilograms produced annually in Bangladesh are consumed in the internal market’. In 2004 Bangladesh
exported 13 million kilograms of tea while 42 million kilograms were consumed in the internal market, official
reports said. Feroz Ahmed, former chairman of the Tea Traders Association of Bangladesh, said, our internal
consumption is increasing every year. So we don’t know, after ten years, whether we will have tea left for export if
the production cannot be raised.’ Bangladesh tea which was exported to 25 countries of the world ten years ago, now
finds buyers only in Pakistan, Afghanistan and CIS countries, tea sector sources said. Bangladesh joined in ‘organic
tea club’ by marketing the first ever organic tea produced by the ‘Kazi and Kazi Tea Estate’, the only tea garden in
the country’s northern region.The tea with the brand name ‘Meena’ was launched today (Thursday) in the market at
Meena Bazar, a modern departmental store, in city’s posh Dhanmondi residential area. At a launching ceremony,
Kazi Jamil Islam, Consultant of Meena Bazar, said that the tea is similar to world famous ‘Darjeeling Tea’ in taste
and flavour.Moreover, being produced in the virgin land of Tetulia, the ‘Meena Tea’ is free of any harmful chemical
fertilizer and chemical-free cow dung is the only natural fertilizer used for producing this tea, he said