![]() Financial Daily from THE HINDU group of publications Thursday, Feb 28, 2002 |
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Agri-Biz & Commodities
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Tea Marketing - Retailing Tea planters begin unblended retailing Our Bureau
KOLKATA, Feb. 27 A SECTION of tea planters, who are not getting attractive prices at the traditional auction centres, have started retailing their unblended teas in sloppy packets under obscure brand names. These products have been launched in Uttar Pradesh, Gujarat, Maharashtra, Madhya Pradesh, Rajasthan, Punjab and other markets. These planters have been encouraged by the success of the leading packet tea manufacturers such as Tata Tea, Hindustan Lever and others. Industry sources said these planters were hoping to make more money by by-passing the traditional channels of marketing. However, their brands were not promoted properly and their products not blended with other varieties to make them attractive. As a result, the markets are flooded with all types of teas and at all sorts of prices. This has only resulted in a further decline in tea prices. Sources said this had helped neither the industry nor the trade. "This move by the section of the planters can be called suicidal and it has in no way improved the prices of tea of average quality,'' sources said. Mr P.O. Desai, President of the Federation of All India Tea Traders Association, has severely criticised the trade practice. He also felt it did not serve anybody's interest. "There is another negative aspect to the whole issue. More than enough tea is now lined up at the retail level, making the market over-saturated with all sorts of packet tea,'' he said. A producer of a leading packet tea brand said the planters concerned were attracted by the selling prices of the leading brands in the market. "However, they had no information that even these brands are selling their products at a lower price,'' the packeteer said. Moreover, a substantial amount of time, money and management expertise is needed for the development, promotion and launching of a particular brand. "These brands are introduced at random without any proper blending to suit the tastes of regional consumers. As a result, this is certain to make a negative impact on the future of the packet tea industry'', sources said.
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