Times Agricultural Journal

BREWING A STRONGER CUPPA

Tata Tea is flexing its muscles and gearing up to become a heavy weight in the global tea industry

Tea Plantations At a time when Indian agriculture is opening up to private corporates, India’s leading plantation company, Tata Tea provides a role model and a benchmark. The company has battled an adverse business evironment to emerge as the world’s largest integrated tea producer. But the company still believes it has miles to go and promises to keep. Vice chairman, R K Krishna Kumar spoke to TAJ about the company’s plans and the agriculture sector

The National Agricultural Policy proposes to step up private sector participation in agriculture through contract farming and land leasing agreements. Do you see this happening?

Participation of corporates/private sector in agriculture through contract farming and leasing agreements would only take off if there is a cohesive policy framework promising greater investment in agriculture (including infrastructure development), promoting greater industry – agriculture interdependence and most importantly the quality of land which will be offered for the purpose.

Mr. R K Krishna Kumar
Age of bushes and agro-climatic conditions play a vital role in deciding or putting a quality label on these teas

R K Krishna Kumar, Vice Chairman, Tata Tea

What are the problems in Indian agriculture today, particularly with respect to plantations and commodities?

The major problems with Indian agriculture today especially in case of cereal crops and to a varying extent for cash crops are:

massive food grain stocks,

issue prices at the PDS ration shops in many areas are believed to be higher than the open market prices,

the rural population is suffering the diminution of purchasing power in view of the set back to the growth of agricultural production,

non-formalisation of the basic structural policies related to freer movement of goods, consolidation of land holdings, corporatisation of agriculture, build up of rural infrastructure and a concerted drive towards boosting exports and establishment of food processing facilities.

Costs, agronomic advantages and lower taxation put other producing countries at a competitive advantage. There is a definite constraint on availability of land to expand horizontally. All growth would be from existing plantations. Labour wages are high and ever increasing. Low commodity prices have become a deterrent to growth of branded segment.