Times Agricultural Journal

What role do you see for the Tatas in developing the Indian agriculture sector?

Tatas have always come forward to support government policies leading towards a globally competitive India and will consider participating in developing Indian agriculture at the appropriate juncture.

What is the scenario in the tea and coffee sector? What is the outlook for the coming year?

Indian tea production and exports over the last five years show an irregular trend. As against 846 million kgs produced in 2000 the estimates for 2001 rest at 855 million kgs. Up to end May 2001, the CCPA estimates show that production has been at par with last year’s levels. Exports against 198 million kgs have been pegged at 215 million kgs. Prices of tea remain depressed and continue to remain well below peak levels recorded in 1998. Lower prices have resulted in lowered value of tea exports from India. Coffee production shows buoyancy at 3.20 lakh tonnes, which is 7 per cent higher than last year. Price trends are on an absolute low. Robusta are at a 35-year low and Arabicas at a 7-year low. The forecast is that prices will remain static at current levels for the next 6 to 12 months.

Will the present import tariff of 74 per cent plus the counterveiling duty give the Indian tea industry sufficient protection after QRs are lifted?

The present import tariff of 74 per cent is expected to give adequate protection for domestic producers from proliferation of teas of cheaper origin.

How will the lifting of QRs affect Tata Tea?

Tata Tea’s operations are fairly well protected from the lifting of QR barriers.

What is your global strategy for tea? Do you have one for coffee too?

Tata Tea’s global strategy is to remain a dynamic force in the global tea industry. A first step to achieving this was the acquisition of Tetley group. The company is looking at selective acquisition of plantations abroad and for putting in place systems for global sourcing of tea. Plans are afoot to expand the Tata Tea group’s presence into Russia, Poland, CIS, Middle-East, etc., over the next 3-5 years. The company may also look at acquisition of brands within the country and overseas.