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Tea News and Biz Insights - November 19, 2021

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HEAR THE HEADLINES – Climate Pact Boosts Morale but Will Momentum Build? | Tea Lowers Risk and Severity of Stroke| Golden Leaf Awards Return | NEWSMAKER – Prabhat Bezboruah, Chairman of the Tea Board of India | FEATURES – India’s highest levels of government are reforming the basic structure of agriculture. The intent is to loosen regulations on pricing and storage and to permit direct sales of produce. The rules have protected India's farmers from the free market for decades. Prime Minister Narendra Modi has called the reforms a "watershed moment" for Indian agriculture. In Part 2 of Aravinda Anantharaman’s Newsmaker Interview --- Prabhat Bezboruah, Chairman of the Tea Board of India, describes a new board mission to increase consumption, promote tea exports and expand markets at home and overseas. He also addresses discussions underway to transfer regulatory oversight of India’s tea industry from the Ministry of Commerce to Agriculture and Farmers Welfare Ministry..

The tee Biz podcast delivers a recapof the week's major tea news headlines, with commentary and cultural trends. Hostedby Dan Bolton. Tee Biz is the voice of origin for tea professionals andenthusiast's world loot. Think of us as a digital caravan of story tellers,bringing authentic, authoritative and exclusive stories to you weekly from the tea lands.Hello everyone here. This week's headlines. Climate pack boosts morale, but willmomentum build? Tea Lower's risk and the severity of stroke and the Golden Leafawards of return. More in a minute, but first this important message. Whatmakes a Perfect Cup of Ceylon tea? The Perfect Cup is from the teabusinesses that ensure the protection of all the children living within their tea estates. We Salute Kailani Valley, tell a Wacky Lee, Bogo, Wanthalawa,Harana and Elyptia tea estates. Support Save the Children Sri Lanka. The Glasgowclimate pack constructively addresses issues critical to the tea industry, both for brands suchas carbon trading, and producers in emissions control and the document advances efforts toend deforestation and phase out coal. The pact makes concrete tools used to curbwarming establishes new rules to hold countries accountable for reducing emissions, but it fellshort of financing necessary mitigation and less developed tea lands. The pact also leavesunresolved how much and how quickly each nation...

...must cut emissions. Delegates returned totheir homelands demonstrating greater cohesion and consensus that every nation must do more before thetwo thousand and twenty two summit. While the agreement advances the Paris accords,it is not likely to contain atmospheric temperatures to less than one point five degreesCelsius above their pre industrial levels. Scientists estimate that close adherents to pledges bymajor emitters to cut emissions this decade may limit global warming to around two pointfour degrees Celsius. Warming to that level will rek havoc in the tea landsin three hot spots where degrading tea quality and reduction in yield are already aparent. South India is one hot spot where tea production is threatened. India'sprime minister made a bold promise to cut emissions to zero by two thousand andseventy India's first carbon public commitment to cap greenhouse gases. India is the world'sfourth largest emitter of carbon dioxide. China announced it will be carbon neutral bytwo thousand and sixty, and both the US and EU aim to reach netzero in two thousand and fifty. Business inside many of the seventy four countrieswhere tea is produced find it difficult to finance climate mitigation efforts at the farmlevel. Unresolved that this year's summit are concrete steps by developed countries to makegood on a hundred billion dollar a year promise to assist poor nations to buildclean energy alternatives to coal and wood. A decade long study of three hundredand sixty five thou people suggest that tea...

...and coffee drinkers are thirty two percentless likely to suffer a stroke when compared to non drinkers. Results of theUK biobank study, initiated in two thousand and six and continued through two thousandand twenty money, were reported this week in the online journal Plos medicine.The author's right that quote. While previous studies have looked at associations between teaand coffee consumption and better brain health. There has been inconsistency in findings andquote. Our findings suggest that moderate consumption of coffee and tea separately or incombination, were associated with lower risk of stroke and dementia, and quote.Rights Lead Author and professor Juan Jang at Tijian Medical University and Tijian China.He said it is also possible that coffee and tea consumption might be protective againstdementia and post stroke dementia. Strokes coose ten percent of deaths globally and oftenresult in post stroke dementia. Researchers side of weakness in the study and thatparticipants were in better health than the population as a whole, and that theparticipants were mainly white and British, ninety six percent. Quote. Therefore,we cannot infer in association that is relevant to everyone in the UK and quote. Biz inside, drinking two to three cups of coffee or three to fivecups of tea daily or in combination led to a twenty eight percent lower riskof dementia compared with those who do not drink tea. Your coffee researchers saythat around forty years of age, the immune system starts to decline as peopleage, they experience a form of chronic...

...low grade inflammation. Experts have linkedthis kind of age related inflammation to dementia and cognitive decline. The worldwide populationof those age sixty and over will grow to two point one billion by twentyfifty, according to the United Nations. Rates of dementia are expected to increasealongside this aging population. According to medical news today, the Golden Leaf Awards, sponsored by the Australian Tea Masters and suspended during the height of the pandemic, have returned in two thousand and twenty one. The deadline to enter thecompetition is near. Jessica a polly Willard has this report. If you havea tea that is available in Australia, you'll want to check out the twothousand and twenty one golden leaf awards and submit your teas by November thirty.The Golden Leaf awards are presented by the Australia Tea Masters and have many,many categories. You can enter green, black, white, yellow teas,Macha where herbles, Chai iced tea. There's even a category for Tea packaging. The judging is blind and done by industry professionals. Australia Tea Masters Founderand CEO, Sharon Johnston, joins us on the podcast today to talk aboutthe two thousand and twenty one competition, as well as this year's feature country, Sri Lanka. Why should someone submit their teas to the awards? It'sa great opportunity for small farmers, for people that have unique teas or peoplewho are blending their own tees to actually showcase it to the public. Canget their name out there and let people go to their website and find outwhat sort of teas they have. What...

...should our listeners know about the blindjudging for the Golden Leaf Awards? This one will be run actually with havingwhere able to have live judges again coming out and different sectors and will berunning our normal way. We ran it before. It was very hard becausewe're doing an individual days with individual judges and a lot of remotely, soit's quite hard to actually send out teas and get it judged and bring themback the results. Last year, but these she we're back to owl styleof judging, so everyone will be assembling into one place to judge. Yeah, we have limited numbers over limited days, so we will only have four perday, but we break up the categories anyway and we try to getspecialists in the the each particular category to actually like, for example, design, packaging design would be graphic designers and things like that. So we includedifferent sectors of the industry. What was your objective in founding these awards?When we first started, after being in a tea industry for quite a fewyears, I mean before or five years, I realized that there was no awardsin Australia for tea or even into out the Asian region, and Ivisited many small farmers around the world and realize that they didn't have an opportunity, which is why we started the category of a focused country and, yeah, just to give people the opportunity to put their teas into the Australian marketand and obviously now with online everybody's touchable. So we thought it was a greatchance to sort of showcase people's teeth. And when you see a focused country, who's the focus for two thousand and twenty one? So for thisyear we've chosen Sri Lanka because there's a group of about twenty five farmers whodeveloped some amazing teas and in small batches and so we choose a different countryeach year and for this year at Sri Lanka. So we're hoping to seesome amazing teeth from them and they're going to send them all in one back. We should get them this week.

So yeah, it's great. Thanksto Sharon for joining us today. Head to Golden Leaf AWARDSCOM DOT AU tolearn how to submit your tea before November thirty. You'll want to keep aneye on the site to to see BIOS and information about all this year's entranceone more time. That's Golden Leaf Awardscom dot a. You are a memberand there a man in Benglaloou reports on this week's India to auction prices.India tea price support for the week ending thirteen November twenty and twenty one.AFRI concerns about cheap imports of tea from Nepal. The focus is shifted toKenya. Can India's important and blended with Assam, Dad Jeli, Nilgiri andKONGRAT impacting the quality of Indian tea being sold? In the media reported thatimports from Kenya I have seen a one hundred forty six percent here n yourincreased between January and August this year. The Tea Board of India has takenthe stern stands, with the important being asked to report storage of imported teawithin twenty four us. The board will also do random checks of these teamsto ensure they conformed to requirement for the distribution within the country. The boardhas also issued circulars to tea stock is asking for reports and quantity and qualityof imports made in markets. This week called CATASA, good demand, especiallyfor Dusky CTC and Orthodox to so good demand. Prices remain nearly the sameas the previous week. Gohati, so good demand, with the major blendersactive in the south. Coach, so good demand for CTC leaf, withup country bias expressing interest. Export us to Seeis and Middle East for activeor orstodox leaf. CTC does so better demount of local bias, up countrybias and major package has komursa better demand for CTC leaf was compared to Orthodoxleave. And now it's winter sets in.

Attentions expected to turn to the southfor tease. Now or word from our sponsor. Q trade understands thata successful tea blend goes beyond the creative fusion of appearance, a Roma andflavor are multi award winning. Product Development team is passionate about converting natural ingredientsinto sensory experiences that customers crave. Every recipe is formulated with a commercial backboneof dependable quality sourcing, with a pricing structure that supports as safe, regulated, profitable and scalable bland. Q trade meets every brand's retail, food serviceand ECOMMERCE need. For more information, visit our website. Que Trade TascomIndi Oshio's levels of government are reforming the basic structure of agriculture. The intentis to loosen regulations on pricing and storage and to permit direct sales or produce. The rules have protected India's farmers from the free market for decades. PrimeMinister Norandimodius called the reforms quote a watershed moment and quote for Indian agriculture.In part two of arend and and Faramann's newsmaker interview from about Bisboro, chairmanof the Tea Board of India describes a new board mission to increase consumption,promote tea exports and expand markets at home and overseas. He also addresses discussionsunderway to transfer regulatory oversight of India's tea industry from the Ministry of Commerce tothe Ministry of Agriculture and Farmers Welfare. During the past few months, thathe board of India has shown signs of change. Stakeholders met to share betterunderstanding the prevailing use of the tea act of one thousand nine hundred and fiftythree. Several amendments we proposed in sections...

...within the act. What have wisedof? Discott, the Minister of State for Commas and ministry and the preacingpotal also visited several ty regions, meeting various groups from the t industry.We spoke to probout Bisboro, a chairman of the Tea Board of India,on the changes that are underway. has been used by the various reforms underway at the teaboat? What can we expect in the coming year? Thegovernment is going to revamp the tact it's going to be a wholesale reband therole of Tea Board is also going to be redefined. That's a work inprogress and it's already happening. Even the Plantation Labor Act is going to getsubsumed once the code on wages and the Occupational Safety and health has a thatimplemented. They've already been passed, but the implementation is being delayed a bitbecause the government is under is already under a lot of pressure. The economyis already under a lot of pressure due to the two covid waves and theresulting huge destruction in trade. And as soon as it comes in, thePlantation Labor Act will be subsumed by those two new acts and the two actshave a totally different take on the remuneration that a plantation workers. That's bigchange that we are foreseeing. It will impact the organized sector as well asthe unorganized sector, as well as the small Tis, and hopefully we createa little more level playing field. The other aspect is the tact itself,the tact and being amended. Once is ammended, the role of the TeaBoard will change. Will we be seeing this in two thousand and twenty two? Well, about the code on wages, I don't know. If you bringin the code on wages and the Occupational Safety and health has a thatnow, suddenly they'll be huge numbers of...

...small and marginal businesses that may gounder and it will be a big disrupting factor and the Indian icon. SoI feel that the code on wages and the Occupational Safety and Health has aact will be implemented in two thousand and twenty three, not twenty two.The T act amendments and modifications will definitely come through in two thousand and twentytwo. Should the tea board become the tea market expansion board once again,I suggested in the letter by the Cohati t auction bias association. Should thefocus be on building the market and promoting t should that be the tea boatspriority? Definitely, I mean that's what I've been saying for the last threeyears. I think that same letter was sent by the ITEF, the ideathe Indian Tea Exporters Association. So people are realizing that the tea board shouldfocus on marketing rather than on regulation, quality control, marketing and they needto ensure that good teas are sold in the country. They need to ensurethat demand for tie goes up. You spoke of quality being one of thosethings to go after, but is there enough innovation happening in the industry thatyou think is going to help to get better prices? Innovation is there.At the front end. They've come up with really fantastic tea rooms and keyboutiques where they sell realm Tis and Allen. Definitely this is one area where weshould move forward. In Australia and in the US there they have beennew methods of brewing tea, like pressure steam rather than water, which bringsout more of the flavor. So all those things are happening. But youknow, we are dealing with an output one three hundred and ninety million kilos. These innovative methods of reaching the ultimate...

...consumer welcome, it's not going tohelp bring that one thousand hundred and ninety or any sizeable percentage of that outputout of the more as it won't. You need to be innovative in thefield, which is not coming through. You need to be open minded tonew technology in the factories, which is not coming through. Basically, thetea industry remains very high bound. I believe that, you know, wedo need to come out of our Shell and we need to be receptive tonew technology. What's The teaboats response to challenges and concerns faced by the industry? We tend to, you know, give a lot of importance to theteaboard. But the teaboards abilities are limited. Ability to really help the industry inin very significant ways is limited. But the teaboard can change its focusnow or the what is the Tea Board Do? One I told you already. They run the auctions. The auctions are not badly run. The teyboardis. I don't think that they're being a very, very bad job,but they the whole structure of the auctions is wrong and the tea board hasn'trestructured there and we just took the manual action and converted it into a replica, electronic replica, where the hammer was replaced by the mouse. When hehad the option, the opportunity, of redesigning the whole platform, the wholestructure the platform, we had the opportunity, but we lost. That was intwo thousand and eight, seven eight. Now again the tea board is overregulating the industry, issuing licenses at its own way. So you know, that's really not the job of the...

...tea board. The Tea Board shouldactually monitor what is being imported into the country. You you mentioned that cheapimports. We can't block imports because under WTO you have to discourage it byhaving an import duty, and we already have a hundred percent import duty ont you can't go about that and you shouldn't actually right so, but wecan ensure that the tea coming into the country is still the Tea Board hasto monitor keys. The Tea Board is not doing that. I maybe they'll. They will now. I mean so far they haven't done they need tocheck what kind of packets are being sold in the in the market. Wetalk about the young generation not being that enthusiastic about tea moving onto beverages,other beveragees, other hot beverages like coffee and stuff. For that, whatare we doing to enstare that packets are of a reasonable quality? What arewe doing? You know, I'm surprised that there are packets which are beinglaunched below the most economy packet. You're going below the worst quality you alreadyhad to try and attract new customers. I feel that this kind of astrategy would actually push people away from tea. I feel that this whole concept ofcompeting on price, like they do in supermarkets in Europe and America,where a lot of things are priced driven. I feel that that strategy should notbe a in India because much lower segment that we are already in insupermarkets in America and Europe, the price...

...of tea that they have on theirshelves is fairly high compared to our our prices. So for them it doesmake sense to compete on price. But in India the cheapest packets are alreadyvery cheap and if you actually try to offer the consumers in cheaper you haveto compromise on quality and those kind of consumers who are offered these very cheapand very poor quality teas would get turned off from tea permanently, maybe.So you know, I think that the marketing was should be fought on qualityrather than on price, and that would expand the overall market for tea,and I feel that Tea Board has a role to play there, because Ifeel we should look at the really cheaper packets and maybe the other packets andand test them. We should also test what's coming out from our gardens andensure that all the tea that is sold in India is as safe as thatwhich is exported, because we talk about other countries, important countries, puttingnon tariff barriers on our tea by reducing their maximum residue limits, but Idon't think that's wrong. On their path. If somebody wants to protect its citizensor stringent key, then they have a that Dan well have the rightto do so and we ensure that our own citizens in the country, yeah, are drinking tea which is as safe as that which is exported. Whatabout news of the tea boat coming under the Ministry of Agriculture? Is thatsomething the industry of the Board has been pushing for? The board hasn't beenpushing for a there was a meeting recently where this, among other things,was discussed, but the meeting didn't reach any conclusion. There's going to beanother meeting and I think at the end of that meeting will have sort ofclear guidance about what what's going to happen...

...in the future. As far asthe industry is concerned, I think small tea growers are very keen that theboard and the industry be brought under the Agriculture Ministry. Small ty growers arevery key. As far as the larger producers are concerned and the associations areconcerned, there's no consensus. I think some people would prefer to be underagriculture and others would like the status cool. Te came under commerce because it wasIndia's most important export in the S to about nineteen. Fifty three ofthe people. Believe it or not, it was the biggest. It wasa export yielding the biggest revenue, the biggest value, rather so, thereforeit came under Commons. Today tea exports are just are under one billion ina total export value about three hundred billion. It's like point three percent. Soit doesn't deserve to be in the common but for historical reasons we areright and we get to agriculture. Might help small growers. I am notsure how much benefit it will bring. You know, taking it out ofcommerce might bring the export focus down and, as I said, exports remain alarge part of our business plan. I mean so domestic consumption is fivetimes exports practically now. Even then, exports are crucial in stabilizing the marketand ensuring a better price for producers. So I wouldn't like the export focusto go. What about the tea brands that are coming up port? Rolecan they play in building this market,...

...in supporting the industry? What wouldyou like to see them do? Well, I'd like to see them compete onquality, as they are doing tea box people like that have some reallyhigh quality of wings. But I would also like them to expand them marketsfaster than they're doing because, you know, as I told you, these innovativemarketing approaches are only barely scratching the surface when you're talking about a productionlevel of three thousand, three hundred and ninety million kilos. If you havea hundred thou a hundred twenty thousand kilos which is going into one of thesepremium brands, it's not really going to do make much of an impact onthe entire industry, on the industry as the whole. But that's not tobe in their efforts or they importance. They are very important because although djelink was only seven million kilos production, it used to act as a flagshipof India. Of Act, it produce of India, it but the GIand even today, when you talk about premium teas, the first tee thatcomes to mind is dually. So likewise, some of these brands which have comeinto the market recently, as long as they focus on exclusivity and highquality, as long as they, you know, are able to lift thewhole category up a little bit. They become a face industry, isn't it? Because they showcase the best of what is available and the best of whatis possible exactly. And and you see what would happened? Is there?If somebody drinks their t they would like it a lot and maybe they wouldtry another few brand their friends who can't afford such high price, these wouldbuy something like will the domestic market compensate for what is lost in the exportmarket? Supports now are only twenty percent...

...or less of our roadwood production,eighteen seventeen puck cent of road products. So we need to get people inIndia to drink more tea and better. If you can do that sort ofour marketing problems will be over. But sports are important because Indian knees exportsnumber one, and without exports you can't establish a stable and remunerative primary marketfor tea. So for both those reasons we need to focus on both exportsas well as posting domestic demand. Unda what would you say about the wholemove to organic tagling seems to be moving towards to turning organic as a wayto survive. To think that's necessary especially on the back of what has happenedin Sri Lunka. You See, the really needs organic because the the differencebetween a conventional estate, the differ they yield. DIFFERENCE BETWEEN A conventional estateand an organic one in the re Lan is less than it is here ina Sam Sam is the hot house. It's like a greenhouse, you know, temperatures, extremely humid conditions. Under these conditions, conventional agriculture will giveyou, if not double, but almost double the proper organic organic adult indn. Therefore, you need to sell your organic produce at almost double theprice of your convention produce, which the recent past, or even in youknow, the last twenty thirty years, hasn't been the case. There isstrong demand for organicit, but it's at price which is thirty or forty personmore than conventional thieves. And with that kind of price premium for organing itwon't be sustainable. And that's what happened...

...in Sri Lanka, and that witha boy step. They too, and you know, if they had stuckto it and if the and diet, the Global Dynastry, became organic,you'd be seeing huge price in pieces. Would see price is moving into theseven eight dollar bracket worldwide. Maybe more active in the whole industry. Theand diag global industry would have to. But in part one, T boardof India Chairman Probout Bisboro discusses the current situation and challenges, and he describesthe economic and societal forces driving change in India's t industry. Be Sure tolisten to part one on your favorite podcast player. Intrigued by what you heardin today's podcast, would you like to learn more from our global network ofTEB is, journalists and t experts? Remember to visit the Te Biz websitefor more comprehensive coverage. That's wwwt Biz Biz dolcom. Thanks for listening.Farewell. Till next week.

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