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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 recap of the week's major tea news headlines, with commentary and cultural trends. Hosted by Dan Bolton. Tee Biz is the voice of origin for tea professionals and enthusiast'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 will momentum build? Tea Lower's risk and the severity of stroke and the Golden Leaf awards of return. More in a minute, but first this important message. What makes a Perfect Cup of Ceylon tea? The Perfect Cup is from the tea businesses 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 Glasgow climate pack constructively addresses issues critical to the tea industry, both for brands such as carbon trading, and producers in emissions control and the document advances efforts to end deforestation and phase out coal. The pact makes concrete tools used to curb warming establishes new rules to hold countries accountable for reducing emissions, but it fell short of financing necessary mitigation and less developed tea lands. The pact also leaves unresolved how much and how quickly each nation...

...must cut emissions. Delegates returned to their homelands demonstrating greater cohesion and consensus that every nation must do more before the two 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 degrees Celsius above their pre industrial levels. Scientists estimate that close adherents to pledges by major emitters to cut emissions this decade may limit global warming to around two point four degrees Celsius. Warming to that level will rek havoc in the tea lands in three hot spots where degrading tea quality and reduction in yield are already a parent. South India is one hot spot where tea production is threatened. India's prime minister made a bold promise to cut emissions to zero by two thousand and seventy India's first carbon public commitment to cap greenhouse gases. India is the world's fourth largest emitter of carbon dioxide. China announced it will be carbon neutral by two thousand and sixty, and both the US and EU aim to reach net zero in two thousand and fifty. Business inside many of the seventy four countries where tea is produced find it difficult to finance climate mitigation efforts at the farm level. Unresolved that this year's summit are concrete steps by developed countries to make good on a hundred billion dollar a year promise to assist poor nations to build clean energy alternatives to coal and wood. A decade long study of three hundred and sixty five thou people suggest that tea...

...and coffee drinkers are thirty two percent less likely to suffer a stroke when compared to non drinkers. Results of the UK biobank study, initiated in two thousand and six and continued through two thousand and 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 tea and coffee consumption and better brain health. There has been inconsistency in findings and quote. Our findings suggest that moderate consumption of coffee and tea separately or in combination, 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 against dementia and post stroke dementia. Strokes coose ten percent of deaths globally and often result in post stroke dementia. Researchers side of weakness in the study and that participants were in better health than the population as a whole, and that the participants 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 five cups of tea daily or in combination led to a twenty eight percent lower risk of dementia compared with those who do not drink tea. Your coffee researchers say that around forty years of age, the immune system starts to decline as people age, they experience a form of chronic...

...low grade inflammation. Experts have linked this kind of age related inflammation to dementia and cognitive decline. The worldwide population of those age sixty and over will grow to two point one billion by twenty fifty, according to the United Nations. Rates of dementia are expected to increase alongside 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 the competition is near. Jessica a polly Willard has this report. If you have a tea that is available in Australia, you'll want to check out the two thousand 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 Founder and CEO, Sharon Johnston, joins us on the podcast today to talk about the 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's a great opportunity for small farmers, for people that have unique teas or people who are blending their own tees to actually showcase it to the public. Can get their name out there and let people go to their website and find out what sort of teas they have. What...

...should our listeners know about the blind judging for the Golden Leaf Awards? This one will be run actually with having where able to have live judges again coming out and different sectors and will be running our normal way. We ran it before. It was very hard because we're doing an individual days with individual judges and a lot of remotely, so it's quite hard to actually send out teas and get it judged and bring them back the results. Last year, but these she we're back to owl style of 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 per day, but we break up the categories anyway and we try to get specialists in the the each particular category to actually like, for example, design, packaging design would be graphic designers and things like that. So we include different 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 few years, I mean before or five years, I realized that there was no awards in Australia for tea or even into out the Asian region, and I visited 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 market and and obviously now with online everybody's touchable. So we thought it was a great chance 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 this year we've chosen Sri Lanka because there's a group of about twenty five farmers who developed some amazing teas and in small batches and so we choose a different country each year and for this year at Sri Lanka. So we're hoping to see some 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. Thanks to Sharon for joining us today. Head to Golden Leaf AWARDSCOM DOT AU to learn how to submit your tea before November thirty. You'll want to keep an eye on the site to to see BIOS and information about all this year's entrance one more time. That's Golden Leaf Awardscom dot a. You are a member and 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 to Kenya. Can India's important and blended with Assam, Dad Jeli, Nilgiri and KONGRAT impacting the quality of Indian tea being sold? In the media reported that imports from Kenya I have seen a one hundred forty six percent here n your increased between January and August this year. The Tea Board of India has taken the stern stands, with the important being asked to report storage of imported tea within twenty four us. The board will also do random checks of these teams to ensure they conformed to requirement for the distribution within the country. The board has also issued circulars to tea stock is asking for reports and quantity and quality of imports made in markets. This week called CATASA, good demand, especially for Dusky CTC and Orthodox to so good demand. Prices remain nearly the same as the previous week. Gohati, so good demand, with the major blenders active in the south. Coach, so good demand for CTC leaf, with up country bias expressing interest. Export us to Seeis and Middle East for active or orstodox leaf. CTC does so better demount of local bias, up country bias and major package has komursa better demand for CTC leaf was compared to Orthodox leave. And now it's winter sets in.

Attentions expected to turn to the south for tease. Now or word from our sponsor. Q trade understands that a successful tea blend goes beyond the creative fusion of appearance, a Roma and flavor are multi award winning. Product Development team is passionate about converting natural ingredients into sensory experiences that customers crave. Every recipe is formulated with a commercial backbone of dependable quality sourcing, with a pricing structure that supports as safe, regulated, profitable and scalable bland. Q trade meets every brand's retail, food service and ECOMMERCE need. For more information, visit our website. Que Trade Tascom Indi Oshio's 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 or produce. The rules have protected India's farmers from the free market for decades. Prime Minister 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, 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 the Ministry of Agriculture and Farmers Welfare. During the past few months, that he board of India has shown signs of change. Stakeholders met to share better understanding the prevailing use of the tea act of one thousand nine hundred and fifty three. Several amendments we proposed in sections...

...within the act. What have wised of? Discott, the Minister of State for Commas and ministry and the preacing potal 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 under way at the teaboat? What can we expect in the coming year? The government is going to revamp the tact it's going to be a wholesale reband the role of Tea Board is also going to be redefined. That's a work in progress and it's already happening. Even the Plantation Labor Act is going to get subsumed once the code on wages and the Occupational Safety and health has a that implemented. They've already been passed, but the implementation is being delayed a bit because the government is under is already under a lot of pressure. The economy is already under a lot of pressure due to the two covid waves and the resulting huge destruction in trade. And as soon as it comes in, the Plantation Labor Act will be subsumed by those two new acts and the two acts have a totally different take on the remuneration that a plantation workers. That's big change that we are foreseeing. It will impact the organized sector as well as the unorganized sector, as well as the small Tis, and hopefully we create a little more level playing field. The other aspect is the tact itself, the tact and being amended. Once is ammended, the role of the Tea Board 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 bring in the code on wages and the Occupational Safety and health has a that now, suddenly they'll be huge numbers of...

...small and marginal businesses that may go under and it will be a big disrupting factor and the Indian icon. So I feel that the code on wages and the Occupational Safety and Health has a act 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 twenty two. 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 the focus be on building the market and promoting t should that be the tea boats priority? Definitely, I mean that's what I've been saying for the last three years. I think that same letter was sent by the ITEF, the idea the Indian Tea Exporters Association. So people are realizing that the tea board should focus on marketing rather than on regulation, quality control, marketing and they need to ensure that good teas are sold in the country. They need to ensure that demand for tie goes up. You spoke of quality being one of those things to go after, but is there enough innovation happening in the industry that you 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 key boutiques where they sell realm Tis and Allen. Definitely this is one area where we should move forward. In Australia and in the US there they have been new methods of brewing tea, like pressure steam rather than water, which brings out more of the flavor. So all those things are happening. But you know, 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 to help bring that one thousand hundred and ninety or any sizeable percentage of that output out of the more as it won't. You need to be innovative in the field, which is not coming through. You need to be open minded to new technology in the factories, which is not coming through. Basically, the tea industry remains very high bound. I believe that, you know, we do need to come out of our Shell and we need to be receptive to new 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 the teaboard. But the teaboards abilities are limited. Ability to really help the industry in in very significant ways is limited. But the teaboard can change its focus now or the what is the Tea Board Do? One I told you already. They run the auctions. The auctions are not badly run. The teyboard is. 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't restructured 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 he had the option, the opportunity, of redesigning the whole platform, the whole structure the platform, we had the opportunity, but we lost. That was in two thousand and eight, seven eight. Now again the tea board is over regulating the industry, issuing licenses at its own way. So you know, that's really not the job of the...

...tea board. The Tea Board should actually monitor what is being imported into the country. You you mentioned that cheap imports. We can't block imports because under WTO you have to discourage it by having an import duty, and we already have a hundred percent import duty on t you can't go about that and you shouldn't actually right so, but we can ensure that the tea coming into the country is still the Tea Board has to 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 to check what kind of packets are being sold in the in the market. We talk about the young generation not being that enthusiastic about tea moving onto beverages, other beveragees, other hot beverages like coffee and stuff. For that, what are we doing to enstare that packets are of a reasonable quality? What are we doing? You know, I'm surprised that there are packets which are being launched below the most economy packet. You're going below the worst quality you already had to try and attract new customers. I feel that this kind of a strategy would actually push people away from tea. I feel that this whole concept of competing 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 not be a in India because much lower segment that we are already in in supermarkets in America and Europe, the price...

...of tea that they have on their shelves is fairly high compared to our our prices. So for them it does make sense to compete on price. But in India the cheapest packets are already very cheap and if you actually try to offer the consumers in cheaper you have to compromise on quality and those kind of consumers who are offered these very cheap and 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 quality rather 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 I feel we should look at the really cheaper packets and maybe the other packets and and test them. We should also test what's coming out from our gardens and ensure that all the tea that is sold in India is as safe as that which is exported, because we talk about other countries, important countries, putting non tariff barriers on our tea by reducing their maximum residue limits, but I don't think that's wrong. On their path. If somebody wants to protect its citizens or stringent key, then they have a that Dan well have the right to 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. What about news of the tea boat coming under the Ministry of Agriculture? Is that something the industry of the Board has been pushing for? The board hasn't been pushing 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 be another meeting and I think at the end of that meeting will have sort of clear guidance about what what's going to happen...

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

...in supporting the industry? What would you like to see them do? Well, I'd like to see them compete on quality, as they are doing tea box people like that have some really high quality of wings. But I would also like them to expand them markets faster than they're doing because, you know, as I told you, these innovative marketing approaches are only barely scratching the surface when you're talking about a production level of three thousand, three hundred and ninety million kilos. If you have a hundred thou a hundred twenty thousand kilos which is going into one of these premium brands, it's not really going to do make much of an impact on the entire industry, on the industry as the whole. But that's not to be in their efforts or they importance. They are very important because although dje link was only seven million kilos production, it used to act as a flagship of India. Of Act, it produce of India, it but the GI and even today, when you talk about premium teas, the first tee that comes to mind is dually. So likewise, some of these brands which have come into the market recently, as long as they focus on exclusivity and high quality, as long as they, you know, are able to lift the whole 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 what is 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 would try another few brand their friends who can't afford such high price, these would buy something like will the domestic market compensate for what is lost in the export market? 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 in India to drink more tea and better. If you can do that sort of our marketing problems will be over. But sports are important because Indian knees exports number one, and without exports you can't establish a stable and remunerative primary market for tea. So for both those reasons we need to focus on both exports as well as posting domestic demand. Unda what would you say about the whole move to organic tagling seems to be moving towards to turning organic as a way to survive. To think that's necessary especially on the back of what has happened in Sri Lunka. You See, the really needs organic because the the difference between a conventional estate, the differ they yield. DIFFERENCE BETWEEN A conventional estate and an organic one in the re Lan is less than it is here in a Sam Sam is the hot house. It's like a greenhouse, you know, temperatures, extremely humid conditions. Under these conditions, conventional agriculture will give you, if not double, but almost double the proper organic organic adult in dn. Therefore, you need to sell your organic produce at almost double the price of your convention produce, which the recent past, or even in you know, the last twenty thirty years, hasn't been the case. There is strong demand for organicit, but it's at price which is thirty or forty person more than conventional thieves. And with that kind of price premium for organing it won't be sustainable. And that's what happened...

...in Sri Lanka, and that with a boy step. They too, and you know, if they had stuck to 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 the seven eight dollar bracket worldwide. Maybe more active in the whole industry. The and diag global industry would have to. But in part one, T board of India Chairman Probout Bisboro discusses the current situation and challenges, and he describes the economic and societal forces driving change in India's t industry. Be Sure to listen to part one on your favorite podcast player. Intrigued by what you heard in today's podcast, would you like to learn more from our global network of TEB is, journalists and t experts? Remember to visit the Te Biz website for more comprehensive coverage. That's wwwt Biz Biz dolcom. Thanks for listening. Farewell. Till next week.

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