Dipak Shah awarded the Lifetime Achievement Award at the Tea Trade Association of Coimbatore (TTAC) 42nd Annual General Meeting

Shri. Dipak Shah of Crystal Tea India Private Ltd was today honoured with Lifetime Achievement Award for his exceptional and excellent contribution to the industry. He was presented with the award by Dr. M Muthukumar, Executive Director, Tea Board, Coonoor during the 42nd Annnual General Meeting of the Tea Traders Association of Coimbatore.

 

The Tea Trade Association of Coimbatore (TTAC) held its 42nd Annual General Meeting (AGM) today, chaired by Shri Dipak Shah. The event gathered key stakeholders of the tea industry, including tea traders, manufacturers, and exporters, to discuss the industry’s current landscape, challenges, and future prospects.

Shri Dipak Shah, in his welcome address, expressed gratitude to the sponsors of the event, including AVT as the Gold Sponsor, alongside 12 Silver Sponsors and 16 Associate Sponsors. This support, he stated, reinforces the association’s mission of “Connecting Stakeholders.”

The AGM was graced by esteemed guests:

• Chief Guest: Dr. M. Muthukumar, IAS, Executive Director of Tea Board, Coonoor.
• Guests of Honour: Shri Sanjay Shah, Director of Society Tea, Mumbai, and Shri B. Rajesh Chander, Vice Chairman of the Tea Board of India

In his welcome speech and the presentation of the annual report, Shri Dipak Shah provided an insightful analysis of the tea industry’s current scenario.

• Tea Production: India’s total tea production for the financial year 2023-24 stood at 1382 million kg, marking an increase of 7 million kg compared to the previous year. While North India saw a decline of 13 million kg in production, South India recorded an increase of 20 million kg.However, in the first seven months of 2024, India experienced a significant drop of 70 million kg in tea production, mainly due to a decline in both North and South India.
• Tea Exports: Exports witnessed a 10% growth, rising from 228 million kg in 2022-23 to 251 million kg in 2023-24. Notably, South Indian exports surged by 23%, a growth that reflects the region’s increased focus on global markets.
• Coimbatore Tea Auctions: Coimbatore Tea Auction Centre recorded a milestone with 20 million kg of tea sold during the year, up from 17 million kg the previous year. This marks the first time in 12 years that the Centre has achieved this volume.

Key Issues and Challenges

Shri Shah highlighted some of the key challenges faced by the tea industry, including the introduction of Section 194R under the Income Tax Act. This provision concerns the taxation of free trade samples, and despite discussions among stakeholders, no consensus has been reached on calculating the taxable value of these samples. TTAC plans to consult a leading tax expert in the coming weeks to resolve this matter.

Land Development Plans

One of the significant announcements during the AGM was the update on TTAC’s ongoing efforts to resolve the legal challenges related to obtaining Patta for the association’s land. The Chairman shared the positive news that discussions with relevant authorities are showing progress. Additionally, DP World (Dubai Port Authority) has expressed interest in collaborating with TTAC to establish a modern Tea Park, aimed at benefiting the entire tea industry.

Achievements and Contributions

TTAC continues to play a pivotal role in the tea industry. The association’s contributions over the years include:

• Organizing India’s first electronic tea auction in 2004.
• Hosting multiple National Tea Conventions to promote tea domestically and internationally.
• Engaging in significant philanthropic efforts, such as contributions to the Tamil Nadu Chief Minister’s Relief Fund and the Tsunami Relief Fund.

Shri Shah also extended his heartfelt thanks to the managing committee, sponsors, and association members for their unwavering support. He particularly acknowledged the contributions of TTAC’s secretary, whose dedication has been instrumental in the smooth functioning of the association.

Dr. M Muthukumar, IAS, Executive Director of the Tea Board was the Chief Guest, and he made an impactful speech. 

Dr. M. Muthukumar, IAS, Executive Director of the Tea Board, delivered an impactful speech today at the 42nd Annual General Meeting (AGM) of the Tea Trade Association of Coimbatore (TTAC). The event attracted stakeholders from across the tea industry, including traders, manufacturers, and exporters, and focused on key challenges and future directions for Indian tea.

Dr. Muthukumar began by expressing his gratitude to TTAC for the opportunity to address the gathering, emphasizing the critical role the association plays in shaping the future of tea trading and auctions in South India. He appreciated the efforts of TTAC in continually evolving to meet industry needs and highlighted its successful ventures in organizing electronic tea auctions and promoting South Indian teas both domestically and internationally.

Tea Production & Export Growth

During his address, Dr. Muthukumar noted that the tea industry has faced several challenges over the past year, including fluctuating production levels and climate-related disruptions. He shared key statistics indicating that while tea production in North India declined, South Indian tea production has shown resilience and growth, helping to balance the overall tea output of the country.

Tea exports, he noted, have seen a substantial increase, particularly from South India, marking a promising direction for the sector. Dr. Muthukumar stressed that continued focus on quality, value addition, and strategic marketing would further strengthen India’s presence in international markets.

Collaboration and Innovation

Dr. Muthukumar also emphasized the importance of collaboration across all levels of the tea industry, from growers to traders to exporters. He encouraged greater cooperation between industry stakeholders and government bodies like the Tea Board to address shared challenges, such as market dynamics, pricing issues, and technological advancement.

He particularly applauded TTAC for its foresight in leveraging technology, such as the Bharat Auction Model, which has streamlined the auction process. He expressed optimism about further innovation in the sector, particularly with new tools that can increase transparency and efficiency in tea trading.

Call for Sustainable Practices

Addressing the broader context of global tea markets, Dr. Muthukumar called for a stronger emphasis on sustainable practices. He advocated for eco-friendly approaches to tea cultivation and production, underscoring the need to respond to global demands for sustainability in agriculture.

Future Vision: Modern Tea Parks

One of the key highlights of his speech was the mention of the proposed development of modern Tea Parks. Dr. Muthukumar reiterated his support for establishing a Tea Park in Coimbatore, a vision shared by both the Tea Board and TTAC. This initiative aims to create an integrated infrastructure that will enhance processing, packaging, and storage facilities, ultimately boosting the overall efficiency of tea production and trade.

In conclusion, Dr. Muthukumar thanked the organizers and the members of TTAC for their continued contributions to the growth of the tea industry. He expressed confidence that the collaborative efforts between industry bodies and government agencies would propel the Indian tea sector to new heights in the years to come.

Shri Rajesh Chander, the Guest of Honour, highlighted critical areas such as price realization, organic tea production, climate change impact, and Environmental, Social, and Governance (ESG) compliance.

A Unified Approach to Price Realization

In his address, Shri Rajesh Chander stressed the importance of a unified effort to enhance the price realization of South Indian tea. He compared the tea industry to a bicycle wheel, where the success of the entire sector depends on the strength of each component, underscoring the need for cooperation among producers, buyers, and brokers.

Chander highlighted that South Indian tea has great potential for high quality and has been increasingly recognized for its excellence. The TGLA Award, instituted in 2005, was mentioned as a testament to the region’s capacity to produce world-class teas, further supported by the recognition of South Indian teas by international tasters.

Challenges and Opportunities in Organic Tea

The conversation also centered on the importance of promoting organic and value-added tea products. With growing global demand for sustainable agricultural practices, the industry has an opportunity to position itself strongly in the organic market. Shri Rajesh Chander urged stakeholders to explore more avenues for promoting organic tea, emphasizing the need for support from both the Tea Board and state governments.

However, he also pointed out the challenges small growers in Nilgiri face due to real estate development and the COVID-19 pandemic. These issues have highlighted the need for continued efforts to support small growers, particularly in realizing fair prices for their produce.

Climate Change and ESG Compliance

Climate change and ESG compliance were also key topics during the AGM. Chander discussed the necessity of adopting environmentally sustainable practices to ensure the long-term survival of the industry. He called for greater participation in ESG initiatives and highlighted the responsibility of the industry to adapt to evolving global standards in sustainability and governance.

Sustaining Market Conditions

In his closing remarks, Shri Rajesh Chander emphasized the importance of maintaining the current market conditions, calling for collective efforts to sustain the price levels of South Indian tea. He urged all stakeholders to contribute to a win-win scenario where producers, buyers, and sellers benefit equally.

Chander also noted the role of generic promotion for South Indian tea, which has been recently sanctioned by the Tea Board. He advocated for further promotional activities to ensure that South Indian tea continues to thrive in both domestic and international markets.

The AGM concluded with a final appeal from Shri Rajesh Chander for continued collaboration among all stakeholders. He stressed the spiritual and emotional connection people have with tea and the importance of ensuring the economic viability of the industry. The meeting ended with gratitude extended to the Chairman and an interactive session with the Executive Director of the Tea Board.

Shri Sanjay Shah, Director of Society Tea, Mumbai in his short note commended the Tea Board and the Tea Traders association for working in close unison like this and called for overall unified effort for better prices and also get more people to drink tea.

Earlier to the AGM, there was an excellent discussion on the market and its demand and supply and price realisation titled on the topic ” South Indian teas … Price discovery and way forward ” Thos was moderated by Dr M Muthukumar I.A.S., Executive Director, Tea Board India, Coonoor and Shri Dipak Shah, Chairman TTAC, Crystal Tea India Pvt. Ltd, Coimbatore.

The panelist who debated include:

Shri C Shreedharan, Tea Estates India Ltd, Woodbriar Coimbatore,
Shri N Anand, Shri Shakthi Associates, Coimbatore
Shri Cherian M George, Harrisons Malayalam Ltd, Cochin,
Shri Bipin Krishna, Van Rees India P Ltd, Coimbatore
Shri Sunil Goyal, Akshaya Tea Industries, Coonoor
Shri Manoj Gangadharan, Tata Consumer Products Ltd, Cochin
Shri Venkitraman Anand, Cochin,
Shri Nandagopal Shenoy, Cochin Devgiri Tea & Produce, Mangalore

 

The TTAC, established in 1980, is one of the leading tea auction centers in India, handling millions of kilograms of tea annually. The association is dedicated to advancing the interests of the tea industry through advocacy, innovation, and organizing auctions, promoting both domestic and international trade.

The 42nd AGM was a significant event that underscored TTAC’s leadership in the tea industry, reinforcing its commitment to overcoming challenges and exploring new growth opportunities.