| Taste the difference! |
Ethic rule for tea stirs debate
Calcutta, April 16: The industry is divided on the issue of Ethical Tea Partnership
(ETP) membership, which is required to make inroads into the United Kingdom.
A group of packaging companies started the ETP in 1997 in the UK to ensure that the
tea that comes to the country is from plantations that fulfill certain social
responsibilities towards their employees.
These include education, health and safety, housing and maternity benefits for
employees and child labour monitoring. The freedom to form associations and bargain
collectively is also acknowledged.
The ETP membership entails complex monitoring of gardens, which is done by
PricewaterhouseCoopers.
The exercise involves a questionnaire as well as personal visits from the agents
followed by a grading process, which is often too complex for smaller estates.
Moreover, many industry experts feel that gardens may not be comfortable revealing
their details to a foreign organisation.
According to estate owners, information regarding the retail chain revenue distribution
abroad should also be made available in exchange of garden details. A section sees
ETP membership, which is a market access issue in developed countries like the UK,
as a barrier to trade.
“Though the UK is an important market and a huge hub for re-exports, but
increasingly, a lot of the best Darjeeling is also going to Germany,” said Basudeb
Banerjee, chairman of Tea Board.
The production cost of Indian tea at around $1.60 to $1.70 per kg is one of the
highest in the world. This is mainly because of social expenses. In contrast, Kenya
spends $1 and Bangladesh 80 to 90 cents to produce a kg of tea. This aspect of
Indian tea has been highlighted of late to promote the commodity globally, said William
Gorman, executive chairman of the UK Tea Council.The ETP has 18 member
companies that includes Tetley and Williamson Magor.
India still needs time to become a part of this process and it has to be a gradual shift,
said Percy Siganporia, managing director of Tata Tea Ltd.
Calcutta, April 16: The industry is divided on the issue of Ethical Tea Partnership
(ETP) membership, which is required to make inroads into the United Kingdom.
A group of packaging companies started the ETP in 1997 in the UK to ensure that the
tea that comes to the country is from plantations that fulfill certain social
responsibilities towards their employees.
These include education, health and safety, housing and maternity benefits for
employees and child labour monitoring. The freedom to form associations and bargain
collectively is also acknowledged.
The ETP membership entails complex monitoring of gardens, which is done by
PricewaterhouseCoopers.
The exercise involves a questionnaire as well as personal visits from the agents
followed by a grading process, which is often too complex for smaller estates.
Moreover, many industry experts feel that gardens may not be comfortable revealing
their details to a foreign organisation.
According to estate owners, information regarding the retail chain revenue distribution
abroad should also be made available in exchange of garden details. A section sees
ETP membership, which is a market access issue in developed countries like the UK,
as a barrier to trade.
“Though the UK is an important market and a huge hub for re-exports, but
increasingly, a lot of the best Darjeeling is also going to Germany,” said Basudeb
Banerjee, chairman of Tea Board.
The production cost of Indian tea at around $1.60 to $1.70 per kg is one of the
highest in the world. This is mainly because of social expenses. In contrast, Kenya
spends $1 and Bangladesh 80 to 90 cents to produce a kg of tea. This aspect of
Indian tea has been highlighted of late to promote the commodity globally, said William
Gorman, executive chairman of the UK Tea Council.The ETP has 18 member
companies that includes Tetley and Williamson Magor.
India still needs time to become a part of this process and it has to be a gradual shift,
said Percy Siganporia, managing director of Tata Tea Ltd.
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