Sino-India \'chai pe charcha\' as Indian tea companies look to expand in China

Sino-India ‘chai pe charcha’ as Indian tea companies look to expand in China

Chinese tea companies have shown interest in learning about the e-auction platform used by companies in India to bring together sellers and buyers online to streamline the marketing of tea, an Indian official has said.

india Updated: Oct 25, 2018 13:57 IST
The unique process of e-auction of tea in India, the second-largest tea producing country in the world after China, was discussed during a meeting of nearly two dozen Indian companies with several Chinese counterparts in Beijing on Wednesday.(Getty Images/Picture for representation)

Chinese tea companies have shown interest in learning about the e-auction platform used by companies in India to bring together sellers and buyers online to streamline the marketing of tea, an Indian official has said.

The unique process of e-auction of tea in India, the second-largest tea producing country in the world after China, was discussed during a meeting of nearly two dozen Indian companies with several Chinese counterparts in Beijing on Wednesday.

“The Chinese tea industry (representatives) expressed the desire that they would like to know about the e-auction platform we have in India, which is a very unique proposition,” Arun Kumar Ray, the deputy chairperson of India’s Tea Board, said while speaking to the Hindustan Times on Tuesday.

“And, on our teas which are sold through the e-auction, and we are going to give a presentation to them on that. And, if possible when they come (to India), we will introduce them to our system … And, examine whether it will be possible to trade with China on the e-platform,” Ray said on the sidelines of a seminar on India, China cooperation on tea, titled “Brewing Tea-Bonding Relations”.

The seminar and the preceding buyer-seller meet were focussed on expanding two-way trade in tea between the two countries. India’s tea exports to China increased by about 30% year-on-year in 2017 to about 9 million kg but, according to Ray, it remains a largely unexplored market for Indian companies.

China is number 10 on the list countries India exports tea, which is led by Russia and Iran; India is the third largest tea exporter to China. Indian tea, however, is not available on the retail market in China and it is mostly purchased by large and niche tea companies here.

The Assam CTC tea, officials said, is what is mostly exported to China.

“Last year, we have exported about 9 million kg of tea, which is nearly 30% of the tea imports made by China. There is a demand for Indian teas in China. This (Indian) delegation is specifically to explore the Chinese market and to see in which areas we can diversify and increase our exports,” Ray said.

Indian companies are looking to export new types of tea to China where new demand, according to Indian officials, is being fuelled by demand for India-grown black tea.

“The young Chinese populations are going in for new types of tea. The flavour of the tea is important,” Ray said, adding that is where India could meet the demand with different varieties like Darjeeling, Assam and Nilgiri teas.

Talking about the scope for Indian tea in China, Wang Qing, president of the China Tea Marketing Association called “Darjeeling tea as the champagne of teas”.

Indian ambassador to China Gautam Bambawale recollected the history of Sino-India tea trade.

“The tea trade between India and China goes back in history. The ancient Tea-Horse trade route connected Yunnan Province in China to the tea-growing regions of India in West Bengal and Assam,” he said.

First Published: Oct 25, 2018 13:57 IST