It feels great to have on-boarded 8 advertisers and publish 14 articles, interviews and stories, in the very first issue of the magazine.

Our team travelled across India to personally meet Industry stalwarts to make this publication happen and are very sure to make this publication a very useful, prominent and happening one for the Tea and Coffee industry, in the times to come.

We also aim to take this platform to International markets including Nepal, Sri Lanka, Bangladesh, Vietnam and Indonesia, soon.

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Interview conducted by – Payal Agrawal for Tea & Coffee Trade Media

The coffee business was started by his grandfather Mr NK Shrinivas Shetty and subsequently carried on by his father Mr Jayaram. As his brand name-‘ World of Coffee’ suggests, they have been in the coffee business for 75 years. Having grown up in a coffee-oriented family, Mr Sahdev developed a love for coffee at an early age. In addition to his industrial engineering degree from Arya College, he also completed a specialization course in coffee from Singapore SCA. In a candid conversation with TCTM, Mr Sahdev gives an insight into several dimensions of the Coffee business. Excerpts:

‘World of Coffee’ has carved a niche in the market and become a favourite of customers. What are your immediate plans to take the business to the next level?

As a final experiment, we set up an experience centre with hands-on roasting of coffee beans, near-experience of coffee aroma along with brewing of your cup of coffee. Shortly, we plan to launch a new product under our brand world of coffee with a premium experience. Using the online platform, we will provide our customers with a customized and personalized online experience. The possibility of franchising our products is very much on the table. The company has around five outlets within a 200 km radius of Chikmagalur, and we plan to open around 30-50 outlets by the end of this fiscal year. 

Is there a competition between two beverages- Coffee versus Chai: Which is better?

I believe that each product has its place and that they go hand in hand with each other. The popularity of tea is greater in the northern parts of India compared to the southern parts of the country. I have to admit that my personal favourite is the traditional filter coffee of 1952. 

How do you drive your business goals and employees?

Approximately 40 employees work for us, a mix of skilled and unskilled workers. Our business employs several women, and even my wife handles one coffee unit. We are giving the coffee a new identity by encouraging local coffee culture. Our premium segment is priced reasonably. The price of our coffee is much cheaper than that of reputed cafes, which usually costs 250-300 rupees. It is our company’s main goal to make every Indian a coffee lover and to provide a personalized coffee experience. There is nothing like a good cup of coffee to make your day better.

What challenges do you face in the market and how do you overcome them?

The key challenges in the market today are competition and capacity building. India is severely lacking in several proper training institutes for the coffee sector and it is very difficult to find skilled labour in this sector. Due to this lack of skilled labour, more training costs and time are incurred. I would advise my colleagues to provide a top-notch experience, make it unique, and give it at a reasonable price. Training for capacity building is required in the industry.

What is so special about Chikmagalur and your offerings?

Chikmagalur is a must-see attraction. Its location makes it a must-see attraction for many visitors. For a very reasonable price, the tour lasts about half a day and it includes the opportunity to brew your coffee and taste its different flavours of it. The unique things about us are the cafe configuration that acts as a semi-museum for visitors, the coffee tours that we offer, and the mouthful of open knowledge we provide about coffee.

What is it like to be a part of this industry and how does it make you feel?

This industry has always been a dream of mine, so it feels good to be a part of it now. My age makes me the youngest owner of a coffee shop in this industry. Coffee is considered to be a more sophisticated drink, but this isn’t necessarily the case. There are traditional segments and premium products within our company. Although we are slowly moving towards the path other famous brands have achieved, we are still focused on providing a more Indianised look to the product. As far as food and snacks are concerned, we have a cappuccino, latte, cafe frappe, pizza, croissant sandwich, hazelnut banana slice, and cappuccino. The coffee beans and other raw materials we use are sourced from different parts of India, such as Kurg, Waynard, and the Western Ghats, as well as other countries, such as Columbia and Uthopia.

What are new initiatives?

You can find our products on Amazon, Flipkart, etc. Our franchise partners are welcomed with open arms if they are willing to invest around Rs 8-12 lacs with a return on investment of two to three years, on an ongoing basis. ‘World of Coffee’ would be happy to provide support to new and young entrepreneurs who wish to join a rapidly growing industry.

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The migration of bulk tea offerings from auction to other channels has drastically reduced
competition in the auction, and an auction with restricted competition is very detrimental for
the seller, says Former Tea Board Chairman Prabhat Bezboruah while assessing the
current tea ecosystem in the country.

In his own words..

The Indian tea industry turns 200 in 2026. It’s only befitting that Assam, where its
foundations were laid in 1826 by Robert Bruce, today produces 55% of India’s output of tea,
and is the largest contiguous tea growing area in the world. However, if recent trends are
extrapolated, it’s likely that Kenya will surpass Assam in around a quarter century. This will
just be one among the many crowns that the Indian tea industry has lost successively over
several decades. We are no longer the largest producer, no longer the largest exporter, no
longer the largest consumer, and even no longer the holder of the highest average price for
our produce. However, we must first debate whether these records are in themselves
significant, or whether we should seek other yardsticks to evaluate the performance and
health of the sector.

I will venture to state that mere production, export or price records do not reflect the true
health or performance of a sector, and once you acknowledge this, the same would hold
true for the tea industry as well. The criterion should be the well-being and sustainable
development of the stakeholders of the sector in question, and unfortunately, the tea
industry fails on these criteria as well. The litany of woes that follow basically stem from the
fact that the price of tea has not even kept pace with the WPI, which probably is the result
of primary market imperfections, and lack of supply management.

Small tea growers: Face an uncertain future, with returns of as low as Rs 25,000 per
hectare which is lower than wheat or rice. Average holdings being half a hectare or even
less, this is not sufficient to feed a family and is far below the minimum wage. However,
small tea growers (STGs) proliferated during 1990-2010 and collectively became a
formidable economic and social factor in Upper Assam, North Bengal and the Nilgiris.

Bought leaf factories: Operate on a cost-plus basis and so are largely insulated from the
fluctuations in the price of raw material and other input costs. However, in a falling market,
tea produced from leaves sourced at higher prices needs to be offloaded fast, and the
auction system which has a sales lag of 5 weeks from the manufacture, has often subjected
the sector to huge losses. A high percentage of BLF teas are sold through private sales
channels.

Composite gardens: have suffered losses for many years now, and many companies are
exiting the sector having already eroded most of their net worth. The sector is burdened
with huge social costs, being required to provide a resident workforce with most of the

basic necessities in life. Despite this, worker productivity remains low, and the output per
worker ranges from Rs500 per man-day in North India, to Rs 900 per man-day in South
India. Composite gardens are also assailed at every stage by Government and bureaucratic
interference and also political pressures. Lately, the Assam government has taken up many
welfare projects in composite gardens, and also enacted tea legislation which is industry-
friendly and may result in an economic revival of Upper Assam. The governments of West
Bengal and Assam have also permitted limited diversified use of tea land which is a lease in
Bengal and restricted use “Patta” in Assam. However, the basic fact that tea is seasonal
agriculture in North India, and cannot sustain permanent workers has never been
acknowledged or recognized. With climate change, the harvest season is getting shortened
and the problem of what to do with the permanent workforce during the off-season is
getting further aggravated.

Employees: of the tea sector are not well compensated. The small tea growers pay even less
to their workers, in case their own labour and that of family members are not adequate to
manage the farm. The continuous losses sustained by the sector have made it unable to pay
better wages to its employees. The huge non-cash component of wages is not compliant
with the new code on wages legislation enacted by the Union government, but the workers
are not willing to accept wholesale monetization of the same, citing precedent and the
inability of the workforce to make wise consumption decisions. With even limited
mechanization, the worker requirement in composite gardens will reduce to around half of
present levels and increase productivity and improve the livelihoods of the tea workers; But,
in North Bengal and Assam- where would the surplus workers work? The slow pace of
industrialization in these regions is a major hurdle to improving efficiency.

Shareholders: of plantation companies have not been able to earn adequate returns on
capital invested, with the shares of the same vastly underperforming the index in almost all
the decades. Very little new capital is flowing into the industry, and unfortunately, some
companies in our sector have been involved in activities that have caused losses to their
shareholders.

Tea Board has become a shadow of itself, with the whole organization having been gutted
by continuous budget cuts, to the point where its existence is a joke. From being a
formidable marketing presence in 20-25 countries, on a couple of occasions, it has had to
pay employee salaries by diverting funds from other allocations. Most support programs like
replanting subsidies, trade fair participation incentives etc have been closed down. Even
worse, committed and cleared subsidies worth hundreds of crores of rupees have been
rejected on the ground that the sanction letters were yet to be issued. One can only marvel
at this “Catch- 22” like scenario dreamt up by some overcompensating bureaucrat. Having
said that, a different perspective would be that annual tea exports are $900 million or less,
out of total Indian exports of $400 billion, so it is unrealistic to expect commerce secretaries
sitting in Delhi to pay any attention to the industry unless they are of the exceptional mettle
to recognize the social role that the industry plays by employing million-plus workers in the
least developed regions of India.

Tea Brokers operating out of Kolkata, Cochin, Coonoor, Coimbatore, Guwahati and Siliguri
used to play the role of “market maker” for the plantations. With less than 50% of produce

being offered through this channel, and buyers merrily flouting competition norms, the
brokers have also been whittled down to size, and are barely able to compete with
alternative primary sale channels. The migration of bulk tea offerings from auction to other
channels has drastically reduced competition in the auction, and an auction with restricted
competition is very detrimental for the seller. More so when despite thin offerings, auction
prices are used as a benchmark for pricing teas sold through alternate channels.

Blenders, packers, and retailers have, as the reader may have judged from the previous
paragraphs, made hay while they could. The entire surplus of this value chain seems to be
concentrated at its front end, which is not sustainable ultimately. Presently, this segment
continues to be making super profits, but the players are competing with each other, on
price, and then beating down supplier prices to maintain margins. Any policy that requires a
long-term compromise on quality and standards is bound to fail in the long run, and many
players who compromised heavily on quality have been faced with ever more challenging
business environments.

The consumer is also unhappy because, despite its availability at the plantation level, he
cannot drink that good cuppa at a reasonable price. The overall quality of tea consumed the
world over has declined, and India is no exception.
Without a focus on quality, the industry will continue to spiral downward. Therefore, we
must conclude by exhorting fellow planters to follow the quality mantra at each step of the
production of our green gold. Most other issues will fall into place. The Chief Minister and
his team in the current Assam cabinet know the industry well and hopefully, they will be
able to partner with the industry during the third century of its existence.

About Author
Prabhat Kamal Bezboruah is a renowned tea planter and was associated with Tea Board India from 1999-2004 as a Board Member, and again from 2016-2022 as its Chairman. He was also associated with Tea Research Association from 1999 until 2016 as a Member of its Council of Management, and from 2016-2022 as its Chairman. Views expressed are personal.

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Coffee: Craze, Culture, and Competition

By- BK JHA

With nearly three per cent of the global output in 2020, India is one of the top 10 coffee-
producing nations. Due to its excellent quality and high premium in the international
markets, Indian coffee is considered among the best in the world. Both Arabica and
Robusta varieties of coffee are produced in India. Because of its robust flavour, Robusta
coffee is primarily utilised to create different blends. With a 72 per cent production
share, Robusta is the most widely produced coffee. Indian Coffee Industry has now
been leveraging its strength. The emergence of a Coffee Culture in the country has
become the main growth driver of the industry. The availability, quality, variety, access,
and affordability also contribute significantly to the rise of a new-age culture. It is not
surprising to observe that consumers aged 20 to 40 years are the main growth drivers
of the Indian Coffee industry.

The Rise of Coffee Culture

The rise of Coffee culture in India is also attributed to the cascading effects of the
pandemic. Lakhs of students who were studying abroad returned home and they were
already exposed to Coffee Culture. It is well known that Cafes in developed countries or
in the western world are catering to a new generation who sit there for the black liquid,
free WiFi, and meetings both professional and social. Moreover, in new normal work-
from-home culture triggered more coffee consumption at home. Workplaces had
already adopted the Coffee Culture.

New-age coffee chains and packaged artisanal labels like Blue Tokai, Third Wave
Coffee, Dope Coffee, and Sleepy Owl have overrun the market. The obvious expansion
of India’s coffee culture served as the catalyst for several top domestic and international
businesses to enter the Indian market. Since Starbucks’ entry into the Indian market, the
industry has been flooded with new packaged coffee companies and cafés. Café Coffee
Day (CCD), Indian Coffee House, Barista Café, Costa Coffee, Brewberrys Café, Café
Mocha, Starbucks, and the Coffee Bean are the most prominent Coffee chains in India.

Competition: Domestic versus MNCs

Starbucks has more than 30,000 locations worldwide, making it by far the most well-
known coffee chain in the world. In 2012, Starbucks Corporation partnered with the Tata
Group to launch the first Starbucks outlet in Mumbai. Over the next few years, it
​​recorded rapid store expansion, adding more than 250 locations across 26 cities. As
Starbucks marks its tenth anniversary in India, the market has experienced a significant
transformation. Starbucks and other worldwide coffee corporations in general face direct
competition from the impressive rise of domestic roasters and coffee shops.

Well-known Indian brands like Third Wave Coffee and Hatti Kaapi have made it
apparent that they want to capture a bigger portion of the market. Even businesses with
no prior ties to coffee are now competing for a piece of the industry. For instance, the
large Indian QSR chain ‘Haldiram Bhujiawala’ just acquired the Coffee Bean and Tea
Leaf franchise in India and intends to increase the number of its locations there.
The global leaders in the Coffee sector have been eyeing India’s rapidly growing
market. Tim Hortons, a leading Canadian Coffee chain, recently unveiled its ambitious
plan to open 250–300 shops across India. Tim Hortons wants to achieve this target in
the next five years. Costa Coffee (UK) has also realized the future potential of the Indian
market and that leads to the extension of its franchise agreement with Devyani
International Limited in India.

The Emergence of a New Ecosystem

Coffee is booming in India as its consumption has gone up significantly. Coffee has
captured the imagination of young India. Even a rough estimate of the consumption of
coffee in the country is encouraging. It is estimated that in India daily consumption of
coffee is nearly two million cups. As young India now kickstart their day with coffee, this
emerging trend catalyzes the emergence of a new coffee ecosystem. Young India has
started patronizing Coffee in more than one way. Not only they have been developing a
great taste for it but also popularizing it through social media.
The current generation is all about buzzwords. Catch-words like all-natural, low-calorie,
organic, and vitamin-enhanced, among others, are what grab this generation’s interest.
A new ecosystem is in place and the coffee estate owners are opening up. They have
realized the power of cohesive collaboration, from the roasters to the equipment sellers.
The new coffee ecosystem has started yielding positive results and the industry now
reaps the benefits. A couple of years ago, stakeholders including estate owners worked
in silos.

New Initiatives

Apex body Coffee Board of India projects the domestic coffee sector growth at 5-8 per
cent in the next five years. The Coffee Board of India has announced that it is all set to
strengthen the domestic craze for pure coffee across the country. The Board strives to
expand its reach by launching four premium coffees under the ‘India Coffee’ brand as
well as two affordable coffees under the ‘Coffees of India’ brand on Amazon. According
to media reports, four premium coffees such as Coorg Arabica Coffee (GI), Chikmagalur
Arabica Coffee (GI), 100% Arabica coffee and a blend of Arabica and Robusta under
the ‘India Coffee’ brand would be launched by the Board. Under the ‘Coffees of India’
brand affordable coffees such as 100% Arabica and a blend of Arabica and Robusta will
be included. Cohesive collaboration is also visible in this initiative of the Board which
expects this agreement with Amazon would boost domestic coffee consumption as the
Board’s coffees are sourced from the best estates to suit the taste of millions of coffee
connoisseurs across the country. The southern region of India is where coffee is

primarily grown. The majority of India’s total coffee production, or around 70%, is
produced in Karnataka. Kerala, which produces just around 23% of all coffee, is the
second-largest producer overall, but it is far behind. India produces 6% of its coffee in
Tamil Nadu, the third-largest producer. The Nilgiri district, a significant Arabica growing
region, produces about half of Tamil Nadu’s coffee. The production is less in Orissa and
the northeastern regions. The rise of coffee culture would further boost consumption in
the country and such partnerships would make a premium range of coffees available
online.

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By- BK Jha for Tea & Coffee Trade Media

The Indian Tea industry has been significantly contributing to the economic growth of
the country. Increasing domestic, as well as overseas consumption, has triggered the
growth of industry and exports have a major share in it. Interestingly, Coffee, which was
a drink for just a small minority during the British period and even the post-
independence era, has now been registering a higher consumption growth compared to
tea. However, demand for green gold, as tea is usually referred to, has remained
consistent as tea is being consumed in over 90% of households as an integral part of
the daily routine. Tea is now getting tough competition from the coffee-the alternative
hot beverage in India- which has found popularity among the nation’s youth population
owing to mushrooming of coffee bars and organized cafe outlets. Overall, India is
witnessing the expansion of cafe and lounge culture where both tea and coffee have
become favourites of young India. ‘Chai par Charcha’ (Discussion over a Cuppa of Tea)
has become a common trend among students and professionals across the country.

Green Gold: Gaining Ground

Tea was introduced to India by the Britishers in the 19th century to counteract the
monopoly of Chinese production and was the preferred beverage of millions of Indians.
India has been one of the world’s biggest producers of tea ever since the first
plantations were established in the 1850s in the Himalayan foothills near Darjeeling.
Eastern India had more than 50 firms growing tea by 1860, and by 1928 it was the
world’s largest producer. Additionally, this resulted in a rise in domestic consumption. By
the end of the 1920s, the Indian market had increased from 10 million pounds in 1905 to
50 million pounds. Historically, more than 60% of India’s overall tea market was made
up of loose tea consumers. However, with increased branding activities by tea
companies, the number of choices available for consumers and consistently better
quality of the packet tea, the demand for packet tea has witnessed a rising trend over
the years.

The tea products can be generically divided into green tea, orthodox tea, and crush,
tear, and curl (CTC) tea. In India, most tea plantations are found in the rural highlands
and underdeveloped areas of the Northern, Eastern, and Southern states. Additionally,
some tea varietals, like Darjeeling tea, are solely grown in India and are in high demand
all over the world. Tea is traded and bought in India through private sales and auctions.

In six important cities—Calcutta, Guwahati, Siliguri, Cochin, Coonoor, and
Coimbatore—the majority of tea trading is done through auctions.

The Indian tea industry is one of the biggest in the world, employing over 20 lakh people
throughout over 13,000 estates. The Indian tea business contributes significantly to the
country’s foreign exchange earnings and substantial tax revenues. The reputation of
Indian tea as one of the greatest in the world is a result of its strong regional indicators,
major investments in tea processing facilities, continual innovations, expanded product
mix, and strategic market expansion.

According to Tea Board, India is one of the top tea-consuming countries in the world,
with domestic consumers accounting for 80% of the country’s tea production. Assam
and West Bengal make up the majority of the output in the northern region of India,
which will produce 83% of the nation’s annual tea in 2022, as per the official estimates.
Tamil Nadu, Kerala, and Karnataka are the top three tea-producing states in India,
accounting for the remaining 17% of the country’s total tea production. Overall, 1,344.4
million kg of tea was produced in India in FY 2021-22, as per Tea Board data.

Black Tea Dominates Exports

With 10% of global exports, India is one of the world’s top 5 tea exporting countries.
India’s tea exports were worth US$ 750.63 million in FY 2021–22. Approximately 96% of
all tea exports from India are black tea, making it the most popular kind. Regular tea,
green tea, herbal tea, masala tea, and lemon tea are further export variants. About
80%, 16%, and 3.5% of India’s total tea exports are black tea, normal tea, and green
tea, respectively. India, the second-largest producer of tea in the world, retains a
dominant position in the international export market. Among the leading nations
importing tea from India are China, Germany, the US, the UK, Russia, Iran, and the
United Arab Emirates. According to the Tea Board, India exported tea worth US$61.48
million to these nations in the first quarter of FY 2022–23.

New Trends

The emergence of globalization has resulted in more refined consumer tastes and
choices. As the range of goods accessible increased as a result of the removal of
international barriers, customers have begun to demand innovation and diversity in all
areas. Customers’ taste for upscale and sophisticated tea products clearly increased as
a result of globalization and the Internet serving as the primary drivers of creating new
tea trends. Thanks to expanding e-commerce and lowered international restrictions, a
tea enthusiast can now access a variety of teas. Physical stores had to close because
of the pandemic, while internet sales rose significantly. During the pandemic, a number
of direct-to-consumer (D2C) tea businesses emerged, and their “online-only” business
models experienced rapid expansion.

Road Ahead

The broad consumption of tea in India across all socioeconomic strata is the industry’s
main driving force. The industry’s expansion is also being accelerated by the quick
economic development of the nation and the rising middle-class disposable income.
The rapid growth of the Indian tea industry is also being aided by the increase in
demand for packaged tea in urban and rural areas, where there is less risk of
adulteration and easier storage.

The expansion of cafes and lounges offering a variety of beverages is expected to fuel
the tea industry’s growth over the next years. The industry’s distribution networks, which
include neighbourhood “Kirana” stores, hyper, and supermarkets, will also help it
flourish. Because of busier lifestyles and a growing labour force, the ready-to-deliver
(RTD) market has the potential to grow favourably as consumers especially tech-savvy
youth look for more convenient foods and drinks. Future market growth will also be
fueled by an increase in packaging and flavour improvements.

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Nepal tea has been loved and appreciated by millions of people across the world. The
Himalayan country has been producing a distinct class quality tea which is being enjoyed by tea
lovers across the world. Until 2017 not many people in Europe and the Americas were aware of
Nepal producing tea. The 2017 closure of the Darjeeling tea gardens due to the political strike
enhanced the prospects of Nepal tea in the global market scenario. The demand for Nepal tea
suddenly grew in the second half of 2017. Tea importers in western countries were asking for
Nepal teas. The tea exporters from India started fulfilling their importers’ demands by exporting
Nepal tea. Interestingly, much more quantity of Nepal tea is exported worldwide from India than
Nepal every year. This is because Nepal tea is blended with Darjeeling tea in India and
exported as Darjeeling tea.

Nepal Tea versus Darjeeling Tea

There are many similarities when one compares Nepal tea to Darjeeling tea. The majority of the
tea garden labourers and workers who work in Darjeeling tea plantations are of Nepalese origin.
The same applies to Nepal high grown tea gardens too. The geography, climatic conditions and
the style of working of the staff, food habits, and festivals are the same across tea gardens in
Darjeeling and Nepal. The green leaf planted in Darjeeling tea gardens though differs from the
green leaf planted in Nepal tea gardens. Darjeeling has more of the Chinese variety of green
leaf whereas Nepal has more of the clonal variety of green leaf.

In Nepal, there are primarily two types of teas which are produced. The first is the traditional
CTC variety of tea which is widely consumed in the Nepal domestic market and also major
quantity is exported mainly to India and CIS countries. The second variety of tea is the high-
grown high-quality orthodox tea which is most favoured in Europe. Germany, France and The
Czech republic are the largest buyers of the Orthodox varieties of teas from Nepal.

Tea Growers and Mini Factories

The Himalayan country currently produces almost all types of teas that are demanded by
modern-day tea retailers and tea drinkers. Many of the high-grown tea in Nepal is produced in
the modern small tea factories owned by the tea farmers themselves. Their small mini tea
factories are often located in the backyard of their own homes and the green leaf which goes
into making the speciality teas comes from their own small tea gardens. The end result is high-
quality organic speciality tea which fetches a good price that ultimately brings a smile to the
farmers’ faces. This model of tea production has been in China for a very long period. This
model helps the tea farmer to be self-dependent.

The Gorkha Tea: Favourite of Germany

But, currently, the Nepal tea industry faces the challenge of producing high-quality certified
organic teas. There are a lot of factories under certification but one factory which has truly made an achievement in organic Nepal tea production is Gorkha Tea from Fikkal. The stylish and
experienced young owner of Gorkha Tea – Udaya Chapagain or just Uday uncle, as he is
fondly called- is highly experienced in organic tea production. His entire harvest is the most
sought-after by Tee Gschwendner – the renowned tea retailer in Germany annually. The teas,
produced by his trusted tea curator Buddhibal Rai, are a morning favourite with tea drinkers in
Germany, especially around the Hamburg area. His tea is also dubbed as the light and bright
tea in Germany because of the sunrise colour and brisk taste that imparts to the Sunderpani
cuppa. Udaya Chapagain is truly one of the doyens of the organic Nepal tea industry and has
helped promote Nepal tea and the farmers to greater heights.

The large-sized tea factories play a significant role in the development of Nepal’s tea industry as
far as their exports to India are concerned. The large-sized orthodox tea factories in Nepal help
to lower the costs of orthodox tea in the Kolkata market by producing tea in bulk and thereby
achieving scalability.

Dominance of Nepal Orthodox Tea

Orthodox tea is important for the Indian market as the price of Darjeeling tea is always
significantly higher due to its high production costs. Antu Valley tea (ITPPL) is one such
orthodox tea brand in Nepal which produces about a million kilos annually through its three
manufacturing units in the Himalayas of Nepal. They are one of the oldest known tea brands
marketing Nepal orthodox tea in the Indian and overseas markets and are preferred by tea
drinkers especially in West Bengal in India and Germany in Western Europe. Antu Valley Teas
recently celebrated their Silver Jubilee. The event marked the opening and production of tea by
purchasing green leaves from small farmers out of their first unit in the Antu Village of the Ilam
district in Nepal. In the words of Ashok Murarka – the founder of Antu Valley Teas – “Tea
farmers are just like my own family members and I have my own small responsibility to help
them achieve their dreams and make it big for them too.” He also agrees with the fact that it is
the sweat and toil of the hard-working Nepali tea farmers that has led to Nepal tea becoming
popular worldwide.

Kolkata in India and other small towns in West Bengal are the biggest and only markets for
Nepal orthodox tea. Even for Darjeeling tea, the largest market domestically would undoubtedly
be West Bengal. This is because Darjeeling tea was largely available to the public since the
British era. The people in West Bengal have been used to drinking Darjeeling tea and Nepal
orthodox tea because of their unique flavour and taste. The number in other states of India is
almost nil because of very less awareness of quality high-grown teas. Tea drinkers in other
states of India love their CTC teas as much as tea drinkers in West Bengal prefer their high-
grown Darjeeling cup or Nepal Orthodox.

(PS: Tea & Coffee Trade Media is not responsible for any claims made by any of the authors.)

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As of now, members of the UBKPCCS have reached 6,400 along with 27 Self Help Groups (SHGs) or
Farmers’ Producers’ Organizations (FPOs). The Samity has been Our Association has been facilitating all
kinds of farming support to the farmers. It makes growers aware of the policies, programmes and
benefits that are being offered by the Tea Board of India, the State Government and the Central
Government.

Training is the most important activity UBKPCCS undertakes time and again. It has been conducting
Training programmes for Summer, Rainy, and Winter seasons for the Samity Members and impart
valuable knowledge with regard to Cultivation management. Training Programmes are conducted in
association with Tea Board and Tea Research Association.

“We are closely working for better pricing of the green leaf tea. UBKPCCS is a member of the District
Leaf Monitoring Committee in different districts of West Bengal. Moreover, we are helping growers both
as a Group or individuals to avail of different subsidies under various Schemes of the Government,” says
Mr Ganguli.

Among different groups, two of our Groups are running the Tea Manufacturing Unit with the help Tea
Board and UBKPCCS. Tea Manufacturing Units include “Purboharomati Small Tea Growers’ Welfare
Society” which produces 3.5 lakh Metric Tons of CTC TEA annually with the Brand name “Om Bari” Tea.
Another Group’s Unit is known as “Bhotpatti Uttaryanan Prantik Small Tea Grower’s Welfare Society.”
These units are also taking a big leap in tea processing.

To further empower growers, UBKPCCS also frequently organizes Tea Tours across the country for its
members and groups. The Samity presents an inspiring operational module that takes care of each
stakeholder of the tea society of the Region.

The post Uttarbanga Khudra Prantik Cha Chasi Samity (UBKPCCS): Empowering Tea Society appeared first on Tea & Coffee Trade Media.

 

Panduranga Coffee – The Creator of a Captivating Coffee Culture

 

Special Story by BK Jha for Tea & Coffee Trade Media

 

Known for redefining the Taste, and Texture of Indian Coffee, Karnataka’s Chikmagalur-based
Panduranga Coffee is the cumulative achievement of five generations of coffee lovers and the
product of a land so rich and lush that it is unmatched by any other place on Earth. With a
tagline- ‘Rich in History, Rich in Flavour’ Pandurang Coffee has become a market leader. In an
exclusive interview with Tea and Coffee Media, Deepak Panduranga takes us on the Journey so
far and explains every dimension of the Indian Coffee Industry with reference to his
extraordinary brand.

 

Tea & Coffee Trade Media : How do you see 84 years of the Journey of Panduranga Coffee? What are the main specialities?

Deepak Panduranga : We are in the industry since 1938. My grandfather named it -Panduranga coffee when my dad’s
brother was born. During those days, they were selling Coffee in pounds and also in Rupee and
Aana. Established in 1938, we are now almost 84 years old. In India, we are the only people
manufacturing both Coffee and also Chicory with German machines. We own the oldest roaster
in India. We imported it in 1918. There is no one in India manufacturing chicory with German
machines and we are the only manufacturer of Chicory with German machines. With a rich
history, I along with my two brothers as Partners are making all efforts with robust R&D and
innovations to take the company to the next level.

 

Tea & Coffee Trade Media : Has the habit of drinking Coffee changed in India over the years?

Deepak Panduranga : In India, people have a habit of drinking Coffee blended with Chicory. It is interesting to note that
for Chicory, seeds come from France, it is grown in Gujarat and is mainly consumed in South
India. When you add Chicory to Coffee, it becomes Filter Coffee. Moreover, in India, people
drink it with milk. As we need more viscosity in the cup and we need more flavours. In the olden
days, we were sourcing chicory from others. Unfortunately, there was inconsistency in the
supply and the quality was also not the same as what we wanted. Indian machines would not
give a high-quality product because when you roast chicory its thinner parts will become like
charcoal as the root will be in different shapes and sizes. But German machines overcome this
limitation and give the finished chicory’s inner and outer core will be in the same colour and
texture when roasted.

Tea & Coffee Trade Media : So, what is Paduranga Coffee’s production capacity?

Deepak Panduranga : For chicory roasting, we have the capacity to roast 700 kg per hour and in India, we have the
largest roasters. That is one of the special things for us and every day we have the capacity of
roasting 50,000 kg of coffee. With these high-capacity roasters, we produce a very high quantity
of Coffee as per demand. Moreover, we own the largest granulator in India. It literally cuts the
beans and does not crush them. So, all the flavours that are present in the coffee beans will be
retained. In the normal conventional grinders, due to heat and friction, all the flavours get
evaporated in the grinder itself. Hence, our high-tech German-imported granulators cut the
beans in such a manner that flavours are retained. It happens because the temperature won’t
go beyond room temperature. Interestingly, the machine we imported in 1938 is still working and
giving the best results. We have modern machines-roasters and granulators of different
capacities as well, ranging from 100 grams to 2000 kg per batch.

 

Tea & Coffee Trade Media : How do you market your distinct high-quality coffee? What is your marketing strategy?

Deepak Panduranga : We have dealers all over India and we send products to the dealers. They supply it to retailers.
But, our main forte is B2B and it is essentially our dealers who are into B2C. Now, we have an
online store also, so anyone can buy from there. For robust sales of the wide range of our
products, we are focusing on emerging trends. E-Commerce offers a very strong platform for
sales today.

Venkatesh P S of Panduranga Coffee, Chikmagalur

 

Tea & Coffee Trade Media : You talked about a wide range of products. What are key offerings?

Deepak Panduranga : We have different varieties of Coffee for both domestic and international markets. We have a
brand ‘1938’ and it is our signature brand. Another attractive blend is ‘Made in Chikmagalur’ and
the third exotic blend is known as ‘Panduranga Peaberry.’ Here, in one fruit there will be only
one seed which gives a different flavour. Peaberry is sour in flavour and it is mainly liked by
people of Tamil Nadu. We have one more blend called ‘Grand Aroma’ which is actually
balanced coffee. Normally, five flavours- Caramel, Chocolate, Vanilla, Nuts, and Butter- will
inherently be present in coffee beans. In ‘Grand Aroma’ everything is balanced. It is the
favourite Coffee of Karnataka people. ‘Aroma Gold’ is yet another popular blend and it has 30%
Chicory and is mainly consumed by people in Kerala, Andhra Pradesh, and Telangana. People
from these states want stronger, viscous, and slightly bitter coffee. ‘Aroma Gold’ has more
caramel notes in the cup and it is stronger, viscous and bitter as well.

 

Tea & Coffee Trade Media : There is a buzz around ‘Wild Coffee,’ a unique offering from Panduranga’s Coffee? What is so unique and exotic about it?

Deepak Panduranga : We have recently launched a few more blends. One of them is known as ‘Wild Coffee.’ It
comes from the periphery estates of the forests of Chikmagalur. In these estates, tigers and all
other wild animals roam around. Because they will not be knowing the boundaries so they enter
into all these estates also. These wild animals indicate that we have ecologically balanced
Coffee estates. Therefore, the nutritional value of coffee procured from these estates is very
high and that makes “Wild Coffee’ unique and exotic.
Another interesting and exotic blend of ours is ‘Monkey Coffee.’ There are hundreds of monkeys
in these estates. Interestingly, a monkey chooses the right coffee fruits. Beans coming with a
monkey’s touch make them exotic in taste. We wash these beans, which are picked up from the
floors, are roasted to make this coffee. ‘Agaraharam Coffee’ is yet another unique offering from
us, especially for the priests’ fraternity and families of Tamil Nadu. These people are very
specific about their coffee. ‘Agaraharam’ is blended with cells of different deposits of chicory.
The roaster is different. So, this filter coffee is among our premium blends.

Tea & Coffee Trade Media : Does the ongoing geopolitical situation affect your export? How do you rate your overall growth rate?

Deepak Panduranga : Not much. For example, we were exporting our coffee to Ukraine but to the Russia-Ukraine
conflict, we stopped exporting there because we cannot take the risk. However, we are
exporting our products to the Americas, Europe and the Middle East. We are sending it there
even now. We are exporting coffee to many countries in the Middle East and the Americas. We
have branches there and we are also associated with Amazon in the US and the UK and
anyone can buy from Amazon there. We export both normal and premium blends. Not only
export but also import some Coffee from Colombia and Brazil.

Regarding growth, I would say if your coffee is good, it always goes up. When there is no
money, people’s monthly consumption will be high because they would really be having lots of
worries. We witnessed that during the COVID-19 lockdown coffee consumption went up
tremendously as people were confined in their homes and had more and more cups of coffee.
Overall, we are witnessing robust growth.

Tea & Coffee Trade Media : Does coffee come with some health benefits?

Deepak Panduranga : First of all, coffee may help in weight loss. We have one blend known as ‘Weight Loss Coffee’-
the green bean powder. That green bean contains a chemical called chromogenic acid which is
the main reason for weight loss. Consumer needs to boil this coffee for 15 minutes and drink it
empty stomach. This helps in losing weight.
Along with coffee, we are offering some tea brands also and these include Punjabi Masala Chai
(Tea), Kerala Cotton Chai, Jasmine Chai, Bombay Cutting Chai and Kashmiri Kawaha.

 

Tea & Coffee Trade Media : What would be the Indian Coffee Industry’s size?

Deepak Panduranga : It is tough to comment on that, but the coffee production is almost four and a half lakh
tons for sure. Tons of coffee is produced in India. One and a half lakh Indian production is
meant for domestic consumption and the remaining three lakh tons are exported. This figure
sounds very authentic as the prices have gone very high recently. It’s almost doubled from last
August. Last year in August it was Rs 9000 per 32 kg bundle and now it is Rs 17,000. Mind you,
coffee prices are always determined internationally with the US and UK Commodities markets.

 

Tea & Coffee Trade Media : What is the reason for such a price hike?

Deepak Panduranga : There was a frost in Brazil. So, Brazil is the largest producer of coffee in the world. Due to frost
there, major estates were burnt. And it takes almost five to six years to regain production
capabilities. When this happened, there was a huge demand-supply gap worldwide. Beans and
coffee-producing countries started supplying their products at a higher rate.

The post Panduranga Coffee – The Creator of a Captivating Coffee Culture appeared first on Tea & Coffee Trade Media.