Problems and Prospects of Tea Plantation Industry in Kerala

The overall objective of the study is to examine the problems and prospects of the tea on industry in Kerala. The specific objectives are to trace the historical evolution of the tea plantation industry in India with special reference to Kerala and to study the performance of tea plantation industry in Kerala. In order to analyse the growth performance of tea plantation industry in Kerala in a comparative perspective, growth rates for the neighbouring states of Karnataka and Tamilnadu are estimated along with the National, South Indian and North Indian estimates. Tea plantation industry is a labour intensive activity. Productivity has been low primarily because of the over aging. In all the factories visited only Black tea is produced. In factories outmoded machines which installed years ago is still used which will increase the cost of production. The major problem is high cost of production and low price realization. The workers are found to be not satisfied with their working conditions- long journey to work place, absence of resting places, latrine facilities etc. and also the problems arising from dust in the factory. At a macro level the tea plantation industry has been facing the adverse impacts of globalisation and trade liberalization. There is only one solution to this problem that is to improve the competitiveness in production of raw leaf and manufacturing of tea. Government has a very important role with specification of strict quality control

The economics of tea plantations in South India

Thc tea industry in lndia is going through a period of crisis. The crisis in brought about mainly by cost caculation and declining or stagnant prices. The impact of the present crisis is felt most by the owners of tea plantations in Kcrala . The present study assumes significance due to the fact that the critic which already affected Keralas tea industry is now threatening to extend to other tea-growing areas in south India. Today, ensuring a favourablc price to the producers via-a-via possibilities or reducing the cost of production through increase in productivity of land and labour are the main considerations. The main purpose of the study is to analyse the factors behind the crisis as well as exploring immediate and long-term measures for the sustained growth of the industry.