Credit Delivery System to Tea Industry

Abstract

The story of Indian Tea dates back to early nineteenth century. Since then, India is one of the leading producers of the finest quality tea having regional variation in texture and flavour. In the year 2020, the number of gardens including registered small growers was around 1,50,000 with an annual production of 1300 million kg. Today, the bulk of the tea produced is sold through Auction Centres in India and also to indigenous private buyers. Tea tourism and online retail to reach out to discerning customers are the two emerging areas of operation with immense possibilities. Financing of such activities along with strengthening of the existing credit delivery system through cash budget mechanism; bankers should obtain professional help of the CMAs to ensure proper end use of disbursed fund and timely repayment of old cash credit and Term Loan outstanding.