TEA INDUSTRY IN SYLHET DIVISION OF

BANGLADESH: A SYNOPSIS OF IT’S PROBLEMS,

PROSPECTS AND EXPORT SCENARIO

Department of Business Administration

SHAHJALAL UNIVERSITY OF SCIENCE & TECHNOLOGY,
SYLHET
 SEMINAR PAPER
ON
“TEA INDUSTRY IN SYLHET DIVISION OF BANGLADESH: A
SYNOPSIS OF IT’S PROBLEMS, PROSPECTS AND EXPORT
SCENARIO”

Course Title: Seminar and Viva Voce

Course Code: BUS 200

SUBMITTED TO: CHAIRMAN

2nd Year 2nd Semester Examination Committee
Department of Business Administration
Shahjalal University of Science &Technology, Sylhet

SUPERVISED BY:
Dr. Mosaddak Ahmed Chowdhury
Professor
Department Head
Department of Business Administration
Shahjalal University of Science & Technology, Sylhet

SUBMITTED BY:
Name Registration No.
SIAM BIN NOOR 2017731025
MRINMOY CHAKRABORTI 2017731028
MONISH HARENDRA ROY 2017731030
AMINA AKHTER BHUIYAN 2017731041
MD KAMRUL HASAN SOHAN 2017731045

2ND YEAR 2ND SEMESTER

Department of Business Administration
Shahjalal University of Science &Technology, Sylhet

ii
 Letter of Submission

26th January 2020

To
Dr. Mosaddak Ahmed Chowdhury
Professor
Department Head
Department of Business Administration
Shahjalal University of Science & Technology,
Sylhet, Bangladesh.

Subject: Submission of the seminar paper.

Dear Sir,

We were assigned to prepare a seminar paper under your direct supervision on “TEA INDUSTRY
IN SYLHET DIVISION OF BANGLADESH: A SYNOPSIS OF IT’S PROBLEMS,
PROSPECTS AND EXPORT SCENARIO” As the study part of the 2-credit course BAN-200.

We have tried to collect all possible information and make this paper acceptable but still there
can be some mistakes. We assure you that we did not take any unfair mean to prepare the paper.
Finally, we would like to request you to observe and accept our paper and forward us to present
it before the chairman of examination committee.

Thank you very much for your time and consideration.

Sincerely yours,

Name Reg. No Signature

SIAM BIN NOOR 2017731025
MRINMOY CHAKRABORTY 2017731028
MONISH HARENDRA ROY 2017731030
AMINA AKHTER BHUIYAN 2017731041
MD KAMRUL HASAN SOHAN 2017731045

2nd Year 2nd Semester

Shahjalal University of Science & Technology

Sylhet
iii
 Acknowledgement

By the grace of Almighty we have successfully completed the research on “TEA INDUSTRY
IN SYLHET DIVISION OF BANGLADESH: A SYNOPSIS OF IT’S PROBLEMS,
PROSPECTS AND EXPORT SCENARIO”.

During our research we interviewed some Managers of Tea Gardens & Tea Estates who helped
us to complete this research work. To name only a few of them would not be justified, instead of
that we express our sincere gratefulness to all of them.

We want to express a special gratitude from our core of heart to our research supervisor Sir Dr.
Mosaddak Ahmed Chowdhury (Professor, Department Head, Department of Business
Administration, Shahjalal University of Science and Technology, Sylhet) for his valuable
suggestions and supports, which gave us the spirit to work. The help of our supervisor was the
key contribution preparing our seminar paper.

Our special thanks to all of them who helped us and inspired us.

Name Reg. No Signature

SIAM BIN NOOR 2017731025

MRINMOY CHAKRABORTI 2017731028

MONISH HARENDRA ROY 2017731030

AMINA AKHTER BHUIYAN 2017731041

MD KAMRUL HASAN SOHAN 2017731045

iv
Executive Summary
Tea is one of the most popular refreshment drinks of Bangladesh. In Bangladesh tea is produced
in a great quantity and at a time it was also exported in other countries. But now because of the
increase of internal consumption the export rate has been dropped.

The study investigates the problems faced by tea industries of Bangladesh on the context of Sylhet
Division. Alongside the problems the study also gives probable solution of those problems.

The real scenario of the tea estates has also been analyzed. The data was collected from the
Bangladesh Tea Research Institute (BTRI) and Export Promotion Bureau (EPB). Also, we visited
some tea industries to interview some factory managers. The study was done by investigating
both primary and secondary data.

Through the study it was found that, tea industries are suffering from lack of capital, lack of
modern machineries, lack of skilled labor and lack of government support mainly. Climate change
is also playing a harsh role. Though the production of tea is increasing, it’s not sufficient enough
even for the domestic consumers. The researchers concluded on a note that, government support
and adaptation to new technologies and method can change the whole scenario sooner or later.
Moreover, some factory managers think that if the tea cultivable land can be increased then the
production can be increased and that will also create job opportunities for some.

Tea is the second main export-oriented cash crop of Bangladesh. Tea is mostly cultivated in the
hill tracks of northeast portion of Bangladesh. Moderate height and slope of the hill tracks as well
as heavy rain fall make this area suitable for production of premium quality tea in Bangladesh.
Besides, a considerable quantity of tea is cultivated in the hill tracks of northwest and southeast
portion of Bangladesh. Presently 53 million kg (On average) of tea is being produced in
115,820.33 hectare of land under 163 tea estates. Tea sector contributes about 1% of the total
GDP in Bangladesh. This sector occupies approximately 0.2 million people directly and indirectly
which is about 4.4% of the country's total employment.

v
 TABLE OF CONTENTS

CHAPTERS PAGE NO.

Chapter One: Introduction 01-07
1.1 Introduction 02
1.2 Literature Review 03-05
1.3 Objectives of the study 06
1.4 Methodology of the study 06-07
1.5 Limitations of the study 07

Chapter Two: Activities & Overview 08-18

2.1 Overview of Tea Industry in Bangladesh 09-11
2.2 Importance of Tea Industry in Bangladesh 12
2.3 Tea Industry in Sylhet Division of Bangladesh 13-16
2.4 Tea Export scenario of Bangladesh 17
2.5 “Vision 2021” and Road Map: Bangladesh Tea
18
Industry

Chapter Three: Methods of the Study 19-20

Chapter Four: Data Collection and Analysis 21-26

4.1 Tea Industry in Sylhet 22
4.2 Tea Estates & Gardens in Sylhet Division 23
4.3 Tea Production & Internal Consumption 24-25
4.4 Tea Export Data 26

Chapter Five: Problems & Prospects of Small

27-31
Enterprise in Sylhet Division
5.1 Problems faced by Tea industries in Sylhet 28-29
Division
5.2 Prospects of Tea Industries in Sylhet Division 30-31

vi
Chapter Six: Recommendation & Conclusion 32-34
6.1 Findings 33
6.2 Recommendation 34

Conclusion 35

Appendix-A
36
Reference

vii
Chapter One: Introduction

1.1 Introduction

1.2 Literature Review

1.3 Objectives of the study

1.4 Methodology of the study

1.5 Limitations of the study

1
1.1 Introduction:

Tea is an aromatic beverage commonly prepared by pouring hot or boiling water over processed
black leaves. After water, it is the most widely consumed drink in the world.

The history of tea garden in Bangladesh started in 1840 when an eminent tea garden established
in the slope of the slants of the Chittagong, but Mulnicharra in Sylhet is the first commercial tea
garden of Bangladesh established in 1854. Bangladesh is now one of the large teas producing
country of the world. This country has 172 commercial tea gardens and some of them are world
famous for production of quality tea. This industry employs more than 4 lacs of labors and
produces 3 percent of the total tea of the world. It contributes 1 percent to the national GDP.

The area Nearly 300,000 workers, of which more than 50% are women, are employed on the tea
estates. The industry accounts for 3% of global tea production and employs more than 4 million
people. Tea is the second largest export oriented cash crop of Bangladesh, following jute. The
industry accounts for 1% of national GDP.

The sharp increase in internal consumption of tea with tight supply has resulted in an
extraordinary demand for tea in Bangladesh. At its present rate of increase population will be
about 182.31 million and domestic requirement of tea will be about 84.06 million kg (461
grams/per head) and production will be 73.63 million kg by 2025.

Due to increased tea drinking habit, population growth and rapid urbanization domestic
consumption has been increasing at about @ 4.10% per annum. The rate of export has been
decreasing @ 8.92% per annum due to lack of exportable surplus caused by a slow rate increase
in production, i.e. @ 1.03% per annum, for the last 10 years (from 2002 to 2011). For instance,
in the 1980s (1980-1989) Bangladesh exported on an average 68%, in the 1990s (1990-1999)
50%, in the 2000s (from 2000 up to 2009) 19% and in the 2010s (2010-2011) 2% of its produce.
If these trends continue, export will soon shrink to standstill and even the country will a net
importer of tea to meet local demand by 2016

2
1.2 Literature Review:

 M.R. Islam, M. Iqbal, K.G. Quddus and M. Y. Ali ;( 2005) the researchers of Shahjalal
University of Science and Technology conducted a research upon the present status and
future needs of tea industry in Bangladesh. The objective of their study was to find out the
present scenario of the tea industry and to recommend some measures. They find out that,
the activities of tea industry fall into two categories: production of tea and manufacturing &
marketing of tea. Through their research, they concluded that, low productivity, poor quality
and higher cost of production compared to the dividend in price for tea is the crux of the
problems of tea industry.

 Dhaka tribune (2018) the online news site claims in one of their report that, value addition
can be a bright future for the tea industry of Bangladesh. According to the report, in FY
2016-17, Bangladesh earned $4.7 million by exporting value added tea, which was $1.83
million in the previous fiscal. The demand of organic and value-added tea is increasing
around the world, which opens a new avenue for Bangladeshi producers. European Union,
US, Middle East and China are the potential markets for Bangladesh. Though the sector has
enormous potential to grow in local and foreign markets, it faces numerous challenges. To
retain local consumers and capture export markets, Bangladesh has to increase production
capacity.

 Ukessays.com published a report on the tea Industries of Bangladesh. The focus of the report
is the types of ownership of the tea estates of Bangladesh. According to the report, at present
in Bangladesh there are 167 tea gardens. Five types of companies are involved in tea
cultivation in Bangladesh. Sterling Company, National Tea Company, Bangladesh Tea
Board, Private Ltd. Company and Proprietary, owned by Bangladeshi nationals. The report
also states that, some new countries are trying to cultivate tea, which will be a threat to the
countries like Bangladesh. So, it is necessary for Bangladesh to keep looking on the new
competitor. It is also necessary for Bangladesh to train the all employees of the industry with
a scientific way, which can boost the production. The companies also need to look for the
new technology. They also need to use the best machine for production. They also need to
use the computer-based technology to keep the data and all the required information.

3
 Reportgallery.blogspot.com (2012) published a report analyzing the tea industry of
Bangladesh. The report reflects an overall scenario of production, manufacturing and
marketing strategy of the tea estates. According to the report, domestic consumption rate of
tea is increasing much faster than the rate of increase in production which leads to gradual
shrinking of exportable surplus. The report also states that the rate of increase in the
production is very low due to technological, financial, and management problems. The report
suggests cultivating the best variety of tea to gain higher value.

 The Prothom Alo (2018), published a report focusing upon the rise of the price of tea in
Bangladesh. According to the report, tea prices in Bangladesh rose at the weekly auction for
the eighth time in a row on strong demand for quality leaf despite a higher volume on offer
.Bangladeshi tea fetched an average of 257.73 Tk ($2.7) per kg in the port city of Chittagong
on 17th July, 1018, compared with Tk 251.20 at the previous sale. Though there is a rise in
demand, Bangladesh’s tea production dropped to nearly 79 million kg in 2017 from a record
85 million kg the previous year, which officials attributed to excessive rainfall. Also,
Bangladesh was the world’s fifth-largest tea exporter in the 1990s but is now a net importer
as the surge in domestic consumption is in line with economic growth.

 Md. Yousuf, Kamal and Md. Nazim Uddin Bhuiyan (2004) analyzed the overall scenario of
the problems, prospects and export potentialities of the tea industry of Bangladesh. The
objective of their study was to know the proper conditions of productions and exports of tea
industry of Bangladesh. According to them oligopolistic control of tea market is one of the
major obstacles that hinders the expansion of tea industry. Because of auction system,
highest bidder gets the bid and unfortunately sometimes it doesn’t even cover the production
cost. As the producer doesn’t have any control over the selling price. They recommend that,
the producers should be more involve in setting the selling price.

 The Daily Star (2017) published a report on Bangladesh losing edge in tea exports. Taking
the current rate of domestic consumption into consideration, the report stated that
Bangladesh will need to import around 20 million kg of tea to meet internal demand.
According to the report, the vice-chairman of Tea Traders Association of Bangladesh stated
that Bangladesh is also lagging in hectare-wise production of tea, compared to major tea
producing and exporting countries such as Sri Lanka, India, China and Kenya. The report
also highlighted that the local tea gardens on an average produce 1200 to 1250 kg per hectare,
some a maximum of 2500 kg and a few selective ones 3000 kg and more. On the other hand,

4
 per hectare production ranges from 3000 to 3500 kg or more in Sri Lanka, India and Kenya.
They concluded on a note that the country failed to make any great leap in hectare-wise
production in the last 70 years since the 1947 partition.

 Shykh Seraj (2015) conducted a research on the impact of import on the growth of the tea
estates of northern Bangladesh. The report focuses on the fact that once Bangladesh was
world’s 5th tea exporter, but now it imports. He stated that the importers importing tea with
the excuse of domestically produced low quality tea and increasing rate of domestic demand.
According to him Bangladesh has the capability of producing quality tea by using modern
technologies and skilled labor. He also highlighted that, few years ago import duty on tea
was 92% on the cost price. Over this, there was a supplementary duty of about 20%. All of
a sudden, government had taken off the 20% duty. Later on, the import duty came down to
72%. On the contrary In India, the duty is 110% and in Sri Lanka, its 130%. That is how
high imports are ruining local tea cultivations. He concluded on a note that, the commercial
future of Bangladeshi tea is slowly being driven more and more by foreign forces, such as
imports. He recommends that local competitiveness needs to be ensured to shift the power
back to local producers. He thinks only the government can now save the tea industry by
encouraging the domestic producers

 Pradipta Khisa and M. Iqbal (2001) conducted a research focused on the problems and
prospects of tea manufacturing in Bangladesh. Through their studies they identified that lack
of infrastructure, modern machineries, have direct influence upon lowering the quality of
tea. And low quality remains unsold. As a result, even the cost of production is not always
covered. They recommended that, production cost variables are many, e.g.—wages of
laborer, fertilizer, pesticide, management and staff salary, electricity, gas, depreciation of
machinery, packaging material, storage & dispatch cost, etc. So, it is a tough job to reduce
production cost. They talked about 2 measures--- quality and yield. If quality tea is produced,
with a change in conventional yield seeding process, the situation may improve

5
1.3 Objectives of the study:
The main objective of the study is to identify the factors those are affecting the tea industries of
Bangladesh on context of Sylhet Division and to solve those problems

1.3.1 Primary Objective:

1. To know about the problems faced by the Tea Industry of Sylhet Division in
Bangladesh.
2. To find out the probable solutions of the problems faced by the Tea Industry in
Sylhet Division of Bangladesh.

1.3.2 Secondary Objective:

1. To review the present scenario of Tea Industry in Bangladesh on basis of Sylhet

Division.
2. To review the roles of Tea Industry in the national economy on basis of Sylhet
Division.
3. To review the export of tea.

1.4 Methodology of the study:

I. Type of research:
The study puts its primary focus to have an overview about the problems and prospects of
Tea Industry in Sylhet division of Bangladesh. In this survey the quantitative information
was collected from different tea industries located in Sylhet division and secondary data
from BTRI and EPB.
II. Population and Sample:

 Population:
Since this study is related to the problems and prospects of Tea Industries in Sylhet
division, the total population of this study was all tea industries located in Sylhet
division.
 Sample:
Sample data was collected through visiting tea industries and interviewing factory
managers and some were from the Tea company offices located in Sylhet city.

6
 Moreover, secondary data was collected from EPB & BTRI and some from tea related
documents and newspaper.

III. Data collection methods:

 Primary data collection:

The primary had come by collecting the real information from small tea factory
managers and executive members, on the other side in this survey the structured
questionnaires is also used. In this study tea factory managers and executives provided
the real information.

 Secondary data collection:

This source of data had come from different types of online journal, internet, many
types of books, newspaper and other sources like EPB and BTRI.

 Questionnaires design:
For getting primary data, questionnaires are very important. In this survey different
types of questionnaires (close ended) has been used.

IV. Analysis of data and interpretation of findings:

This data is collected through various methods discussed above were qualitative by using
different statistical tools of SPSS. The relationship between varies variable was analyzed.

1.5 Limitations of the study:

There was some limitation during this study. The constraints that limit fulfillment and total
achievement of the research objective are:
1. It was very difficult to get the actual information. They did not give us exact information
for maintaining their secrecy.
2. Sufficient records and publications were not available. The constraints narrowed the scope
of real analysis.
3. Sufficient information was not attainable because officers were very busy with their day-
to-day work; they could hardly provide enough time.
4. Lack of experience was one of main issues.
5. Last but not least lack of time has also limited the scope for the research work.

Though we have faced with above limitations, we have tried our level best and invest our full
talent and new ideas for substantiating the task successfully.

7
Chapter Two: Activities & Overview

2.1 Overview of Tea Industry in Bangladesh

2.2 Importance of Tea Industry in Bangladesh

2.3 Tea Industry in Sylhet Division of Bangladesh

2.4 Tea Export Scenario of Bangladesh

8
2.1 Overview of Tea Industry in Bangladesh:
According to BTRI, there are 166 tea estates in Bangladesh that are in the North-Eastern region
of Bangladesh. Most of the owners are foreign companies. All the tea estates are managed by five
different categories of management:

1. National Tea Company

2. Sterling Company
3. Proprietorship Companies
4. Bangladesh Private Limited Companies
5. Bangladesh Tea Board

District No of Tea States

Moulvibazar 91
Habiganj 25
Sylhet 19
Chittagong 21
Thakurgaon 01
Panchagarh 08
Rangamati 02
Total 167

There are three categories of tea estates based on their production levels: Category A, Category
B and Category C. Most productive estates are the Category A which is mostly owned by British
Companies.

Details of Tea Estates in Bangladesh

Number of Tea Estates 167

Number of Tea Factories 128
Total Area 279506.875 Acres
Total Production 96.07 Million KG (2019)

Economic Contribution:
In 2000, Bangladesh occupied the 9th position among the 30 tea production countries in the world.
But gradually the production decreased and in 2013, Bangladesh got down to 12th position.
Despite the production of tea and tea products is increasing, the trend is downwards in the case

9
of Bangladesh. Compared to other South Asian countries (India, Sri Lanka), the production of tea
products is significantly lower in Bangladesh.

Once Bangladesh was a major exporter of tea. But because of the slow development of the tea
products, the exporting rate has downgraded significantly low. In 2014, Bangladesh exported only
2.66 million kg of tea to the countries like Afghanistan, Australia, Iran, Japan, Jordan, Kenya,
Oman, Kuwait, Pakistan, UAE, UK and USA. In 2018, Bangladesh wasn’t able to be a tea
exporting country. In that year, Bangladesh imported 12 million kg of tea.

Governing Bodies:
Bangladesh Tea Board monitors all the actions related to the tea business and encourage for
plantation of tea. It was established in 1977. The board works not only for the development of tea
industry, but also improve the lifestyle of the farmers and the labors. Bangladesh Tea Research
Institute is an autonomous organization under the BTB. BTRI is conducting research both
strategic and fundamental.

Employment:
Almost 300,000 workers work in the fields planting and taking care of tea plants. Also, more than
100,000 employees work in the mills to produce tea. However, the employees working in the
field, farmers are paid very low wages which is only 50tk/Day (Below USD $1). Women are the
most vital employment force in the industry. Almost 75% of the total plantation farmers are
women. But women are sometimes paid less than the men. Tea plantation workers are among of
the most vulnerable and socially excluded people in Bangladesh.

Manufacturing Process:
The farmers and the
plantation workers have to
pluck the fresh tea leaves
from the tea section. Plugged
leaves are then taken to the
factory for the purpose of
‘Withering’. The leaves are
hold in the trough for about
16 to 18 hours. After trough
withering it is processed for
manufacturing by several
processes these are cutting,

10
tearing and crushing. Shortly known as the CTC process. After that, the next step is fermentation
which completely depends on the heat of the room. There are two systems of fermentation which
are floor systems that is keeping in the floor for about 50 minutes and CFC that is keeping directly
through machine in order to drying. The tea that comes after drying is taken for being ‘shot’. Then
grading system is performed and it is packed in the polybag.

Wages of the Labor:

The labors are paid in a daily basis. They collect their wages from the top-management level. The
top management gets their wages on a monthly basis. However, there is also weekly based
payment system adopted by few tea garden managers. The daily wages of the labors are short,
only 55tk per day which is less than USD $1/Day. They have to work six days in a week.
However, they are provided with some extra facilities. The get free housing, accommodation and
medical services from the authority of the tea garden they are working in.

Sales:
The collected tea is sent to the auction market for sales. Auctions are placed in 1-45 numbers
based on the quality basis. After the process, almost 23% of the total tea is eligible for sale and
all the rest are waste.

Information about the total sales of some tea estates has been given below:

Average Price Per

Company Total Production Total Sale
KG
Khadim Burjan 6,37,773 218.40 139,289,623.20
Lalakhal 1,98,350 217.35 43,111,372.50
Jaflong 3,14,526 152.51 47,968,360.26
Monipur 5,03,083 209.97 105,632,337.50
Muminchara 3,37,608 206.40 69,682,291.20
Duncan Rajnagar 10,29,889 219.06 225,607,484.30
Duncan ITA 6,07,187 210.39 127,746,072.90
Ispahani Gazipur 5,88.614 243.59 143,380,484.30
HRC Clibdon 5,19,332 232.66 120,827,783.10
HRC Dildarpur 3,17,505 220.10 69,882,850.50

11
2.2 Importance of Tea Industry in Bangladesh:

Offering a cup of tea is a common courtesy to a guest in Bangladeshi culture. A cup of tea
carries different significance to people from different strata of society. A health-conscious
consumer thinks of having green tea while an overweight person too can consider drinking
green tea to lose weight. A person who has caught a cold feels a ginger or turmeric tea
would be the remedy. In our culture tea is believed to have some special herbal qualities.
That is exactly why the tea industries of Bangladesh are major sources of economic uplifts.
The demand of organic and value-added tea is increasing around the world, which opens
a new avenue for Bangladeshi producers. European Union, US, Middle East and China are
the potential markets for Bangladesh. Kazi & Kazi is the first and only internationally
certified organic tea brand in Bangladesh. The Kazi & Kazi official said as a leading brand,
they are having double digit growth in sales. After having an unsecured journey,
Bangladesh has secured a good position in producing high quality products like white tea.
So, there lies a great export opportunity for the tea industries. About 80% of tea in
Bangladesh is produced in Sylhet. So, the tea industries of Sylhet do contribute a lot in
the economy of Bangladesh. World tea production has been showing an annual increment of
3% while in Bangladesh the production has increased by 1.84 % and contributes 1.37 in export
in the word tea trade and earns near about 1800 million Taka every year. Besides these, BTRI is
doing research on new breed of tea which may increase the production. There are many scopes
through which tea industries can be turned into a potential source of economic development.
Training programs for the workers of tea industries, using the modern technologies in production
system, raising export opportunities can be very effective in creating new development eras for
Bangladesh.

12
2.3 Tea Industry in Sylhet Division of Bangladesh:
Most amount of tea in Bangladesh are produced in the Sylhet division. The surrounding area of
Sylhet is best for growing tea plants and tea production. The capital of tea, Srimangal, is also
located in the district of Sylhet. 135 tea plantation sites are available in the Sylhet region. Only
the Sylhet division is alone providing the 90% of the total tea production in Bangladesh.

District Wise Details:

No of Tea Land Usage

District Grant Area Total Area
Estates Percentage
Moulvibazar 91 156191.94 80313.9 51.42
Habiganj 25 54164.16 30743.58 56.76
Sylhet 19 28936.32 12138.80 41.95

Tea Estates & Gardens in Sylhet Division:

Basic facilities
SL. Total area Tea Production
Name of the tea garden & Rights for
No (Acre) Factory
tea workers

1 Ali Nagar Tea Garden 4462.88 Yes Yes

2 Aminabad Tea Garden 745.145 Yes Yes
3 Amrail Tea Garden 3853.16 Yes Yes
4 Atiabag Tea Garden 732.15 Closed Yes
5 Balishera Tea Garden 8652.6949 Yes Yes
6 Varaura Tea Garden 2601.84 Yes Yes
7 BTRI Tea Garden 476.15 Yes Yes
8 Chandovag Tea Garden 1043.7 Yes Yes
9 Chatlapur Tea Garden 3150.85 Yes Yes
10 Clivdon Tea Garden 1503.79 Yes Yes
11 Cloonal Tea Garden 399.05 Yes Yes
12 Dewrachara Tea Garden 1868.35 Yes Yes
13 Deanstone Tea Garden 8013.95 Yes Yes
14 Dhamai Tea Garden 2582.07 Closed Yes
15 Dildarpur Tea Garden 765.27 Yes Yes
16 Dinarpur Tea Garden 999.62 Yes Yes
17 Etta Tea Garden 3188.03 Yes Yes
18 Gazipur Tea Garden 2056.84 Yes Yes
19 Hafiz Tea Garden 132.88 Yes Yes
20 Hajinagar Tea Garden 449.35 Yes Yes
21 Hossainabad Tea Garden 999.43 Yes Yes
22 Jhimai Tea Garden 661.55 Yes Yes

13
23 Julekhanagar Tea Garden 861.26 Yes Yes
24 Jangolbari Tea Garden 1000 Yes Yes
25 Karimpur Tea Garden 3347.15 Yes Yes
26 Kurma Tea Garden 3152.19 Yes Yes
Luwani-Holichara Tea
27 2039.02 Yes Yes
Garden
Modonmohonpur Tea
28 996.7 Yes Yes
Garden
29 Marina Tea Garden 872.24 Yes Yes
30 Majdihi Tea Garden 3022.63 Yes Yes
31 Mirotinga Tea Garden 2478.91 Yes Yes
32 Mirzapur Tea Garden 2406.055 Yes Yes
New Shamonbag Tea
33 1846.18 Yes Yes
Garden
34 Nurjahan Tea Garden 738.2737 Closed Yes
35 Pallakandi Tea Garden 123.68 Yes Yes
36 Partrokhola Tea Garden 4587.28 Yes Yes
37 Fuultola Tea Garden 2636.55 Yes Yes
38 Fulbari Tea Garden 1514.756 Yes Yes
39 Premnagar Tea Garden 971.07 Yes Yes
40 Rajghat Tea Garden 5816.77 Yes Yes
41 Rajoki Tea Garden 2015.91 Yes Yes
42 Rajnagar Tea Garden 2412.8 Yes Yes
43 Roshidabad Tea Garden 400.09 Yes Yes
44 Rehana Tea Garden 464.46 Yes Yes
45 Sagaornalo Tea Garden 1800.61 Yes Yes
46 Saif Tea Garden 937.09 Yes Yes
47 Satgau Tea Garden 3078.8525 Yes Yes
48 Shomshernagar Tea Garden 4326.47 Yes Yes
49 Shilua Tea Garden 2474.67 Yes Yes
Shreegovindapur Tea
50 882.07 Yes Yes
Garden
51 Ohidabad Tea Garden 742.8 Yes Yes
52 Zerin Tea Garden 681.86 Yes Yes
53 Champa Roy Tea Garden 1996.31 Yes Yes
54 Dilkusha Tea Garden 1039.6 Yes Yes
55 Doloi Tea Garden 1200.9 Yes Yes
56 Kapnapahar Tea Garden 1925.85 Yes Yes
57 Longla Tea Garden 3202.76 Yes Yes
Uttarbag Indunagar Tea
58 3577.88 Yes Yes
Garden
59 Pallathal Tea Garden 795.93 Yes Yes
60 Ratna Tea Garden 1703.66 Yes Yes
61 Shonarupa Tea Garden 2502.23 Closed Yes
62 Bahadhurpur Tea Garden 631.02 Yes Yes
63 Chotolekha Tea Garden 1964.5 Yes Yes

14
64 Fatehbag Tea Garden 479.99 Yes Yes
65 Hamidia Tea Garden 455.18 Yes Yes
66 Hingazia Tea Garden 2354.19 Yes Yes
67 Islamabad Tea Garden 117.13 Yes Yes
68 Kaliti Tea Garden 1163.03 Yes Yes
69 M.R. Khan Tea Garden 600 Yes Yes
70 Madhobpur Tea Garden 2825.03 Yes Yes
71 Moulovi Tea Garden 1771.62 Yes Yes
72 Nahar Tea Garden 864.85 Yes Yes
73 Rangichara Tea Garden 1086.9 Yes Yes
74 Shahbazpur Tea Garden 2886.11 Yes Yes
Under
75 Patharia Tea Garden 1682.64 Yes
construction
76 Dokkhingul Tea Garden 1131.66 Yes Yes
77 Alladad Tea Garden 580.22 No Yes
78 Borhannagar Tea Garden 177.54 No Yes
79 Ajgorabad Tea Garden 1426 No Yes
80 Muroichara Tea Garden 875.06 No Yes
81 Mathiura Tea Garden 1656.55 No Yes
82 Nandarani Tea Garden 423.51 No Yes
83 Shofinnagar Tea Garden 97.96 No Yes
84 Kasipur Tea Garden 141.58 No No
85 Laxmichara Tea Garden 1096.34 No No
86 Shirajnagar Tea Garden 830.6075 No Yes
87 Kalikabari Tea Garden 344.62 No Yes
88 Ayeshabag Tea Garden 526.61 No Yes
89 Bijoya Tea Garden 755.76 No Yes
90 Kumarshail Tea Garden 985.79 No Yes
91 Rahmania Tea Garden 347.68 No Yes
92 Boikanthapur Tea Garden 922.54 Yes Yes
Parkul-Nasimabad Tea
93 2531.75 Yes Yes
Garden
94 Jagadishpur Tea Garden 1489.04 Yes Yes
95 Shurma Tea Garden 4454.39 Yes Yes
96 Chaklapunji Tea Garden 1753.79 Yes Yes
97 Teliapara Tea Garden 2601.28 Yes Yes
98 Rema Tea Garden 2114.61 Yes Yes
99 Nuapara Tea Garden 1701.07 Yes Yes
100 Chondichora Tea Garden 1960.43 Yes Yes
101 Sreebari Tea Garden 1649.12 Yes Yes
102 Lal Chand Tea Garden 2462.28 Yes Yes
103 Brindobon Tea Garden 1192.54 Yes Yes
104 Chandpur Tea Garden 3949.49 Yes Yes
105 Daragaw Tea Garden 4599.63 Yes Yes
106 Imam Tea Garden 1148 Yes Yes

15
107 Rashidpur Tea Garden 5574.3 Yes Yes
108 Deundi Tea Garden 2812.72 Yes Yes
109 Lashkarpur Tea Garden 2827.28 Yes Yes
110 Amu Tea Garden 2505.27 Yes Yes
111 Nolua Tea Garden 3063.03 Yes Yes
112 Amtoli Tea Garden 235.225 Yes Yes
113 Modhupur Tea Garden 1165.24 Yes Yes
114 Bawwani Tea Garden 1179 No Yes
115 Chaltachora Tea Garden 63.56 No No
116 Boban Tea Garden 208.52 No No
117 Ali Bahar Tea Garden 650.34 Yes Yes
118 Luvachara Tea Garden 1839 Yes Yes
119 Burjan Tea Garden 3263.31 Yes Yes
120 Khadim Tea Garden 3629.6 Yes Yes
121 Lakkatura Tea Garden 3198.05 Yes Yes
122 Lalakhal Tea Garden 1317.34 Yes Yes
123 Monipur Tea Garden 1694.69 Yes Yes
124 Jaflong Tea Garden 2164.14 Yes Yes
125 Afifanagor Tea Garden 868.96 Yes Yes
126 Habibnagar Tea Garden 1583.35 Yes Yes
127 Mominchara Tea Garden 986.12 Yes Yes
128 Malnichara Tea Garden 2514.13 Yes Yes
129 Dalia Tea Garden 174.77 No Yes
130 Star Tea Garden 392.96 No Yes
131 Shreepur Tea Garden 1017.52 No Yes
132 Fatepur Tea Garden 521.28 No Yes
133 Daluchara Tea Garden 325.52 No Yes
134 Khan Tea Garden 1578.32 No Yes
135 Meghaloy Tea Garden 1216.92 No No

16
2.4 Tea Export Scenario of Bangladesh:
As a developing country, we have very few export items. Among those, tea is a legend export
item. The tea industry of Bangladesh not only provides a huge amount of foreign currency, but
also provides a lot of employment. Besides the tea industry satisfies our local needs.
Export Export
Year Year
(M. Kg) (M. Kg)
1990 26.97 2005 9.01
1991 25.38 2006 4.79
1992 27.16 2007 10.56
1993 31.91 2008 8.39
1994 23.664 2009 3.16
1995 25.43 2010 0.91
1996 26.15 2011 1.48
1997 25.16 2012 1.56
1998 22.22 2013 0.54
1999 15.18 2014 2.66
2000 18.1 2015 0.54
2001 12.92 2016 0.62
2002 13.65 2017 2.56
2003 12.18 2018 0.65
0.5
2004 13.11 2019
(Up to October'19)

Tea Export (1990-2018)

31.91

35
27.16
26.97

26.15
25.43
25.38

25.16
23.664

30
22.22

25
18.1
Export (M. Kg)

15.18

13.65

20
13.11
12.92

12.18

10.56

15
9.01

8.39

10
4.79

3.16

2.66

2.56
1.56
1.48
0.91

0.65
0.62
0.54

0.54

5
0
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018

Year

Export Quantity

Day by day the export of tea is declining. In 1990 the export quantity was 26.97 million kg but in
2019 it dropped from 26.97 million to 0.5 million.

Our internal consumption is increasing but the production isn’t increasing according to the need
as a result the export is decreasing, and the import of tea is increasing.

17
2.5 “Vision 2021” and Road Map: Bangladesh Tea Industry
Few decades ago, Bangladesh tea was a consistent export earner and a big player in the global
markets because of its low rate of internal consumption and high demand in the international
markets. At present, the internal consumers of the country are consuming about 98% of its
produce. Consequently, this abrupt increase in internal consumption (@ 3.23%) causes to
decrease exportable surplus with a slow rate of production (@ 2%), which in turn causes to decline
in export (@ 2.98%) of tea. According to the current growth rate (1.6% per year) of the
population, by the end of 2021 the country’s total population will reach to 180 million which will
require 76 million Kg of made tea to meet the internal demand. But if the current trend of tea
production continued, by the end of 2021 it will only be 70 million Kg. So, in the coming year
the country will be treated as big importer of tea. Recently, government has declared the “Vision-
2021” and “Road Map: Bangladesh Tea Industry” to meet the domestic demand, restore and
extend the export market by increasing the production of quality tea. The ‘Vision-2021’ has
highlighted a target to 15 produce 100 million Kg of made tea by 2021 to meet internal demand
and restore the global market of tea. Linking with the Vision, the govt. has also declared a Road
Map mentioning short-term, mid-term and long-term action plan for overall development of
Bangladesh tea industry with special emphasis on strengthening and capacity building of
Bangladesh Tea Board, Bangladesh Tea Research Institute (BTRI) and Project Development
Unit. The following action plans have been mentioned in the Road Map to strengthen the Institute:

 Strengthening of BTRI Sub-stations

 Transfer BTRI-developed clones, seeds and other technologies to the tea industry

 Increase the use of organic matters to improve soil health

 Development of clones and improved seeds by hybridization

 Application of IPM for controlling pests (insect, mite, nematode, diseases and weeds)

 Establishment of biotechnology laboratory (for tissue culture and genome analysis).

 Overall development for improving livelihood of the personnel and tea laborers of the

institute.

18
Chapter Three: Methods of the Study

19
a. Data Collection:
We have collected data from interviewing the tea estate managers. And in some cases, due to
secrecy we couldn’t go into depth. But we have tried our best in collecting as much as we can.
In our research we have used both primary data and secondary data. In some cases, the primary
data wasn’t available so for that we have taken samples of previous years for analyzing.
Moreover, for some cases population was also used.

I. Primary Data:
The primary data had come by collecting the real information from tea estate
managers, on the other side in this survey the structured questionnaires is also
used. In this study tea estate managers have provided the real information.

II. Secondary Data:

Secondary data refers to data which is collected by someone who is someone
other than the user. In our research we have collected the secondary data from
different websites, from other research papers, from different newspapers,
from different books, EPB, BTB, BTRI etc.

b. Analysis of the Data:

Collected data and information have been organized, explained and analyzed by using
different statistical tools and techniques. This study is completed in an analysis and
giving suggestions in solving the problems the Tea industries in Sylhet division of
Bangladesh face whiling running it and the export scenario of tea at present.
We have collected the export data of tea from BTB, BTRI & EPB. Alongside of it the
production data and internal consumption data. Moreover, we have collected the data of
individual land area of every tea estates and tea gardens from Ministry of Land.

20
Chapter Four: Data Collection and Analysis

4.1 Tea Industry in Sylhet

4.2 Tea Estates & Gardens in Sylhet Division

4.3 Tea Production & Internal Consumption

4.4 Tea Export Data

21
Tea Industry in Sylhet:
Bangladesh is an important tea-producing country. It is the 10th largest tea producer in the world.
Today, it has 167 commercial tea estates, including many of the world's largest working
plantations. The industry accounts for 3% of global tea production and employs more than 4
million people.

Total Tea Cultivable Area in Bangladesh

Total Tea Estate & Tea Garden Area (Acre) Frequency

Sylhet 239292.42 85.612

Chittagong 35355.39 12.649

Rangpur 4859.065 1.738

Total 279506.875 100

Total Tea Cultivable Area in Sylhet in Bangladesh

2%

13%
Sylhet

Chittagong

Rangpur
85%

Sylhet is the land of hills and most of the tea gardens are situated in Sylhet Division. Among 167
tea gardens 135 are situated in Sylhet. Also, the first commercial tea estate was established in
Sylhet 1854 at Malnicharra in Sylhet district.

From the above graph it’s clear that most of the tea are cultivated in Sylhet. Total of 279506.875
acres of tea cultivable area 85.612% is in Sylhet, 12.649% is in Chittagong and 1.738% is in
Rangpur which are recently added. Sylhet plays an important role in tea business of Bangladesh.

22
Tea Estates & Gardens in Sylhet Division:
More than 80% of the internal consumption of tea is covered by the tea produced in Sylhet. In
Sylhet the tea gardens are situated in different places but most of them are mainly in Sreemongol,
Habigong, Moulovibazar and Sylhet city.

Tea Estate & Tea Garden Area Statistics in Sylhet Division

Area Tea Estate Tea Garden Total Area (Acre)

Moulovibazar 76 15 156191.94

Habiganj 22 3 54164.16

Sylhet 12 7 28936.32

Total 110 25 239292.42

Total Tea Estate & Tea

135 239292.42
Gardens in Sylhet Division

There is certain difference among a Tea Estate & a Tea Garden.

Tea estates are gardens where tea leaves are collected from grown plants, processed and packed
for sale. And where the tea workers have their basic lands rights and their basic needs are fulfilled.
On the other hand, tea gardens are areas which have area more than 25 acres and don’t have
facilities like the tea estates.

From the graph, Moulovibazar have 76 tea estates and 15 tea gardens and total area 156191.94
acres, Habiganj has 22 tea estates and 3 tea gardens and total land 54164.16 acres and lastly Sylhet
Sadar has 12 tea estates and 7 tea gardens and total land area of 28936.32. So, in total Sylhet
Division has 110 tea estates and 25 tea gardens and total land of 239292.42 acres of tea cultivable
land.

23
Tea Production & Internal Consumption:

Internal Consumption
Year Production (M. Kg)
(M. Kg)

1990 45.16 18.19

1991 45.03 19.65
1992 48.93 21.77
1993 50.51 18.60
1994 51.64 27.98
1995 47.67 22.24
1996 53.40 27.25
1997 50.52 25.36
1998 55.82 33.60
1999 46.18 31.00
2000 52.64 34.54
2001 53.15 36.95
2002 53.62 41.50
2003 58.30 37.44
2004 56.00 43.33
2005 60.14 43.30
2006 53.41 40.51
2007 58.19 46.27
2008 58.66 52.12
2009 59.99 53.74
2010 60.04 57.63
2011 59.13 58.50
2012 62.52 61.19
2013 66.26 64.00
2014 63.88 67.17
2015 67.38 77.57
2016 85.05 81.64
2017 78.95 85.93
2018 82.13 90.45
2019 96.07 95.2

24
 Tea Production & Consumption in Bangladesh (1990-2018)

85.05
100.00

82.13
78.95
90.00
Production & Consumption

67.38
66.26
63.88
62.52
80.00

60.14

60.04
59.99

59.13
58.66
58.19
55.82

58.3
53.62

53.41
53.40

53.15
52.64
70.00

51.64

50.52
50.51
48.93

47.67

56
46.18
45.16
45.03
60.00
50.00
40.00
30.00
20.00
18.19
19.65
21.77
18.60
27.98
22.24
27.25
25.36
33.60
31.00
34.54
36.95

37.44
43.33

40.51
46.27
52.12
53.74
57.63

61.19

67.17
77.57
81.64
85.93
90.45
41.5

43.3

58.5
10.00

64
0.00
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Year
Production Consumption

From the chart & graph it’s clear to us that during 1990, internal consumption of tea was only
18.19 million kg and tea was produced 45.16 million kg, which was nearly 2.5 times more than
the internal consumption. Day by day the internal consumption and the production increased but
not proportionately! As a result, at a point the internal consumption is greater than the production
of tea and so tea is imported from other countries.

From the graph it can be said that from 2014 the consumption of tea has exceeded the production
level. And during the last year 2018 the production was 82.13 million kg and the consumption
was 90.45 million kg. There is a deficit and to overcome the government has to import tea.

In the coming year the import of tea will surely rise thus causing our government to spend more
to import tea and decreasing our international currency. Importing tea will also mean a rise of
tea’s price. It’ll cause ordinary consumers to pay more.

25
Tea Export Data:
Tea has been one of the major exportable items of Bangladesh since 1971. We had a captive
export market in some countries to export tea. The scenario has been changed in recent years
because of open market economy, emergence of new entrants in the world market with low priced
tea and rapid increase of internal demand.

TeaExport
Tea Export(2001-2018)
(1990-2018)
31.91
27.16
26.97

35 26.15
23.664
25.43
25.38

25.16
16
13.65
22.22
30
14 12.92 13.11
12.18

18.1
25
15.18
12 10.56

13.65

13.11
12.92
Kg)

12.18
(M.Kg)

20

10.56
10 9.01 8.39

9.01

8.39
15
8
Export(M.

4.79

3.16
10

2.66

2.56
1.56
1.48
6 4.79

0.91

0.65
0.62
0.54

0.54
5
Export

4 3.16 2.66 2.56

0 0.91 1.48 1.56
2 0.54 0.54 0.62 0.65
1990
1991
2002 1992
1993
1994
2004 1995
1996
2005 1997
1998
1999
2007 2000
2001
2002
2009 2003
2004
2010 2005
2006
2007
2012 2008
2009
2010
2014 2011
2012
2015 2013

2016 2014
2015
2017 2016
2017
2018
0
2001

2003

2006

2008

2011

2013

2018
Year
Export Quantity
Year

From the above graph it’s clear to us that day by day the export quantity of tea is decreasing. In
2001 it was 12.92 million kg it increased in 2002 and again declined in 2003. After that it started
to decline. In 2002 it was the highest 13.65 million kg and in 2018 it is 0.65 million kg. day by
day our internal consumption is increasing but the production rate isn’t increasing as proportion
to consumption. As a result, there is scarcity and tea are being imported.

In Bangladesh among 279506.875 acres of are tea cultivable are is 156915.1596 acres and others
are 122591.7154 acres. Among the tea cultivable are of 156915.1596 acres, 90.04% is under
cultivation and the rest 9.96% is not under cultivation. So, if we can bring this 9.96% area, means
15628.75 acres under cultivation the production will increase.

Bangladesh earned over Tk 360 million by exporting tea in the last fiscal year, said Commerce
Minister Tofail Ahmed. "Bangladesh fetched foreign currencies equivalent to Taka 36,03,02,767
by exporting 23,89,801 kgs of tea in the last fiscal 2017-2018," said he.

Bangladeshi tea, mostly black tea or black CTC tea is being exported to UAE, Australia, Bahrain,
Canada, China, Cape Varde, Cyprus, United Kingdom, Hong Kong, Indonesia, India, Italy,
Jordan, Japan, Korea, Kuwaut, Sri Lanka, Liberia, Mauritius, Maldives, Malaysia, Nigeria, Nepal,
Newzealand, Oman, Papua New Guinea, Pakistan, Quatar, Saudia Arabia, Sweden, Singapore,
USA and South Africa regularly

26
Chapter Five: Problems & Prospects of Tea
Industry in Sylhet Division of Bangladesh

5.1 Problems faced by Tea Industries in Sylhet Division

5.2 Prospects of Tea Industries in Sylhet Division

27
5.1 Problems faced by Tea Industries in Sylhet Division:

1. Lack of skilled labor:

About 350,000 plantation workers are employed in tea gardens around Bangladesh and most
of them are women. Many are descendants of tribal laborers. But it’s a matter of regret that
a few of those people have skills about the plantation works and many of them still depend
on the ancient plantation methods.

2. Lack of efficiency:
In Sylhet division, many of the tea industries still use the ordinary process of production,
the same process that was used about 30-35 years ago. As a result of this, the production
efficiency gets lower.

3. Lack of transportation facility:

Another problem faced by the industries in Sylhet is lack of transportation facility. There
are a few open highways in this division to transport the tea products. Besides, lack of
waterways for transportation also stands as a constraint. Moreover, the conditions of hilly
transportation roads are worse as well as narrow in most of the particular tea-estates.

4. Labor unrest:
Workers of various tea plantations across Bangladesh are now on an indefinite strike
demanding an increase in the minimum wages per day. The striking workers are being
unstable in works that causes harm in tea industries. Labors are now demanding their rights
for the lack of top managerial concern on them.

5. Interruption in supply of electricity & gas:

The supply of gas and electricity have been less than the demands for long days in our
country. Load shedding, power outage, lack of fuel and gas etc. have been great problems
for the tea industries in our country. There are many causes of power failures in an electricity
network. Examples of these causes include faults at power stations, damage to electric
transmission lines, substations or other parts of the distribution system. These causes
serious effects on tea manufacturing machineries. Besides, shortage of gas supply also
intercepts the production efficiency. Particularly in Sylhet division, lack of gas supply
makes industries suffer more. Besides manufacturing tea production also suffer due to the
electricity interruptions.

28
6. High production cost:
In Sylhet, tea manufacturing and production process is getting developed day by day. But
to keep pace, the industries need to use the higher efficient process which in result increases
the marginal cost of production.

7. Lack of proper use fertilizer & insecticides:

Lack of knowledge and experience, many of the workers can’t apply the right amount of
insecticides and fertilizers on young tea-plants. As a result, many young plants can’t be
generative of tea leaves. There is some standard amount of using fertilizers and insecticide
which should be followed growing tea leaves.

8. Use of traditional machinery & equipment:

Many of the modern machineries and equipment have been invented which increases the
efficiency of production. But in Sylhet division tea productions are still dependent on the
traditional process. It’s happening mainly because, the industries are located on those
remote regions where the people do not know much about the modern production process.
Lack of education and knowledge is also behind on those problems.

9. Lack of capital:
Lack of capital is one of the major problems for the tea industries in our country. Being a
lower-middle incoming county, the economic conditions of our country is not that well at
all. Though nowadays the economy is emerging, but the government is not well concerned
on investing on those tea industries.

10. Natural Calamities & Climate changes:

The tea board said that tea production is being hampered due to unfavorable weather
conditions. Besides, frequent climate changes also effect the tea gardens in Sylhet divisions.
Unpredictable natural calamities also frequently visit those areas which cause serious
damage on tea industries of Sylhet.

29
5.2 Prospects of Tea Industries in Sylhet Division:

1. Development of quality:
As the quality of Bangladeshi tea is poor, producers should concentrate on developing its
quality. If we want to capture a good position in the world market, there is no alternative of
developing quality and the industries in Sylhet should be taken under surveillance.

2. Capitalizing the advantage of attractive color:

It is agreed that Bangladeshi tea does not have flavor like other exporting countries. But it has
got very attractive color for which there are plenty of demands of Bangladeshi tea to the
importers. As most of the Bangladeshi tea products come from Sylhet, we have to make efforts
to continue it by capitalizing these territories.

3. Formation of Forums or Associations:

To ensure the entrance of new companies and continuous development of quality, more &
more forums and associations of persons related to tea industry should be formed. These
forums and associations can easily encourage producers by introducing reward systems.
Formation of trade block can help to capture more market share.

5. Use of modern technology:

It is very important to use modern technology to develop the quality of any product and
compete with others in the market. So, to achieve a sustainable position in the global market,
more use of modern technologies and practical appliance is must.

6. Infrastructure development:
As tea gardens in Sylhet are in the Hill Tracts, there should be sufficient communication
facilities available. Govt. & Private sector should work together to develop the roads and rail
facilities which is essential for effective marketing of tea. Banking facilities for the tea
industries in Sylhet region should be improved and increased.

7. Mixing at international standard:

The mixing functions can be arranged as per the international demand. For this govt.
assistance must be extended. The mixing activities should be consistent with international
trade & commerce. If the mixing output matches the global market demand, the rate of export
will be increased.

30
8. Government Assistance:
Govt. has a very significant role to play for the development of the tea industry. Govt. can
encourage the producers and distributors by providing various offers like tax holidays, lower
tax or Zero tariff in export, etc. The government can run research on tea and can make
necessary steps for the development activities related with tea industries. For example, in
Sylhet, most of the tea estates as well as gardens are located on hilly tracts. In this case, the
government can ensure the supply of power without any interference and can develop the
transportation facilities by constructing railways or highways.

The Govt. should take the following strategies to tea export

i. Simplification of export procedures and strengthening export led cooperation through

reducing regulatory role of the government.

ii. Rationalization of the value of taka to make the export trade more attractive.

iii. Creation of an export promotion fund (EPF) for strengthening the tea export.

iv. Encouraging the establishment of backward linkage industry.

v. Expansion & consolidation of existing markets and creation of new market.

vi. Allowing import of high-quality foundation tea for blending and establishing the brand

name of Bangladeshi tea through marketing.

vii. Taking measures to improve quality, increase production and expand market of

exportable tea.

viii. Providing appropriate financing facilities.

ix. Creating product development councils for important products like tea.

x. Developing and expanding infrastructural facilities for exporting tea.

31
Chapter Six: Findings & Recommendation

32
6.1 Findings:
1. Problems faced by the tea industries of Sylhet division of Bangladesh.

2. Prospects of those problems faced by the tea industries of Bangladesh.

3. About the tea gardens which have factories, and which don’t have any or which are

constructing factories.

4. About the total land area of tea gardens in Bangladesh, the total land area of the tea gardens

situated in Sylhet division of Bangladesh, total cultivable area of tea and total area of tea

cultivable land which can be used for tea cultivation.

5. How the tea is produced, from tea leaf to tea.

6. Present and past scenario of tea production, internal consumption and export of Bangladesh.

7. Yearly production of tea and internal consumption of tea.

8. Foreign earing from export of tea.

9. About the standard of living of the tea workers.

10. About the government schemes taken for Tea for “VISION 2021”

11. Importance of Tea in economy of Bangladesh.

12. About the branding of tea

13. Women employment in Tea industry

14. Importance of the development of tea sectors in Bangladesh

33
6.2 Recommendations:
According to our findings, some recommendations were made to cope up with the challenges and
to gain the benefit of the opportunities. These are as follows-

1. Modern and artificial irrigation system should be established to overcome the drought and

inadequate rainfall.

2. Set up water reservoir and embankment for irrigation during crisis period.

3. Efficiency of labor(production/labor/day), productivity per hector should be increased. It

could be possible to train labor force by more experienced and expert person.

4. Increase average utilization of cultivable land (above 55%, now it is 51.50%).

5. Set up additional labor shed (at least 15000unit), sanitary toilet (15,000), tube-well (20,000)

for development of life living standard of labor.

6. Increase per hector labor (at least 10/hector) for quality tea production.

7. Prepare road, culvert and bridge where necessary.

8. The marketing process of tea industry needs to be revised. The production of green tea, ginger

tea, Tulshi tea is still not very known to the customer of global market. The accountable party

of the industry should take appropriate marketing strategy to overcome this problem.

9. The replacement of ancient tea bushes is essential. The authority needs to plant new trees in

the garden and use natural fertilizer for the trees.

10. Infrastructure development of the tea estates are needed.

11. Training programs for the tea workers should be organized.

34
Conclusion:
Tea industries of Bangladesh are facing numerous problems. Some of the problems concern
security problems of executives, unexpected natural calamity, deterioration of law and order
situation of the tea estates, political or outsider influence on their internal agreements, illegal
occupation of land by the outsiders, lack of medical facilities, unhealthy atmosphere in the labor
lines, lack of infrastructure, lack of capital and modern machineries, lower market value of made
tea in comparison to increasing production cost, improper use of government loans, lack of
potential water sources for irrigation during dry season, lack of educational and practical
knowledge etc. For successful tea culture the above problems must be solved. To reduced
production cost quality tea must be produced. We must make clone tea with high yielding variety
having good quality. Effective steps should be taken by government and private sectors to develop
the tea industries. Major territories of tea industries such as Sylhet division, should be marked
and taken under concern. If the tea industries are taken under development and major restrictions
are eradicated, there will be more ways through which economy can be enriched.

35
 Appendix A

“REFERENCE”

1. Prospects and Challenges of Tea Industry in Bangladesh.

S. M. Salim Raza, FCMA, Head of Corporate Accounting, Paragon Group

2. Tea Productions, Consumptions and Exports: Bangladesh Perspective

Tasnuba Nasir and Mohammad Shamsuddoha.

Faculty of Business Administration (FBA), University of Science and Technology

Chittagong (USTC), Bangladesh

3. BTRI Annual Report 2019

4. FORECASTING THE TEA PRODUCTION OF BANGLADESH:APPLICATION OF

ARIMA MODEL

Md. Moyazzem Hossain and Faruq Abdulla

5. Investment for Sustainable Development of Bangladesh Tea Industry - An Empirical Study

Dr. Kazi Muzafar Ahammed

Deputy Director (Planning)

Bangladesh Tea Board

6. “STATISTICAL BULLETIN OF BANGLADESH TEA BOARD” For the month

December 2019

7. TEA INDUSTRY OF BANGLADESH

Md. Yousuf Kamal

Md. Nazim Uddin Bhuiyan

8. Bangladesh Tea Statistics. CEIC

9. Revitalizing the tea sector of Bangladesh. The Financial Express

36