The government of Himachal Pradesh (HP) is now striving to revive its tea industry. It has come up with an ambitious plan to resurrect Kangra tea's sagging fortunes. Chief minister Prem Kumar Dhumal says, "We are trying to attract private investments in the state's tea industry."

Top of the government's agenda for the industry is corporatisation of tea cultivation. "The tea industry in Himachal Pradesh needs a fresh dose of capital. The technology being used currently for the cultivation and processing of tea is outdated. As a result, we have been left far behind the competition. The only solution is to attract private players and encourage them to grow as well as process tea in the state," says JC Rana, director, agriculture, government of Himachal Pradesh.

Tea began to be grown in Himachal Pradesh in 1849. That was the year Dr Jameson, the then garden superintendent of the Botanical Gardens in Peshawar, visited Kangra district, in Punjab at that time, and recommended that the lower slopes of the Dhauladhar mountain range, lying between 900 and 1,400 metres above sea level, and averaging 152 cm of rain annually, be used for tea cultivation.

In the years since, Kangra tea gained wide popularity and international recognition for its quality, winning gold and silver medals in the Amsterdam and London markets between 1886 and 1895.

In 1905, calamity struck. The great earthquake of Kangra ruined its flourishing tea industry. The panic-stricken Britishers sold their plantations to local buyers, who could not maintain them because they lacked technical knowledge and the necessary processing facilities. Besides, the landholdings were fragmented and provided low returns as a result. Not surprisingly, many plantations were either uprooted or abandoned.

Kangra tea never recovered its lost glory. Not all the steps taken in the years after by either the state government or the Tea Board of India have made the slightest difference. Four cooperative tea factories were established by the HP government to upgrade tea processing in the state.

These have met with limited success with a low productivity level of 740 kg made tea per hectare against a potential of 3,000 kg. Finally, this has only further aggravated the situation.

According to SS Butail, chairman of the Palampur Tea Factory and a member of the Tea Board of India, "There is no major problem in tea processing, but the fact that we are catering to over 200 tea gardens, which produce different kinds of tea buds, affects the quality." Mr Butail also admits that domestic tea prices have fallen due to cheap imports from Vietnam, Indonesia, Sri Lanka and Kenya.

"Most of the problems faced by the tea cultivators stem from the small size of their holdings, which makes tea cultivation commercially unviable. Over 95 per cent of the tea grown in the state falls in the small farm category," says Mr Rana. "Currently, on an average, one hectare of tea yields an income of between Rs 10,000 and Rs 15,000, which is not enough to sustain an average family unit. Therefore, tea cultivators have abandoned their holdings to venture into other professions. Out of the total area of 2,312 hectares, 47 per cent lies abandoned or neglected at the moment." In eastern India, for example, the average size of a tea garden is 1,500 hectares.

It is in order to achieve such economies of scale that the HP government is seeking to interest corporates in tea cultivation. Mr Rana explains, "The tea plants need about 6-7 years to grow before they are ready for harvesting. High levels of investment are required to set up and maintain a quality tea garden. Big players with a proven record in this field will be able to bring in new technologies, not only in planting, but also in processing. All this will benefit existing tea growers."

For starters, the HP government has framed a tea policy to act as a guideline for attracting investments. Government agencies have identified 7,700 hectares of land in the districts of Chamba, Kangra and Mandi so that the area under tea cultivation can be expanded. Bids have already been invited from the private sector to plant tea crops here. A private player is required to take up a minimum of 200 hectares of land in order to ensure commercial viability.

The government has received over 100 proposals, 10 companies out of these have been shortlisted. Land will be leased out to these parties after a thorough scrutiny of their project reports by a committee headed by the state chief secretary. Winning bidders will be required to plant one-sixth of the net area every year, starting with the end of the second year; construct a processing facility by the end of the third year; and have the processing facility functional by the fourth year. The full area has to be brought under cultivation within a period of 8-10 years.

The HP government is laying special emphasis on the production of organic tea. Organic tea enjoys a very good market globally.

In addition, it is encouraging `Tea Tourism', whereby lessees of tea gardens sized 50 hectares or above can construct guest houses for tourists. Says tea planter JS Sood, "Tea tourism has tremendous scope in this region as a tea garden is very pleasing aesthetically. Besides, these parts of Himachal Pradesh are exceedingly beautiful and can be a big attraction for tourists."

The government has set a time-frame of 2-3 months to complete the whole process and get things moving for the tea industry. SS Thakur, a tea grower, says, "The time taken to implement the policy is crucial to the success or failure of this initiative. One can only hope that the plans do not get stuck in the bureaucratic quagmire." Amen to that.