Accra:The government has unveiled plans for financial, technological, and policy reforms aimed at rejuvenating the country's tea sector. These initiatives include boosting productivity, investing in solar power, and diversifying exports to address challenges such as aging plantations, rising costs, and increasing loan defaults.
According to Bangladesh Sangbad Sangstha, these strategies were discussed during the first meeting of the Monitoring and Advisory Committee on Tea Industry Development. Chaired by Commerce Minister Khandakar Abdul Muktadir, the meeting emphasized the need for a long-term development strategy, garden-specific action plans, and coordinated support from relevant ministries and financial institutions.
Bangladesh Tea Board Chairman Major General Md. Mesbah Uddin Ahmed noted that domestic production currently meets approximately 97% of the country's tea demand, with the remaining 3% being exported. The Tea Board is focusing on higher production and quality to first satisfy domestic needs and then expand to overseas markets. Efforts to strengthen communication with foreign embassies, consulates, and export communities are also underway to explore new markets.
The Bangladesh Tea Research Institute is actively conducting research to enhance the sector, while stakeholders receive regular training in production methods, blending, and export development. The committee's report highlighted the necessity for careful land-use assessment and indicated that overlapping cultivation areas require strategic management.
The tea industry in Bangladesh faces several production and structural challenges. Many tea gardens have plants older than 50 years, with low replantation rates, rising labor and input costs, and lower yields compared to other countries, such as India and Sri Lanka. The Commerce Minister stressed the importance of reducing dependence on loans and transforming the industry into a sustainable contributor to the national economy.
Financial distress remains a significant hurdle, with Bangladesh Bank data showing billions in outstanding and classified loans. The committee discussed loan restructuring to ease pressure on tea-garden owners and proposed a revolving fund with a 6% interest rate to support production and investment.
Additionally, there's a proposal to reduce interest rates on tea-production loans and recognize tea as an agricultural product to facilitate access to concessional agricultural credit. The Tea Board supports this, but the Industry Ministry raised concerns based on the National Industrial Policy 2022.
The committee also proposed allowing partnerships for solar power development on unused lands and suggested other income-generating activities, ensuring environmental protection in tea-growing regions. The focus on export diversification includes overcoming barriers such as limited specialty tea production and weak international certification.
Overall, the proposed reforms require coordinated efforts from various ministries and the Bangladesh Tea Board, aimed at improving management efficiency, financial stability, and positioning Bangladesh as a stronger player in the global tea market.