Turning Around Nilgiri Tea Industry
- Ayodhya Prasad Singh
- Published on 14 Jul 2021, 4:37 pm IST
- 6 minutes read
Highlights
After taking over as CEO of Tea Cooperative Indcoserve, Ms Supriya Sahu IAS, changed its fortunes in six months. Fairtrade Certification was the icing on her cake.
- IAS Supriya Sahu with Indcoserve workers
Tea is a staple beverage the world around. It’s not only a stress-buster and anti-oxidant but also known for its aroma and taste. However, Indian tea was synonymous with Darjeeling and Assam Tea. Not, anymore. Nilgiri tea, grown on Western Ghats in Kerala and Tamil Nadu, is now rubbing shoulders with the best tea in the world. Thanks to Ms Supriya Sahu, Principal Secretary, Forest and Environment of Tamil Nadu Government who is also CEO of Indcoserve, India’s largest tea cooperative federation.
The organisation was a behemoth riddled with myriad issues including abysmally low prices of tea leaves which had triggered workers’ unrest. That was till Ms Sahu took over the organisation in 2019 and turned it around by taking some well-thought-out steps which had deep impact. Foremost of them was getting an international certification for Nilgiri Tea.
It was a historic day for Indian Tea industry. Tamil Nadu’s Nilgiri tea grown by the state agency Indcoserve, had been granted Fairtrade Certification from Global Fairtrade Certification agency – Flocert. Headquartered in Germany’s Bonn city, this certification, valid in 72 countries, is expected to get the Nilgiri tea global recognition. Related Stories
Indcoserve is India’s largest tea cooperative federation nestled in the picturesque Nilgiri hills. It consists of 30,000 small tea growers. The organisation was grappling with farmers’ unrest due to low prices they were getting for their produce. But, that was only until Ms Sahu provided her Midas touch and things started turning for the better. 
The organisation has 16 factories producing 14 million Kgs of Indco tea every year. It is also the backbone of Nilgiri’s economy. Ms Sahu was bestowed with the Fairtrade Award by Tamil Nadu Chikef Minister Mr MK Stalin recently.
Indcoserve is a 56 years old organisation. Its never easy to bring about radical changes in such a monolith. Ms Supriya Sahu revealed her plans in a conversation with Indian Masterminds, “I took up the job in October 2019 and brought about certain structural changes which have put the company in the big league”.
Under Ms Sahu’s leadership Indcoserve worked consistently on a 15-point charter to improve its water management and safety systems. It has promoted organic farming while creating awareness about safe use of insecticides and fertilisers. This is why despite being a government organisation Indcoserve is competing with private tea producers, shattering myth that public sector units are only money guzzlers, with no scope for improvement. In fact, Indcoserve has sold 6 million Kgs tea to Tamil Nadu and Kerala Government during past six months.
HICCUPS
Her Initial days at Indcoserve were very difficult as the company was then facing lot of problems. During her stint as Nilgiri Collector Ms Sahu had to face the ire of a hostile crowd angry at a very low rate of Rs 2 for tea leaves. In fact, the whole tea industry was undergoing a recession and even export had hot an abysmal low. “But, we didn’t lose hope. Spoke to tea producers, open talks with government, private and international channels, brought situation under control and again established a competitive market”, she says.
The foremost issue faced by the industry was frequently fluctuating prices on weekly basis. This was caused by external factors like tea markets in North East India, Sri Lanka or even Kenya, who have better tea growing conditions and better produce.
INTERNATIONAL CERTIFICATION
Ms Sahu’s team studied best practices of national and international tea companies and applied for international certification. “The result is that Indcoserve is India’s first government-run cooperative society to get Fairtrade certificate. Besides, our three factories too have received ‘trustee certificate’ while others are also in the process of getting it in next few weeks”, she told Indian Masterminds.
Fairtrade certificate might bring in a positive change in Indian industry, she feels. “This certificate demonstrates an organisation’s commitment to think beyond its economic interests. In a young and aspirational country like India, we need more emphasis on strengthening our producers and labourers while developing a fair-trade system for everyone. The certification has a clear aim – price based and equitable development.
CERTIFICATE’S GLOBAL VALUE
Beverages industry is growing rapidly. People’s choices have been diversifying and so is demand of such products which are different, away from the crowd. Products having high standards always sell more. This is the value proposition that can be achieved by virtue of acclaimed certificates such as Fairtrade.
An organization being Fairtrade certified means that buyers of its product need to pay a fair-trade Minimum Price and fair-trade Premium to the producers. The fair-trade premium provides farmers and workers with additional money to invest in improving the quality of their businesses and communities.
“Such coveted certificates enhance brand value, brand identity and reach. Also, obtaining such certificates contribute towards modernization, rejuvenation and upkeep of products as well as product related infrastructure”, Ms Sahu told Indian Masterminds.
THE CHANGES
These are but few changes effected by Ms Sahu in a bid to energise Indcoserve..
Mission Quality: She appointed quality control officers to maintain quality of our products. Because of this mission, we have been able to produce better quality tea which we have been selling at a premium, fetching us good revenue.
Tea Testing Room: A modern ‘Tea Testing Room’ was built in the head office as per global standards.
Training and policy: Staff is being trained to improve their efficiency and quality of the product. An incentive scheme has been started as well. 
Indco Tea Trucks: With funds from Special Area Development Programme (SADP) we have started playing our own trucks. “We have been operating 5 such trucks and have plans to ply 20 trucks across the state,” she says.
Indco Tea House: In a bid to create new markets first tea and snacks shop was launched at Bedford in Coonoor. It will emerge an experience centre for the visitors while providing a platform to local writers and musicians to showcase their talent.
Smart Tea Leaves Collection Centre: 50 such centres are being set up with financial help under SADP, to provide proper collection and weighing facilities for green tea leaves.
Modernisation: NABARD has sanctioned a Rs 18 crore grant for modernisation of five tea factories. We have also converted Indcoserve website into an e-commerce site. Company’s media presence has been enhanced through appointment of a dedicated brand manager.
New Brands: Seven new brands like Mountain Rose, Bedford and Blu Mont have been launched to provide better choice to patrons. Company has recently received bulk orders from both Kerala and Tamil Nadu governments.
Ms Supriya Sahu is not stopping at this. She has many more plans up her sleeves which she expects to execute shortly.
END OF THE ARTICLE
