Assam tea business can make you a very successful businessman for generations. To become a successful Tea Businessman, you must be armed with good knowledge of tea and an urge inside to become Employer not Employee.
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Learn To Run A Successful Tea Business You are drinking tea for a long time. You have bought different prices and qualities of tea in different time. You have also seen, almost all tea, be it of higher prices or of low prices looks same to similar, yet prices are different. Being a would be tea businessman, you wonder why prices are different and which one to buy. Here we have given directions how to decide.
I do not have slightest confusion about who should be the tea supplier.
I just have gone through the previous article on this page. Unlike him, I do not have any hesitation and confusion about the right tea supplier for me. No you should not buy it from the tea producer. Because he may or may not charge you fair price. He may charge abnormally high price or he may charge normal unfair price.
When you buy from a single seller, you can not compare the price and quality of that particular tea seller with other seller. But when you buy it from tea market preferably from a tea auction market, you can visit 5 or 10 or 20 wholesalers\' shops, then you can take an informed decission.
It is true that a wholesaler will add his profit on the price from you but at least you can compare his price with many other wholesalers. You can buy only after finding out best available quality at cheapest offer.
Buying directly from tea auction center is a very costly affair because of the yearly fee above Rs 150,000 plus stringent rules associated with bvecoming a auction buyer.
But you can choose an auction buyer who will charge 50 paisa to Rs 2 per kg you on your order. So you are assured of the amount you will pay extra on your tea purchase. Moreover, auction brokers are expperienced buyers so he can give you good suggestions on best purchase.
Tea auction is held every week, so tea market is open to you always throughout the year. But meeting a tea garden manager or tea garden owner is not easy, particularly, if you are planning to buy a few hundred or a few thousands kg tea.
Assuming that you are a medium size wholesalere buying around 5000 kg tea per month. To get best rates and quality you decided to approach a tea garden. Let us assume that the tea garden is a reputed high quality tea maker and you are also a good tea tester. You have reached the tea garden and manager or owner of the garden corditially received and offered tea testing facility. You have selected the best tea from his offers. Now how you or the seller are going to decide about the price! Seller may qoute the prices he got in last auction. But last auction prices are 6 to 12 weeks old. in this 6 weeks prices in auction might have come down. The seller has to spend around Rs 10 to sell his tea in the auction. He gets the payment after 6 weeks of sending the tea to auction. Is he giving you the discount for cash sales or the savings in for not selling in auction!
My experince as tea garden sr officer for over 30 years, I have never seen tea is sold at reasonable prices to small wholesalers. It was always squeezing the hapless wholesaler once and for all.
I will always suggest that buy your tea from a trusted auction buyer who will give you price list in advance with the his advice on tea quality on offer like https://assamteasellers.in
Who shall be my tea supplier? Since I do not produce tea but I find tea business has got very high potentiality.
I am thinking over the matter that from where should I buy tea for my proposed tea business. I need a good supplier to whom I can trust and depend.
I know it is always better to buy from source. For me source is a good tea garden, who make consistently good tea throughout the year. It is naturally expected that when I am buying from tea garden directly, I am eliminating all middlemen like auction centre, big wholesaler, small wholesaler and I expect to get a reasonable and fair price. I know that after making tea, all tea gardens send the tea samples to their respective brokers. Brokers in turn test the tea and estimate the expected price. Tea gardens may accept the decided minimum price or may not accept it. If accepted, tea is sent to to auctioning city. In case of Assam, it is in Guwahati.
Tea producer spends around Rs 3 per KG for transportation if he is sending tea to Guwahati auction. He is spending around Rs 5 per kg when a Assam tea producer is sending tea to Kolkata auction.This estimated transport charge was before Ukraine war. Now with higher diesel prices, transportation charge is also higher.
Tea producer has to keep it in warehouses after sending for auction. Warehouse charge is at least Rs 1 per kg for first month then if it remain unsold in auction producer has to pay higher charge for warehousing. Auction broker will get from the producer at least 1% of sale price. There will also auction membership charges. These total expenses could be between Rs 11 to Rs 13 per KG. Tea is sold at Guwahaty auction after 3 weeks of its arrival in the warehouse. So the producer will get the price of tea approximately 6 weeks after it is produced. if tea garden sell the tea to me directly then he can save all these expenses and also get the money immediately. Only problem I may face that a tea garden generally sells minimum 1 truckload , i,e, 10000 kg tea minimum. That means around Rs 15,00,000 investment. Whether it will be wise for me to invest such a big amount for buying tea at the start of the business. This 10000 kg tea will require a suitable godown for keeping food item. Next I require a group of employees for proper keeping of my tea stock. This is definitely a great disadvantage for a new businessman like me.
History of Assam Tea Though Assam Tea is indigeneous product, but invador conferred honour of discovery of the Assam tea plant is usually attributed to Robert Bruce who is supposed to have seen the plant growing will in some hills near Rangpur (Near present Sibsagar) then the capital of Assam, which he visited in 1823. At that time he made agreement with a Sing pho Chief, Sri Bisha to supply him some tea plants during his next visit in the following year. Assam was then under Burmese occupation and war broke out with the Burmese in 1824. Robert Bruce also died in the same year C. A Bruce brother of Robert Bruce interviewed the Sing pho Chief who supplied him some tea plants and seeds. Most of the seeds were planted in Bruce’s garden at Sadiya and some were sent to Commissioner Jenkins at Guwahati. A few leaves of these plants were sent to Botanical Gardens in Kolkata.
Tea is RECESSION FREE business Always remember tea business is recession free. People drink tea every day and every night. Be it a rainy day or a winter day. Every year, we find that either this business or that business are going through crisis. Employers are unable to pay dues. Employee numbers are downsized. This is a world wide phenomenon. It is a part of almost all businesses. But tea business, particularly tea trading business are free of recession. People goes on taking tea even if there are minor or major recession encircled a country. So you can easily start tea business any time of the year or even at the time of all pervasive world wide recession. Like normal food, people will continue to take tea come what may.
Tea Auction Price After making tea, all tea gardens send the tea samples to their respective brokers. Brokers in turn evalue it and decide about expected price. Tea gardens may accept the decided minimum price or may not accept it. If accepted, tea is sent to to auctioning city. In case of Assam, it is in Guwahati. Generally transportation charge comes to Rs 3 to Rs 4 per KG. Then the tea consignment is put in a warehouse. Warehousing charges are approximately Rs 1 per kg in the first month. If it is kept more than a month then charge goes up to approximately Rs 4 or more per kg per week. Finally Tea Broker will charge 1% from the seller and 1% from the buyer.Say tea is sold at auction at Rs 100 per KG. Then Rs 100 minus transportation Rs 3, minus Rs 4 for warehousing - Rs 4, minus Rs 2 Brokerage= Rs 87 is the amount the seller garden is getting approximately. We have not deducted GST, because that you have to pay either you buy it from garden directly or through broker. Only problen is, 99.99% gardens wont sell less than 10000 kg at a time. Where as, buying it from a broker could be as less as 5/600 kg or one lot of tea.
Tea Sample Described. All tea gardens or tea wholesalers give tea samples. If you are a tea businessman and buying tea from a few gardens regularly, you are eligible for free samples.If you are first time buyer, you may have to pay for samples and courier charges. Gardens give two types of samples--- Lot samples and type samples. Lot samples are the samples of exact lot the garden has produced and type samples are similar to the regular production of the garden. Generally, Lot samples are given by the gardens to the Auctioneer or in case of a garden which can hold the stock for longer time or a garden where stock is slow moving and does not have sufficient private buyers. Type sample are given by the gardens which can not or does not hold the stock for longer time or it has got numbers of private buyers and quality is steady. In our case, we give type samples.
Instant tea Quality Checking Here are a few simple and effective way to find out quality of tea.,br> 1.Look of the tea must not be too black or too brown. Tea becomes Coal-Black, then be sure it is artifitially made and it will give soft cup. Again if it is brown then over matured leaf has been used hence it is brown and low quality. 2. Tea should not be of duel color. If you find black and brown both colour in the tea granuels, it means both overgrown and normal leaf is used to make the tea. Overgrown leaf made a part of the granuels brown. 4. Tea granuels must be round and of equal size in one grade. If it is open or flaky then it is of low quality. 4. Tea has got a distinct aroma. Higher the aroma, better is the quality. But stale odour of tea means old tea.. 5. Find out, If you mix tea with cold water, does it start giving colour instantly. If yes then illegal and artificial colour has been mixed to improve looks of very low quality tea.
Blended Assam Tea Have you noticed, almost all packeted tea are mixture or blends of 4/5 types of tea? If you wish You can buy individual grade or grades of tea from us or you may buy blended tea from us without any extra cost. Tea blending is an easy job. You are required to mix 3/4 types of grades together Just Remenber the basic, bigger grades give nice colour and smaller grades make tea stronger.
If you are planning to sell tea without packing it, you may not require to blend it. But if you plan to launch your own brand of packet tea, blended tea is always preffered.
Blending helps you to maintain similar quality throughout the year and at the same time, with blending, you can control cost also. For detail tea blending technique, please check Tea Blending
Many new tea businessmen are often becomes confused about Primary, Secondary or RP Tea. For easy understanding, we have decided to put explanation OF Primary, Secondary and Reprocessed Tea.
When new green leaf is processed and graded, primary tea is made. Primary tea is the best quality of every tea factory.
But a small percentage of this tea, depending on quality of green leaf, may be of less weight or contains more fiber or may not be in acceptable size. This tea is required to be re sorted. This re sorted tea is called Secondary tea. Due to re sorting, it looses some of its bloom and strength.
Reprocessed tea stands below secondary grade. When green leaf is processed, fiber, unacceptable size, tea balls comes out of Drier and Sorting machines. This is re cut in CTC machines as if new tea is being made including drying and sorting. This is called Reprocessed tea. Since it has been made from the residue of original green leaf, quality goes down. We have given below images with relevent descriptions. Actual product may slightly vary due to limitations of camera. Secondary or Reprocessed tea are size wise same to its primary counterpart. But quality wise lower.
When we finish processing tea, its comes out of Drier in mixed sizes and shapes.
Then it is graded according to its sizes.
Top of the list is B O P L--Means Broken Orange Pekoe Large. Its the biggest size in CTC tea. Good in aroma, Good Orane colour but light in liquor. Since size is big and traditionally most of India is not habituated with this size, so it is not very popular everywhere in India. Genearally, tea gardens always try to to make or totally avoid making BOPL. BopL is mostly used in blending with other tea for its flavour and colour properties. Price wise also cheper than other smaller grades.
B P S--Means Broken Pekoe Sauchong.
it comes after B O P L in size but taste generally better than B O P L. it is also not easy to to differentiate between BOPL and BPs, size wise, even for an expert. Like BopL, BPs is also not extensively used.
It gives better colour, better liquor and sufficient aroma in comparison to B O P L. Like BOPL, it is also mainly used to in blending.
We get it through 8 holes per inch in a mesh.
B O P--stands for Broken Orange Pekoe.
It comes after B P S in size but taste generally better than B O P L. It is also popular with domestic as well as internation household buyers.
It gives better colour, better liquor and sufficient aroma in comparison to BPs.
We get it through 10 holes per inch in a mesh.
Bop is more popular than its bigger grades.
B O P S M--is shortform for Broken Orange Pekoe Small. Size wise it comes after Bop. It contains both liquor and flavour. Actually more flavour. It is very popular among household consumers. Since its size is well accepted by consumers, a prospective wholealer can solely sell this grade. Those who prefer decent tea, neither strong nor mild with tea aroma, like BOPsm. For getting B O P S M, you require 12 holes per inch in a mesh.
B P-- Means Broken Pekoe.
Size wise its an ideal size, appearance eye pleasing, contains both strong liquor and nice aroma. In all tea grades, BP comes exactly middle size. it is Very popular among household consumers and high end hotels. Normal tea consumers, who take tea with milk, BP is preferred by them.
To get B P, you need 14 holes per inch in a mesh.
B P Sm-- Means Broken Pekoe Small.
Smaller than B P, contains stronger liquor, popular among big hotels and households. Here you require 18 holes per inch in a mesh. You may use it for your Brand
OF--Short form of Orange Fannings. Size is eye pleasing like B P and B P Sm. Contains strong liquor.
Popular with all hotels, restaurant, tea stalls etc and to some extent among domestic consumers.
For making OF grade, your mesh must have 22 holes per inch. OF taste stronger and looks good also. You can even start your Brand with OF.
P D-- P D stands for Pekoe Dust. is above Dust and below PF and OF- size wise.
Popular with tea stalls, restaurant due to its strong and quick liquor. Generally P D gives nice coloured tea.You require 26 holes per inch in your sorting mesh.
Dust-- You understood it clearly. It is simple and pure tea dust. The final and smallest size. It gives strongest colour and liquor. Very popular with tea stalls. But should be used with other grades. Otherwise, it resembles more like dirt.
to get this smallest sizes, you need to use 30 holes per inch mesh.
We call B O P S M, B P and B P S M are premium grades and these are costlier than other primary grades. Secondary grades are described with same name but with an 1 at the end. Like B P1, B O P S M1, of1. Secondary grades contains all characteristics of primary grades but in lesser quantity. For example B P1 will look similar to B P but B P1 will be somewhat brownish. It will contain less liquor, less aroma and also less bloom. Similarly all secondary grades are similar sizes of theirs primary counter part but contain less qualities then the primaries.
Assam tea buying time.
Assam tea is full of all good things that you can think of. One of these many good things of Assam tea is that it is being taken by all and at all time of the year and at all time of the day and almost all time of night. This, along with other numerous healthy benefits of Assam tea including low price, it is very easy to market and sale. You can buy it throughout the year and sell it throughout the year. But if you want to buy it directly from tea plantation, best time to start buying it from the month of end March. New tea season for Assam, Dooars and Darjeeling tea starts in the month of March. New fresh leaves start coming up after couple of months of lull period. New eye soothing soft leaf comes out and one can make good tea with those tender leaf. Then come second flush at june to August. Both Assam, Dooars and Darjeeling, Tripura Tea gardens makes their best tea during this second flush. Please check Assam Tea for more information. After August, quality of Assam, Tripura or Darjeeling Tea start coming down. Strength of liquor and brightness come down. Then you require more quantity, may be one full spoon tea leaf for making a cup of quality tea.
Generally, Assam tea quality remains Best to Better till November. During December it comes down to Good quality. From January onward, it becomes avarage quality and low priced. So best time to buy Assam tea is March to is half of December. But if you want cheap Assam tea for mixing with better quality Assam tea then January to February is the best time.
Establishing your Brand You have bought good quality tea, made your own blend and brand. Now you require to establish it in your area. Even when your tea is better, price is lower and your brand looks attractive in comparison all other established brands in your area, you will face tough competition. You may find half of the shop keepers are not showing interest in your tea. Advertisement, gift scheme to to shop keepers, gift to consumers and visibility of your product accross your area of marketing operation will greatly boost your sale. It is an established fact that IF any one of us, uses any product for 3 weeks consecutively, it becomes our habit. Your prospective buyers are habituated with other brands. So now you make them buy your tea brand of 250 gram pacckets at least twice by giving them gifts and schemes. For exmaple if your buyers return four empty 250 gram packets your tea brand, you may give them one 250 gram packet free. Or any other similar offers, so that your buyers buy it constantly.
When your buyers buy it constantly, your tea brand is established for years, even may be generations.
Simple Procedure of Tea Testing with our tea samples You know that we give 50 gram samples of each grades that you order. This sample is sufficient to make 20 cups of tea. If are a an experienced tea taster, then you follow your normal procedure of testing tea. But if you are not an experienced tea taster then follow this procedure. Just you are required to make a cup of tea exactly as you always make a cup of tea. Only these points should be followed. 1. Put water the in heating bowl after measuring it. Everytime you are required to put same quanity of water in the bowl for testing tea. Boil the water for a fixed time. Everytime, you will boil water for same time. Now put 2 and half gram of tea and boil it for, again for a fixed time and note down the time. Alternatively, you can measure your home tea and put equal quanity of our tea in bowl. If you mix milk and sugar, mix it as you always mix it with your preferred tea. Just remember, quantities of milk and sugar must be same in all cups of tea. Now taste it and mark it in a scale of 1 to 10. It will be better to make your regular cup first and then make other cups one after the other. You do not require to drink entire cup of tea, just take 4/5 sips then rate it in a piece of paper. One very important point, you must remember that generally all packet tea uses 4/5 grades to make their blend. So when you test the sample, you are also required to make similar blend to do a fare and correct test of sample tea. You will find established tea testing procedure in our EXPERT page.
Space Required for Tea Stocking Space is costly every where, particularly in any city of India. So lets find out how much space you require to staock your tea. Generally a 35 kg bag size is height 24 inces, breadth 9 inches and length 29 inches that is .75 Foot x 2 feet and 2 and half feet. So if you keep the bag lying on the floor, it will take up 2.5 feet x 2 feet and upwards .75 foot. So if you lay 4 bags side by side, it will cover 10 feet. So if you make seven rows, you can keep 28 bags or approximately one thousand KG. Upwards it will cover .75 foot x 7bags = 5.25 feet and breadth will cover 2 running feet. So if roof of your wholeselling office is 11 feet and length is of over 8 feet, you can keep 2000 kg of tea on one side of the room. But, we advice to keep it in two raows, so that it does not fall, if stacking was stright. On the basis of this calculation you can correctly estimate, how much tea you can keep in stock.
How to Grow Tea Business in 2020 First non availability of rain in March 2020 then Covid 19 attack and subsequent lock down of tea industry made 110 milion kg of tea loss. That is approximately Rs 1200 crore loss.
This loss will go up further for tea industry. But this low production and high demand have increased the prices to 50 to 100%. If we were selling tea at this time at Rs 160 in 2019, now we are selling at Rs 230 in 2020. Brokers are even ready to sell very low quality old tea in auctions, because buyers are opting for affordable price sacrificing quality.
Only bright side of this bad situation is that if somehow you can buy some tea from auction or preferably from tea garden even at above than resonable price, selling at a premium price wont be a problem. But how a small or new wholeseller or an small brand owner survive in this high priced market. Two nice ways are there for you. Buy at a higher price and sell it at higher price. That way you do not sacrifice your quality and your loyal buyers stick to your brand.
But Covid 19 adversely effected other industries also. Crores of people has become unemployed or facing severe income crunch. They may not be able to buy your brand at a higher price. In that case they will opt for next cheaper brand.
In such situation, best option for you is to sacrify your quality. Say if you were blending 50% good quality tea and 50% low quality tea, now depending on the price, make it 30% or less good quality tea and 70% or more low quality tea.
Only precaution you must take that look of the blend should look as farthest as possible your regular blend. Say if you are generally using blend of blackish BOP + brownish OF and blackish PD, better to maintain similar combination.
Your buyers are habituated with the look of your blend. So if they find it atleast, similar, they will accept change of quality.
Best of luck.