TEA AND SUGAR EXPORT: ECONOMY

NEWS: India’s tea, sugar exports raise sustainability concerns at home

 

WHAT’S IN THE NEWS?

India's agricultural export boom, particularly in tea, sugar, and other commodities, raises concerns about sustainability, with challenges related to water usage, biodiversity loss, labor conditions, and the need for eco-friendly practices. A shift toward sustainable crops like millets could help address these issues.

 

Agricultural Exports in India: Key Points

  • Export Growth: India's agricultural exports grew significantly, reaching $53.1 billion in 2022-23 from $8.7 billion in 2004-05, ranking 9th globally in agricultural exports.
  • Major Exports: Key exports include rice, wheat, sugar, tea, spices, and cotton. Major markets are the US, Bangladesh, UAE, Nepal, and Malaysia.

 

Sustainability Concerns:

  • Environmental: Issues include biodiversity loss, soil degradation, and water overuse, especially for crops like sugarcane and tea.
  • Economic: Dependency on a few high-water-demand crops can affect long-term profitability.
  • Social: Concerns over labor conditions in tea and sugar industries, with many workers facing low wages and unsafe environments.

 

Tea Industry in India:

  • Production: India is the 2nd largest tea producer, with 188.76 million kg exported in 2022, valued at $641.34 million.
  • Sustainability Issues:
  • Human-wildlife conflicts near forest areas where tea is cultivated.
  • Heavy pesticide use, causing health risks and environmental harm.
  • Poor labor conditions, affecting mostly women workers.

 

Sugar Industry in India:

  • Production: India is the world’s 2nd largest sugar producer, vital for rural employment.
  • Sustainability Issues:
  • High water demand for sugarcane, impacting groundwater resources.
  • Ecosystem conversion in regions like Maharashtra and Karnataka.
  • Labor challenges with long hours, low safety standards, and heat exposure.

 

Millets as a Sustainable Alternative:

  • Benefits: Drought-resistant, low resource requirements, and support soil health.
  • Growth in Exports: India’s millet exports reached $75.45 million in 2022-23.

 

Way Forward:

  • Environmental Protection: Better water use, conservation, and chemical management.
  • Labor Rights: Improve labor standards in tea and sugar sectors.
  • Promoting Millets: Support millet cultivation as a sustainable alternative.
  • Economic Policies: Ensure benefits reach rural communities sustainably.