Effective application of modern management principles will help restore tea industry’s lost glory in the country. Explain (200 Words)
Refer - Business Line
Enrich the answer from other sources, if the question demands.
IAS Parliament 2 years
KEY POINTS
· The Indian tea industry has lost much of its earlier sheen. Its profitability index which at one time stood at around 10.4, the highest amongst all industries in India, is now in the negative zone.
· The industry’s labour costs form 60-65 per cent of the total costs. Wages are determined either by bipartite or tripartite agreements.
· Prices of other inputs such as fuel, fertiliser, electricity, and port charges are government controlled, leaving no room for manoeuvrability.
· The tea industry must also deftly deal with the fast changing global geopolitical scenario. Studying the various management principles and applying them to the tea industry is of utmost importance.
· Qualitative goal is to be the leader in the market. While translating these goals, companies have to identify broad contours of strategy, investment, and optimum utilisation of all resources.
· It is a risk taking, dynamic, creative and innovative function. Need for an effective management planning and control system is paramount for the ailing tea industry. Designing the management system for a tea company is not difficult.
· The Indian tea industry is faced with numerous problems of timely availability of inputs, power, labour, capital, low return on investment. These have impacted the tea industry and trade, threatening their sustainability.
