Tea is manufactured from Camellia sinensis leaves, which grows in a variety of areas across the world. Tea originated in the past in China, where it was initially discovered about 5,000 years ago. It is a key agricultural product that is cultivated in many countries, such as Bangladesh, Sri Lanka, China, India, Kenya, Vietnam, Indonesia, and Japan. Based on its manufacturing methods, Tea is classified into different kinds, notably black tea, green tea, white tea, oolong tea, and Pu-erh tea. Every tea has unique tastes, fragrances, and therapeutic properties. The tea business in India contributes significantly to the economics of rural agricultural regions and offers employment to millions of people.

Himachal Pradesh started planting tea in the middle of the 19th century, while it was a British colony. Dr. Jameson, the North Indian Botanical Gardens' superintendent at the time, founded the first profitable plantation in the Kangra region in 1849.The Kangra Valley of Himachal Pradesh is renowned for its superior tea production. The distinctive flavour and fragrance of Kangra tea, which has been accorded a Geographical Indication by the European Union, are a result of the region's unique climate, elevation, and soil fertility.

Himachal Pradesh has 2,310 hectares of tea plantation area, having a yearly production of 8-10 lakh approximately. The major tea-growing regions are namely, Palampur, Dharamshala, Baijnath, and Joginder Nagar. These areas are recognized for manufacturing black orthodox, green tea and other kinds of tea. In 2021-22, over 4000 kg of Kangra tea were exported primarily to Germany, Britain, Russia, and France, with an aim of 20% export in upcoming years.

Pratap Dinesh, Sankhian Anurag (2010) completed study on “Status and challenges of Kangra valley tea industry -Himachal Pradesh” with aims to analyse the status and challenges faced by the Kangra tea industry. The study observed that cooperative management practices could not be properly maintained by cooperative tea manufactures, as well as the tea business suffered from market challenges, resulting in a fall in tea production. Verma Parmod (2010) undertaken study on “Economic analysis of Himachal tea industry-A study of Co-operative factories and tea planters” with aims of analysis of the present status, profitability of tea cultivation, manufacturing and the problems faced by the growers and manufacturers. The study results revealed that there is decreasing trends in income and productivity and tea growers' key restraints were high labour costs, labour availability, and a lack of awareness about loan availability, whereas tea cooperatives were distant marketing, non-remunerative prices, a lack of promotional campaign, insufficient funding, and high manufacturing expenses. Dogra, Dr. Reena (2018) conducted research on “Problems and Prospects of Tea Industry in Himachal Pradesh” with objectives to analyse the growth of production, area, and yield of tea and examine the problems faced by tea industry of Himachal Pradesh. The study discovered that the tea sector in Himachal Pradesh has been struggling for survival for a long time, with continued declines in production, area, and productivity in tea production. In addition, the tea business has encountered a number of problems that have hindered its expansion. Kumar Virender, Jamwal Neha, and Sharama Divya (2019) carried out research on “Economics of tea growing in Himachal Pradesh” with aims to examine the comparative economics of tea production on small and large tea estates. The study revealed that the economic feasibility of tea production was higher in estates than in small farms, owing to mechanization of various activities and economies of scale. Furthermore, production of prepared tea was more profitable on estates than on small farms. In addition, labour days spent, tea area, and tea cultivation experience all had a favourable and significant impact on tea production. Goswami, Aakanksha (2022) completed study on “A study on perceptions of tea growers on organic tea cultivation in Palampur Tehsil of District Kangra in Himachal Pradesh” with the aims of studying the perceptions and constraints of tea growers. The study revealed that the major constraints faced by the farmers were the unavailability of proper storage, lack of skilled labour, and lack of awareness. Sharma Damini (2023) done study on “Participation of rural women in tea cultivation: A study of Kangra District of Himachal Pradesh” with purpose to study the participation of rural women in tea cultivation. The study concludes that decision-making empowerment is the most common kind of women's empowerment, followed by social empowerment, economic empowerment, psychological empowerment, and political empowerment. Kaushal Neeraj and Sharma Manoj (2023) executed study on “Marketing and Demand Strategy for Tea Grown in Himachal Pradesh” with attempt to analyse the marketing and demand strategy for tea growers in H.P. The study demonstrated that the majority of tea growers promoted tea leaves and were not always paid a fair price. The majority of tea growers set up sales exhibits at tourist attractions, local fairs, and online advertising via social media.

RESEARCH GAP

The various studies have explored the status problems, economics of tea cultivation, perception of tea growers as well as marketing tactics, and the involvement of rural women in the tea industry of Himachal Pradesh. It is clear that from existing studies, tea industry of Himachal Pradesh is being faced numerous issues, including diminishing productivity, inadequate cooperative administration, market restrictions and financial sustainability issues. Despites these issues, Himachal Pradesh's tea industry has significant potential for growth, with a mix of ideal climatic conditions, rising demand of organic tea, and governmental assistance. Moreover, no such studies have been previously conducted in Himachal Pradesh related to present topic.

Need and Scope of Study

The tea industry of Himachal Pradesh employs thousands of peoples in rural areas, boosting its reach can create new job opportunities and strengthening local and national economies. Exploring the tea industry's potential is vital for regional growth, job creation, and competitiveness worldwide. The present study is concerned with analysing the strengths, weaknesses, opportunities, and threats as well as exploring the unexplored potential of Himachal Pradesh's tea industry.

Objectives of the Study

The objectives of the study are as follow:

• To examine the growth potential of tea industry in the state of Himachal Pradesh.
• To analyse the strength, weakness, opportunities and threats of Himachal Pradesh Tea Industry.

• Study Area: The study regions are located in Himachal Pradesh's Kangra and Mandi districts, which include specified Tea Manufacturers/Factories.
• Information and Data Source: The study is based on primary and secondary data and information. Primary data were obtained by questionnaires filled out by respondents and formal discussion interviews were also conducted with respondents. Secondary data and information were gathered from Tea Factories, Himachal Pradesh Agricultural Department's (Chaye Bhawan Palampur), authorized website of the Indian Tea Association, newspapers, and various published source of information.
• Sampling Design and Method: The universe under the present study were registered tea growers and Tea Factories of Himachal Pradesh. The study's sample size consists of 472 tea growers and 28 tea factories. The simple random sampling technique was used in this study to ensure that each respondent had an equal chance of being chosen.
• Statistical Tools: The data in study were analysed using Descriptive Statistics, Chi- Square Test, Moving Average and Line Charts etc.

Data Analysis and Interpretation

The table no. 1 shows moving trends in tea production of Himachal Pradesh and India from 2015-2023. During 2015-2023, tea production of H.P and India shows increasing trends in production. Moving average trends of Himachal Pradesh and India tea production reveals a growth of around 18.91% and 13.47% throughout the period 2015-2023. The study reported that rise in tea production is likely due, improved tea farming practices, technological development & innovations, supporting government policies, favourable weather conditions. All of that have gave enhanced productivity and yield gains of tea.

Table No. 1 Moving Average of Tea Production in Himachal Pradesh and India During Period 2013-2023

Source: Indian Tea Association and Technical Office Tea Department of Agriculture Palampur, Distt. Kangra (H.P)

The highest tea production in Himachal Pradesh and India were reported as 1167 (thousand kg) and 1393660 (thousand kg) respectively in 2023. The lowest tea production 860 (thousand kg) reported in 2015, with the exception of minimal decreases in 2021 and 2022, tea production rose significantly after 2018 in H.P. The tea production of India shows increasing growth from period 2013-2019, However, tea production in 2020 were 1257530 (thousand kgs), which arise due to COVID-19 pandemic on non-availability of workers.

Source: Indian Tea Association and Technical Office Tea Department of Agriculture Palampur, Distt. Kangra (H.P)

The figure no. 1.1 shows moving trends in tea production of Himachal Pradesh. From period 2015-2021 tea production of Himachal Pradesh moving significantly, thereafter minimal decreases in tea production in 2022, but tea production rose again in 2023.

Source: Indian Tea Association and Technical Office Tea Department of Agriculture Palampur, Distt. Kangra (H.P)

The figure no. 1.2 depicts moving trends in tea production of India. There is continuing increasing trends reported in tea production of India during 2015- 2019, thereafter period minor decrease in tea production, but from 2023 tea production increase again.

Table No. 2 Analysis of Strengths in Tea Industry of Himachal Pradesh

Source: Field Survey (Compiled through Questionnaire)

Note: Figures in brackets show percentages of the rows total

Note: X=Mean, σ =Standard Deviation, Sk = Skewness, Ku= Kurtosis, χ² = Chi- square

SD = Strongly Disagree, D = Disagree, N = Neither agree nor disagree, A = Agree, SA = Strongly Agree

The table no. 2 shows the respondents opinion about strengths of Himachal Pradesh Tea Industry. 60.4% respondents are strongly agreed with factor Premium quality of tea” with highest mean value of 4.264, followed by 58.6% are agreed with factor “Suitable climate conditions” with second high Mean value (X=4.218) and 53.2% respondents are strongly agreed with factor “Recognition of tea at globally” with third highest Mean value (X=4.184). The factor “Availability of fertile land” has least mean value of 3.852 and 46.4 % respondents are agreeing with this factor. The factor “Recognition of tea at globally” (σ = 1.113) had lowest variability in responses, that reveals most respondents are largely agreed with “Recognition of tea at globally” factor is a strength of tea industry in H.P. The factors "Availability of fertile land" (σ = 1.460) and "Diversified tea products" (σ = 1.457) had the highest variability in responses, that indicates differing opinions on these aspects. All factors have negative values of skewness, that reveals the distribution is left skewed and most respondents agreed or strongly agreed with all these factors. Factors “Premium tea quality (1.644), Suitable climate conditions (1.604) and Recognition of tea at globally (0.551) have the positive value of kurtosis (Ku > 0), that shows distribution is Leptokurtic curve and most factors indicate strong agreement with the tea industry’s strengths, with only minor variations in responses. All χ² values are highly significant, having (p-value = 0.000), confirming that the tea industry has significantly strengths.

Table No. 3 Analysis of Weakness of Himachal Pradesh Tea Industry

Source: Field Survey (Compiled through Questionnaire)

Note: Figures in brackets show percentages of the rows total

Note: X=Mean, σ =Standard Deviation, Sk = Skewness, Ku= Kurtosis, χ² = Chi- square

SD = Strongly Disagree, D = Disagree, N = Neither agree nor disagree, A = Agree, SA = Strongly Agree

The table no. 3 explains the Descriptive statistical analysis of respondents’ views regarding weaknesses of Himachal Pradesh tea industry. A majority 51.8% respondents strongly agree that “Poor communication with the market” is a significant weakness. The factor “Lack of local market for selling tea” has lowest mean score (X= 3.304), indicating 31.8% respondents are strongly agree and 25.4% are strongly disagree with factor. The high standard deviation (1.620) suggests variability in responses. 79.2% respondents strongly agreeing that “Limited access to auction centres” is a major challenge with high Mean value (X=4.590) and low variation (σ = .950) in responses. Almost 48.8% of respondents agree, while 37.6% strongly agree, indicating a strong concern. The moderate standard deviation suggests responses are clustered around agreement. 83.4% respondents agreeing or strongly agreeing, this factor is another major concern. Negative skewness confirms that most responses fall in the agreement category. 63% respondents strongly agreeing and only a small fraction (2%) strongly disagreeing. The strong negative skew and significant chi-square value reinforce the severity of this issue. This factor “Production in small volume” has a relatively lower mean score (X=3.696), indicating moderate concern. While 42.4% strongly agree, a considerable percentage (12.6%) strongly disagree. All chi-square values are highly significant p-value (0.000< 0.05), confirming that the weaknesses impact the tea industry significantly.

Table No. 4 Analysis of Opportunities Available for Himachal Pradesh Tea Industry

Source: Field Survey (Compiled through Questionnaire)

Note: Figures in brackets show percentages of the rows total

Note: X=Mean, σ =Standard Deviation, Sk = Skewness, Ku= Kurtosis, χ² = Chi- square

SD = Strongly Disagree, D = Disagree, N = Neither agree nor disagree, A = Agree, SA = Strongly Agree

The table no. 4 presents the views of respondents about various opportunities have for Himachal Pradesh tea industry. 62.8% respondents strongly agreeing and 32.4% agreeing that the demand for high-quality tea is increasing. The high negative skewness (-2.412) and kurtosis (6.924) suggest that most responses are concentrated towards strong agreement. 70.4% respondents strongly agreeing that factor “High tea consumption” is increasing, lowest standard deviation (0.706) suggests a high level of agreement among respondents. The extremely high negative skewness value (-2.792) and kurtosis (9.993) confirm that most respondents view this as a key opportunity. The factor “Tea tourism” presents a strong opportunity for the Himachal Pradesh tea industry, with 60.6% respondents strongly agreeing and 27.4% agreeing, the moderate standard deviation (1.089) suggests slight variations in responses. The factor “Demand of organic and value-added tea” has lower mean value (3.934) indicating moderate agreement, while 49.8% respondents strongly agree with this factor. The negative skewness (-.964) and low kurtosis (-.556) suggest that responses are more evenly distributed across the agreement spectrum. 53.2% of respondents agree, while 27.4% disagree, with factor “Tea export opportunities” The lowest mean score (3.21 0), indicating a mixed response, suggesting that many do not see tea exports as a strong opportunity. The low skewness (-.488) and kurtosis value (-1.165) indicate a more balanced spread of opinions. The factor “Employment opportunities” has a moderate mean (3.648), with 34.6% respondents agreeing and 32.4% strongly agreeing that the tea industry offers employment opportunities. The moderate skewness (-.604) and kurtosis value (-.993) suggest that responses are spread across different levels of agreement. The P-value (.000 < 0.05) of all factors significant, revealed all these opportunities are available for Himachal Tea Industry.

Table No. 5 Analysis of Threats in Tea Industry of Himachal Pradesh

Source: Field Survey (Compiled through Questionnaire)

Note: Figures in brackets show percentages of the rows total

Note: X=Mean, σ =Standard Deviation, Sk = Skewness, Ku= Kurtosis, χ² = Chi- square

SD = Strongly Disagree, D = Disagree, N = Neither agree nor disagree, A = Agree, SA = Strongly Agree

The table no. 5 shows respondents opinion regarding threats in Tea Industry of Himachal 65% respondents strongly agree and 22.4% agree that factor “Climatic changes” negatively impact tea production. The negative skewness (-1.905) and positive kurtosis (2.633) indicate that most respondents strongly agree with this concern. The 74.6% respondents are strongly agreeing and 14.2% agreeing with factor “Pest attacks and disease” is major threat in tea industry. The high mean value (4.476) negative Skewness (-2.175) and Kurtosis (3.505) confirm a strong consensus on this issue. 53% respondents strongly agreeing and 28.6% agreeing with factor tea industry has facing Higher and cut-throat competition in market. The lower negative skewness value (-1.245) suggests some respondents have a neutral or mixed stance. 80.4% respondents strongly agreeing with factor labour shortage is major threat in tea industry. The highest mean value (4.568), high negative skewness (-2.513) and kurtosis (5.068) indicate strong concern with this factor. 43% of respondents strongly agreeing and 28% agreeing factor “Water scarcity” is a moderate threat, with low mean value (3.738), and high variation (1.446) in responses. The supply chain threat is also facing by tea industry, with 47% responders strongly agreeing and 30.6% agreeing. The negative skewness (-1.168) suggests that most respondents lean towards agreement. All threats factors are statistically significant with P-value (.000 < 0.05), revealed tea industry are facing several threats.

The study found that during 2015-2023, tea production of H.P and India shows increasing trends in production. Moving average trends of Himachal Pradesh and India tea production reveals a growth of around 18.91% and 13.47% throughout the period 2015-2023. The study reported that the rise in tea production is likely due, improved tea farming practices, technological development & innovations, supporting government policies, favourable weather conditions. 

The study highlighted that has number of significant strengths in Himachal Pradesh's tea industry that support its expansion and growth i.e., ideal climate conditions, premium quality tea production, worldwide recognition of tea, however, some respondents show modest concern regarding factors such as the availability of fertile land and diversifying tea products. Although, the tea industry has its weaknesses, they are primarily related to market accessibility, lack of government support, and lack of market research & innovation. The most significant weaknesses are limited access to auction centres, a lack of government support, and poor market communication.

The study further found that tea industry offering numerous opportunities for growth and expansion of economy, including high tea consumption, increasing demand of premium quality tea and tea tourism opportunities. Despite of these opportunities, the tea industry being faced several significant threats involving, pest attacks and diseases, labour shortages, climatic changes, high market competition, and supply chain threats.

The study concludes that Himachal Pradesh's tea industry has a significant growth potential due to its ideal environment and high-quality tea production. To extend this growth, it is essential to improve market access, raise government support, spend on research and development activities, and to create effective supply channels. By tackling those issues, the tea sector may capitalize on new opportunities and strengthen its position in both domestic and worldwide markets.

Suggestions

The study suggested that to overcome the weaknesses of Himachal Pradesh tea industry, there should be establish better connections with auction centres and promote direct sales to enhance market accessibility. In order to enhance the competitiveness and sustainability of the tea business, the government should support tea growers and tea factories through provide subsidy benefits, research and innovation funding, and the implementation of key strategies. The development agencies should support innovation and research activities, to create new tea types and value-added tea products. To strengthen  the tea industry of Himachal Pradesh and  mitigate the main threats, produce climate-resilient tea types, improve the condition of soil by organic cultivation methods, provide regular training to tea growers on disease detection and control procedures, produce varied varieties of tea, strengthen product quality and labelling, improve wage and work environment to draw and retain workers, set up rainwater harvesting and water-efficient tea cultivation methods, develop a transparent supply chain network.

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