History Tea was introduced in Mauritius by Father Galloys in 1760. However, under French rule tea cultivation was not a priority and ever Pierre Poivre kept it as a musuem plant. In the 19th century, Sir Robert Farquhar, Governor of Mauritius, encouraged tea cultivation on commercial scale. Plantations were encouraged and reached up to 190 hectares by the end of the century.
After the second world war, the Governmenet started to encourage the growth of the industry and launched the Tea Smallholding Scheme and the Tea project Planters' scheme in 1955.
The aim of the Smallholder Project was to establish tea plantations on crown lands for eventual long term leasing at a nominal rental rates to smallholders grouped in tea Co-operative societies. Tea villages were established by the Government in the tea areas. The Project Planters' Scheme was aimed at encouraging large planters to establish tea plantations on crown lands under a package of incentive granted by the Government.
In 1960, the Government decided to further intensify tea development in the superhumid zones not suitable for sugar-cane cultivation. A Tea Development Authority was created and by 1975, 1234 additional hestares of tea were planted. There was low interest from TDA workers to become smallholders. It was only in 1984 when the price of tea increased on the world market that it was possible to lease out all the tea plantations. The Project Planters' Schemes encountered many difficulties and were taken over by the TDA in 1974 and subsequently absorbed into the smallholders scheme.
In July 1986, the Mauritius Tea Factories Co Ltd was created to take up responsibilities for tea manufacture and marketing.
Critical Situation in Late Eighties
In the late eighties the situation in the Tea Sector was gloomy, largely because of low international price and the rapid increase in the local production cost. The Government subsidised the Sector heavily to ensure its survival, a situation which the Mauritian economy could not bear in the long run.
Three-year Rehabilitation plan with the cooperation of the Government of India
To redress the unhealthy situation in the Tea Sector, the Government approved a 3-year Rehabilitation Plan prepared by an Indian Consultant Team. This became operational in 1991-92. The primary objective of the plan, financed jointly by the Government of india and Mauritius was to improve efficiency at all levels - production, manufacturing and marketing and thus secure the Industry's viability and profitabilty. The rehabilitation plan did not succeed.
Agricultural Diversification of Public Tea Sector
In 1994, following a report on the future of the Pubic Tea Sector, Government took the decisions to diversify the public tea sector principally to sugar cane. The project started in 1995 and was completed in 2000. Some 2500 hectares of tea were converted into sugarcane. The tea smallholders concerned benefited from a package of incentives including free land preparation, financial assistance from time of uprooting of their tea plot to harvest of sugar cane, provision of infrastructural facilities - infield roads, drains and culverts and soft plantation loan from the Development Bank of Mauritius.
Tradition and Culture
Drinking of tea is well anchored in Mauritian tradition. The average consumption of tea in the island is one kilo per head. The average Mauritian drinks black tea. Some Mauritians of Chinese origin consume green tea.
The price of tea is significantly cheaper compared to coffee. With the increasing awareness of the population to adopt dietary habits that promote health, it is expected that the average Mauritian will continue to drink tea as more and more scientific evidence is being acquired to confirm that tea is good for health, its consumption can inhibit cancer and reduce the risk of development of heart diseases.
Present Situation
Some 1414 planters cultivate an area of 709 hectares under tea. The local production of tea annually range from 1300 to 1600 tonnes. Three tea factories - Bois Cheri, Corson and La Chartreuse are in operation. The average local consumption is 1500 tonnes annually. This production is domestic oriented. Tea is no longer exported in a significant quantity meaning that it can no longer be considered as a foreign exchange earner. The average quantity of tea exported is around 40 tonnes annually. This has been the case during the past four years. Income derived from these exports has been around Rs 6 M. We cannot compete with the major tea producing countries in the world such as India, China, Sri Lanka, Kenya and Indonesia as our cost of production are high and the quality of tea produced locally falls in the category of low medium which is generally used as a fillre in the tea blending process.
Liberalisation
Government's policy which is implemented by the Tea Board is generally not to allow the importation of black tea. Importation of tea is allowed for the following:
(i) Green tea produced in negligible quantity by Bois Cheri Tea Estate for duty free shop and which cannot satisfy the local demand. 6172 kgs were imported in 2006 and 6528 kgs in 2007.
(ii) High quality teas meant for consumption by tourists in high class hotels. 1204 kgs were imported in 2006 and 2854 kgs in 2007.
(iii) The importation of 2.5% of our local consumption of tea from COMESA solely for blending purposes. This amounts to some 33 tonnes annually.
Impacts of liberalisation
The implications for allowing the import of black tea has been assessed as follows:
Allowing import straightaway would imply:
(i) instant death of the local industry;
(ii) affecting the 3000 families involved in tea cultivation.
The tea industry cannot be looked only from its economical perspectives but also from the social angle. Economically we would gain from importing from elsewhere, but socially we cannot neglect the fate of some 10,000 persons. (Assumption is made that each of the 3000 families mentioned above comprise three menbers).
On the other hand, Mauritius being signatory to WTO and COMESA, we have to abide by the rules. These provide safeguard clauses to protect the local industry and vulnerable groups. However, we cannot claim derogation until we have allowed importation and an assessment of the extent of injuries.
Conclusion
The future of the tea industry is bleak. Its present survival is due to the fact import of teas is not allowed. This is against the concept of trade liberalisation as preconised by the World Trade Organization and COMESA.
