Critical Analysis of Tea Industry in Bangladesh from Managerial Economic Perspective
1. Introduction
1.1 Origin
This project proposal titled “Critical Analysis of Tea Industry in Bangladesh from Managerial Economic Perspective” has been proposed for Dr. A. K. M. Saiful Majid, Course Instructor, Managerial Economics, as a partial requirement of the course. 1.1. Scope
We have used this study to find out present situation of the tea market which includes the demand supply equilibrium, demand supply scenario, market structure, problems and potentialities of the distribution channel.
Furthermore this study analyzed the government policies regarding the tea industry of the country along with trade policies, annual budget provision of the market and price controlling of the government etc. 1.2. Background
Tea is a major cash crop of Bangladesh, as well as one of the most popular drinks. It is also one of the major exportable commodities of the country. In the form of employment generation, earning foreign exchange and balancing trade deficit it plays an important role Figure: Major tea producing regions in Bangladesh in the economy. The industry employs about 1,50,000 ethnic people (with about 5,00,000 dependents) living in far flung areas of the country. A total of 163 tea gardens produce approximately 60 million kilograms of tea annually (Bangladesh tea Board). Roughly about 25% all tea produced in the country are exported annually to countries like Pakistan, UAE, Kazakhstan, Uzbekistan, India, Poland, Russia, Iran, and UK, while the rest are sold in the local market. The total export earning is around 20 million US dollars. While the share of total foreign currency earning from tea has dropped substantially in recent years, the demand for tea in the local market has gone up significantly in the same time period. In last 10 years demand of tea had been increased quite sharply in local market taking the tea consumption to 48
1.1 Origin
This project proposal titled “Critical Analysis of Tea Industry in Bangladesh from Managerial Economic Perspective” has been proposed for Dr. A. K. M. Saiful Majid, Course Instructor, Managerial Economics, as a partial requirement of the course. 1.1. Scope
We have used this study to find out present situation of the tea market which includes the demand supply equilibrium, demand supply scenario, market structure, problems and potentialities of the distribution channel.
Furthermore this study analyzed the government policies regarding the tea industry of the country along with trade policies, annual budget provision of the market and price controlling of the government etc. 1.2. Background
Tea is a major cash crop of Bangladesh, as well as one of the most popular drinks. It is also one of the major exportable commodities of the country. In the form of employment generation, earning foreign exchange and balancing trade deficit it plays an important role Figure: Major tea producing regions in Bangladesh in the economy. The industry employs about 1,50,000 ethnic people (with about 5,00,000 dependents) living in far flung areas of the country. A total of 163 tea gardens produce approximately 60 million kilograms of tea annually (Bangladesh tea Board). Roughly about 25% all tea produced in the country are exported annually to countries like Pakistan, UAE, Kazakhstan, Uzbekistan, India, Poland, Russia, Iran, and UK, while the rest are sold in the local market. The total export earning is around 20 million US dollars. While the share of total foreign currency earning from tea has dropped substantially in recent years, the demand for tea in the local market has gone up significantly in the same time period. In last 10 years demand of tea had been increased quite sharply in local market taking the tea consumption to 48
References: 1. Principles of Microeconomics by Gregory Mankiw (4th ed.2006) 2 (ORDINANCE NO. XXXVIII OF 1977) [29th July, 1977] (7) [Omitted by section 2 of the Tea (Amendment) Ordinance, 1986 (Ordinance No. XV of 1986).]