Growth and Instability Analysis of Indian Tea: An Application of Hazell's Decomposition Model

Abstract

Indian tea is undergoing through a very difficult phase with the parameters studied like growth in the area, production and productivity, which showed marginal growth rate during the study period (1980-81to 2020-21) and a further additional factor of higher instability were observed with respect to yield levels of tea as compared to area and production. The results also revealed that the growth in the export quantity of tea was also very meagre as compared to the export value. Hazell's decomposition model examined the components of change in the production and sources of change in the variance of average production of tea. It was found that the major component that contributed to change in average production was the mean area, along with the major source of change in variance of production was area variance. The results implied that the development of location-specific varieties and suitable scientific crop production technologies are necessary to maintain the product's stability and improve the export share in the international market.