Panchagarh, a district located in the far north of Bangladesh, has rapidly emerged as a significant player in the country’s tea industry. Although traditionally overshadowed by the more established tea-growing regions of Sylhet and Chattogram, Panchagarh has gained recognition for its burgeoning tea sector over the past two decades. The district’s unique geographical and climatic conditions, coupled with government support and enthusiastic local participation, have turned Panchagarh into an unlikely but thriving tea-producing region.
Historical Background
Tea cultivation in Panchagarh is a relatively recent phenomenon, with the first tea gardens established in the late 1990s. The idea to introduce tea cultivation in this northern district was driven by a need to diversify agriculture and utilize the region’s underdeveloped land. The fertile plains of Panchagarh, coupled with its slightly cooler climate compared to other parts of Bangladesh, made it a suitable location for tea production. The success of initial pilot projects led to rapid expansion, and today, Panchagarh is home to numerous tea gardens, both large and small. The establishment of this Tea auction center is expected to significantly benefit the local tea industry, which has grown rapidly since the late 1990s. The northern region, including Panchagarh, Thakurgaon, Nilphamari, Lalmonirhat, and Dinajpur, now produces about 19% of the country’s tea, making it the second-largest tea-producing area in Bangladesh, after Sylhet.
Geographical and Climatic Conditions
Panchagarh‘s geographical location at the foot of the Himalayas provides it with a unique microclimate that is conducive to tea cultivation. The district experiences slightly cooler temperatures and receives ample rainfall, both of which are essential for tea plants to thrive. The soil in Panchagarh is rich in organic matter and well-drained, making it ideal for growing high-quality tea.
The district’s landscape, characterized by gentle slopes and flatlands, is well-suited to the mechanization of tea farming, which is an advantage over the hilly terrains of traditional tea-growing areas. This has allowed for the efficient cultivation and harvesting of tea, contributing to the region’s rapid growth as a tea producer.
Types of Tea Produced
Panchagarh primarily produces black tea, which is the dominant type of tea in Bangladesh. The black tea from Panchagarh is known for its briskness, rich flavor, and bright liquor. Despite being a new entrant in the tea industry, Panchagarh tea has quickly gained popularity both domestically and internationally, thanks to its distinct taste profile and quality.
In addition to black tea, there has been an increasing interest in producing green tea in Panchagarh. The global demand for green tea, driven by its health benefits, has encouraged local producers to diversify their offerings. Although still in its early stages, green tea production in Panchagarh is expected to grow in the coming years, adding another dimension to the district’s tea industry.
Economic Impact and Employment
The growth of tea production in Panchagarh has had a significant impact on the local economy. The tea industry has created thousands of jobs, providing employment opportunities for local communities. Many of these jobs are in the form of manual labor, such as plucking tea leaves, which is predominantly done by women. The industry has also generated income for small farmers who have converted parts of their land into tea gardens, often under contract with larger companies.
The tea sector has also stimulated the development of related industries in Panchagarh, such as processing plants, packaging facilities, and transportation services. This has led to the overall economic upliftment of the district, reducing poverty and improving the standard of living for many residents.
Government Support and Initiatives
The rapid development of tea production in Panchagarh has been supported by various government initiatives aimed at promoting agriculture in the northern regions of Bangladesh. The Bangladesh Tea Board has played a crucial role in providing technical support, training, and financial assistance to tea growers in Panchagarh. The government has also encouraged the expansion of tea cultivation through policies that provide incentives for tea farming and the establishment of tea gardens.
In addition to government support, the success of Panchagarh’s tea industry has been bolstered by the efforts of private entrepreneurs and companies who have invested in the region. These stakeholders have helped to modernize tea production in Panchagarh by introducing new technologies and best practices, which have contributed to improving both the yield and quality of tea produced in the district.
Top 10 Tea Factory in Panchagarh
Panchagarh, located in the northern part of Bangladesh, is known for its growing tea industry, which has been expanding rapidly over the last few decades. The region is sometimes referred to as the “second Sylhet” because of its potential in tea production. Here is a list of some of the notable tea factories in Panchagarh:
- Kazi & Kazi Tea Estate Ltd.
Kazi & Kazi is one of the most popular tea producers in Panchagarh, specializing in organic tea. The company produces a variety of teas, including black, green, and white teas, which are popular both domestically and internationally.
- Tetulia Tea Company Ltd.
Tetulia Tea Company is another prominent tea producer in Panchagarh. The company is named after the Tetulia Upazila in Panchagarh and produces high-quality teas that are gaining recognition in the local market. (Now Stop Production)
- M.M Tea Estate Ltd.
MM Tea Estate is a newer player in the Panchagarh tea sector but has quickly made a name for itself with its quality tea production. The estate produces both traditional black tea and green tea.
- Sallyalionn Tea State Ltd.
A subsidiary of Sallyslionn Tea Estate Ltd., this factory focuses on processing and packaging tea from the company’s estates. It is one of the key facilities in Panchagarh contributing to the local economy.
- Korotoya Bohumkhi (KBSSL) Tea Factory
KBSSL Tea operates a tea factory in Panchagarh, which supports small-scale tea growers in the region. This factory plays a significant role in promoting sustainable tea farming practices.
- Supreme Tea Industry
Supreme Tea Industry is involved in the cultivation, processing, and marketing of tea. The company is focused on expanding its market reach within Bangladesh and abroad.
- Sabuj Argo Tea Industry
Sabuj Agro Tea Industry is another important facility in Panchagarh, contributing to the region’s growing reputation as a tea-producing area. The factory produces a range of teas for the Tea Auction market.
- Morgan Tea Industries
Morgan Tea Industries is a significant player in the Panchagarh tea sector, producing CTC Black teas that cater to Bangladesh Tea Auction markets.
- Maitri Tea Industry
Located in the Sadr Upazila of Panchagarh, is known for its production of quality CTC black tea. The factory sources tea leaves from its own estate as well as from local farmers.
- Uttara Green Tea Industry
Uttara Green Tea Industry is another notable tea producer in Panchagarh. It processes and packages tea that is Tea auction market in Bangladesh, contributing to the region’s economic development.
These factories are part of the growing tea industry in Panchagarh, which has been benefiting from the region’s favorable climate and soil conditions. The tea produced in Panchagarh is increasingly gaining recognition for its quality, and the region is poised to become an even more important player in Bangladesh’s tea industry in the coming years.
Tea Auction in Panchagarh
The recently inaugurated tea auction center in Panchagarh marks a significant development in Bangladesh’s tea industry. This center, the third of its kind in the country after Chattogram and Sreemangal, was launched to ensure fair pricing for tea farmers in the northern region. Prior to this, tea growers in Panchagarh and surrounding districts had to bear high transportation costs to sell their tea in distant auction centers, which often resulted in lower profits.
List of Tea Brokers in Panchagarh
The auction center, officially opened on September 2, 2023, by Commerce Minister Tipu Munshi and Tea Bord Chairman Major General Ashraful Islam NDC, PSC held its first online auction at the Panchagarh. Running auctioneer Three Tea Brokers in Panchagarh.
- Indigo Brokers Limited
- Himalaya Brokers Limited
- Mohananda Tea Brokers Limited
The auction featured participation from three brokers and 25 bidders, with over 113,000 kilograms of processed tea on offer. The highest price reached Tk 212 per kg, indicating a strong start for this new market venue.
Challenges Facing Panchagarh’s Tea Sector
Despite its rapid growth and success, the tea industry in Panchagarh faces several challenges that could impact its future development. One of the main challenges is the threat of climate change. Changes in weather patterns, such as irregular rainfall and temperature fluctuations, could affect tea production in the region. As tea cultivation is highly sensitive to climatic conditions, any significant changes could lead to reduced yields and lower-quality tea.
Another challenge is the need for continued investment in infrastructure and technology. While Panchagarh has made significant strides in modernizing its tea industry, further investment is needed to ensure that the region can continue to compete with more established tea-producing areas. This includes improving the efficiency of tea processing, expanding access to markets, and enhancing the overall quality of tea produced in Panchagarh.
Additionally, the tea sector in Panchagarh must address issues related to labor rights and working conditions. As the industry grows, it is important to ensure that workers are treated fairly and have access to decent wages, healthcare, and education. Ensuring the welfare of workers is not only a moral imperative but also crucial for the long-term sustainability of the tea industry in the region.
Future Prospects
The future of tea production in Panchagarh looks promising, with opportunities for further growth and development. One of the key areas of potential is the expansion of organic tea production. As global consumers become more health-conscious and environmentally aware, there is increasing demand for organic products. Panchagarh’s relatively unspoiled environment makes it an ideal location for the cultivation of organic tea, which could fetch higher prices in both domestic and international markets.
Another opportunity lies in the diversification of tea products. By developing new tea blends, flavored teas, and ready-to-drink tea beverages, Panchagarh can cater to a wider range of consumer preferences and increase its market share. Additionally, the growth of the e-commerce sector presents an opportunity for Panchagarh’s tea producers to reach new customers beyond Bangladesh’s borders.
To fully realize these opportunities, continued support from the government and private sector will be essential. Investment in research and development, training, and infrastructure will help to ensure that Panchagarh’s tea industry remains competitive and sustainable in the face of future challenges.
Conclusion
Tea production in Panchagarh represents a remarkable success story in Bangladesh’s agricultural sector. From its humble beginnings in the late 1990s, the district has rapidly emerged as a significant player in the country’s tea industry, thanks to its favorable geographic conditions, government support, and the dedication of local farmers and entrepreneurs.
As Panchagarh continues to grow as a tea-producing region, it has the potential to play an even greater role in Bangladesh’s tea industry and contribute to the country’s economic development. By addressing the challenges it faces and capitalizing on new opportunities, Panchagarh can ensure that its tea sector remains vibrant and prosperous for years to come.