Economics of value-added tea products: A case study on tea processing unit of Assam Agricultural University, Jorhat, Assam

Abstract

The study on the "Economics of Value-Added Tea Products" with a case study on the Tea Processing Unit(TPU) of Assam Agricultural University (AAU) in Jorhat focuses on analysing the economic impact of producing value-added tea products.By exploring the processing methods, costs, and returns associated with the production of specialty tea, the research highlights how adding value through innovative products like flavoured teas, tea bags, and gift packs can increase profitability (Talukdar & Hazarika, 2020).It provides valuable insights into how value addition in tea processing can lead to economic growth, improved quality, and market expansion for small and large-scale producers.Ultimately, the research emphasizes the importance of diversifying tea products to meet evolving consumer preferences while contributing to the economic development of tea-growing regions.The Tea Processing Unit of AAU, Jorhat, is profitable with a benefit-cost ratio of 1.60.Moreover, the benefit cost ratio of different product of tea processing unit are calculated which are found to be positive.To sustain growth, it is essential to enhance raw material supply, expand production capacity, improve the online platform, and establish a dedicated sales system to meet rising demand.