Assam’s Luxmi Tea to develop 4,500ha plantation in Rwanda
KOLKATA: In a first for an Indian company, Assam’s Luxmi Tea Co Pvt Ltd has concluded a deal with the government of Rwanda to develop around 4,500 hectares (ha) of tea plantation jointly with local growers.
Capping three years of negotiations, Luxmi Tea has secured 438ha under lease from the Rwandan government. The firm will support local growers with knowhow to cultivate 4,000ha more, and buy their crop paying a 44% share of revenue, director Rudra Chatterjee said in an interview.
Companies such as McLeod Russel India Ltd and Jay Shree Tea and Industries Ltd have invested in African countries such as Rwanda and Uganda, but they bought into existing plantations and expanded them.
This is the first time an India firm is developing a plantation from the ground up.
Luxmi didn’t put a number to the investment the Rwanda project would require.
“This is a project for the long haul,” said Chatterjee. Production from Rwanda will be scaled up from 1 million kg to 8 million kg over 10-12 years, he added.
Luxmi Tea will set up a factory immediately. Of the 4,500ha which is to be developed, 400ha is currently under cultivation.
The UK’s funding agency Department for International Development is also investing in the project. It is providing a grant of £6.8 million to help small growers develop their plantations.
Rwanda produces the CTC (crush, tear, curl) variant, which derives its name from the process of production.