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Known as the "champagne of tea", Darjeeling tea is famous for its aroma and taste of muscadine grapes and ripe fruits, but it is currently in a state of existence to the point of "breathing
difficulty".
It is also true to say that Darjeeling Tea is already in the ICU (intensive care unit), because it has been bleeding for too long without receiving any treatment
.
difficulty".
It is also true to say that Darjeeling Tea is already in the ICU (intensive care unit), because it has been bleeding for too long without receiving any treatment
.
The situation in Darjeeling in the Indian state of West Bengal is extremely critical, with almost all Darjeeling tea plantations in dire condition and the government not helping
.
.
Desperation is leading to sell-off
.
Wages and prices for vital products such as coal, fuel and fertilizers continue to rise sharply, leading to higher
production costs.
In addition, multiple challenges posed by the pandemic, worker shortages, absenteeism, climate change, and improved food safety norms in the European Union directly affect tea quality, profitability and yield
.
To make matters worse, Nepalese tea with free access to India is cannibalizing the market
for Darjeeling tea.
.
Wages and prices for vital products such as coal, fuel and fertilizers continue to rise sharply, leading to higher
production costs.
In addition, multiple challenges posed by the pandemic, worker shortages, absenteeism, climate change, and improved food safety norms in the European Union directly affect tea quality, profitability and yield
.
To make matters worse, Nepalese tea with free access to India is cannibalizing the market
for Darjeeling tea.
Reports by the Parliamentary Standing Committee on Commerce (PSCC) of the Government of India, as well as the tea industry, have also acknowledged that the Darjeeling tea industry is under financial pressure
.
.
At the recent 139th Annual General Meeting of the Indian Tea Association in Kolkata, Nayantara Palchoudhuri, president of the association (below), said: "The Darjeeling tea industry has yet to recover from the financial difficulties of the long shutdown (strike) in 2017
.
Production continued to decline
due to reduced tea production.
Over the past 6 years, Darjeeling tea prices have grown at a CAGR of just 1.
7%, while input costs have grown at a CAGR of between
10% and 12%.
These problems are exacerbated by rising transportation costs due to the lack of geographical advantage
.
”
.
Production continued to decline
due to reduced tea production.
Over the past 6 years, Darjeeling tea prices have grown at a CAGR of just 1.
7%, while input costs have grown at a CAGR of between
10% and 12%.
These problems are exacerbated by rising transportation costs due to the lack of geographical advantage
.
”
Palchoudhuri said that for the revival of the industry, it is necessary to immediately consider the intervention of a special fiscal plan for the tea industry to ensure the sustainable development of the industry and the livelihood
of more than 55,000 workers and their families.
of more than 55,000 workers and their families.
Anshuman Kanoria, President of the Indian Tea Exporters Association, said: "Although Darjeeling is only a small part of the Indian tea industry, it is still the 'flag bearer' of the Indian tea industry, affecting the livelihoods
of hundreds of thousands of people.
As India's first Geographical Indication (GI) product, Darjeeling tea is India's pride and heritage, and its revival is crucial
.
”
of hundreds of thousands of people.
As India's first Geographical Indication (GI) product, Darjeeling tea is India's pride and heritage, and its revival is crucial
.
”
Overall, production from Darjeeling's 87 tea plantations has fallen from 10 million kilograms about a decade ago to 6.
5 million kilograms
in 2022.
"Darjeeling tea is on the verge of
collapse in the face of low labor productivity, absenteeism, declining production, rising costs, additional food safety requirements," Canoria said.
”
5 million kilograms
in 2022.
"Darjeeling tea is on the verge of
collapse in the face of low labor productivity, absenteeism, declining production, rising costs, additional food safety requirements," Canoria said.
”
Nepalese tea enters India
Nepal is a direct competitor to Darjeeling, and the increase in Nepalese tea production and allowing it free access to India has eroded
the market for Darjeeling tea.
the market for Darjeeling tea.
Under the India-Nepal Treaty of Peace and Friendship, Nepalese tea is free to enter India
.
Kanoria explains: "Nepal uses tea cultivation models in the Himalayan region within its borders with little or no compliance with traceability or labor laws
.
Unlike Indian tea plantations, which comply with the strict requirements of the Plantation Labour Act, Nepal's Alpine Tea Factory sources tea from smallholder farmers at low prices, has uncertainty about pesticide compliance, and dumps most of the tea into India in different ways, often posing as Darjeeling tea
.
”
.
Kanoria explains: "Nepal uses tea cultivation models in the Himalayan region within its borders with little or no compliance with traceability or labor laws
.
Unlike Indian tea plantations, which comply with the strict requirements of the Plantation Labour Act, Nepal's Alpine Tea Factory sources tea from smallholder farmers at low prices, has uncertainty about pesticide compliance, and dumps most of the tea into India in different ways, often posing as Darjeeling tea
.
”
Ashwini Kumar Choubey, Minister of Consumer Affairs of India, told parliament that the Tea Council of India has issued directives to all tea importers and buyers to ensure that the source of imported tea is indicated in all their sales invoices and that imported tea is not passed off as Indian origin tea
.
In addition, all tea distributors and blenders are required to clearly indicate in the label on the packaging that the raw materials of blended tea are imported, regardless of whether the imported tea is brought directly or indirectly, and the source
must be indicated.
.
In addition, all tea distributors and blenders are required to clearly indicate in the label on the packaging that the raw materials of blended tea are imported, regardless of whether the imported tea is brought directly or indirectly, and the source
must be indicated.
India's best exports
Sparsh Agarwal of Dorje Teas, below, said the 2017 shutdown allowed Nepal's tea industry to sell its inferior tea as a "Darjeeling" and unfortunately as of today, the government has not taken the necessary response
.
.
Although Darjeeling produces only 7 million kilograms per year, the "Darjeeling tea" sold on the global market is close to 20 million kilograms
.
Tea auction systems account for only a small fraction
of total tea sales.
"The problem is that there is a secret connection between overseas buyers and local traders, tea traders and unscrupulous plantation owners to sell
Nepalese tea as Darjeeling tea," Agarwal said.
”
.
Tea auction systems account for only a small fraction
of total tea sales.
"The problem is that there is a secret connection between overseas buyers and local traders, tea traders and unscrupulous plantation owners to sell
Nepalese tea as Darjeeling tea," Agarwal said.
”
On the issue of geographical indications, the Indian official noted: "The regulator issued a directive in November 2021 prohibiting the mixing of any imported tea into any GI tea, whether or not it claims to contain any GI products
.
This further hindered India's multi-producing tea bag producers from sourcing Darjeeling tea, and also caused Darjeeling to lose nearly 10% of its overall market share
.
On October 18 this year, the Indian Tea Board amended its 2021 circular (which completely prohibits the blending of Indian tea with geographical indication labels with imported tea).
.
This further hindered India's multi-producing tea bag producers from sourcing Darjeeling tea, and also caused Darjeeling to lose nearly 10% of its overall market share
.
On October 18 this year, the Indian Tea Board amended its 2021 circular (which completely prohibits the blending of Indian tea with geographical indication labels with imported tea).
Complex issues that make things worse
Tea plantation owners claim that mass absenteeism by workers without any deterrent laws affects the quality and yield
of Darjeeling tea.
of Darjeeling tea.
They demanded that the estate must provide housing for all employees, even after retirement, ignoring requests
to provide replacements or allow other members of the family to work on the tea plantation.
to provide replacements or allow other members of the family to work on the tea plantation.
Workers also receive rations from the government, and some have illegally obtained MGNREGA cards and do not feel the need to go to work
.
The absenteeism rate of 40% to 60% has led to a huge loss
in the yield and quality of Darjeeling tea.
.
The absenteeism rate of 40% to 60% has led to a huge loss
in the yield and quality of Darjeeling tea.
Climate change is also affecting the yield and quality
of Darjeeling tea.
The dry winter affected the high yield of spring tea picking (March), while the unseasonal rains from April to May also caused the equally important summer tea harvest (May-June) to suffer
.
This year, due to the constant rain and fog weather, there were few sunny days and rain flooded
.
of Darjeeling tea.
The dry winter affected the high yield of spring tea picking (March), while the unseasonal rains from April to May also caused the equally important summer tea harvest (May-June) to suffer
.
This year, due to the constant rain and fog weather, there were few sunny days and rain flooded
.
The Indian Tea Council has set up a six-member Darjeeling Committee to study these issues and make recommendations
for their resolution.
This initiative has been appreciated
by the industry.
The Darjeeling region has developed an export plan
for Darjeeling tea.
for their resolution.
This initiative has been appreciated
by the industry.
The Darjeeling region has developed an export plan
for Darjeeling tea.
What is the way out of Darjeeling tea's revival of its strength?
Dorje Teas' Sparsh said: "First of all, tea estates need to be direct-to-consumer
.
Second, the government needs to ban the illegal smuggling of Nepalese tea and demand that the Nepalese government also take appropriate action
.
Third, Darjeeling tea plantation owners should band together to protect the industry
.
”
.
Second, the government needs to ban the illegal smuggling of Nepalese tea and demand that the Nepalese government also take appropriate action
.
Third, Darjeeling tea plantation owners should band together to protect the industry
.
”
Kanoria of the Indian Tea Exporters Association said: "Darjeeling has been bleeding for too long without treatment
.
Government assistance is urgently needed to enable Darjeeling tea plantations to withstand the negative impact of the strike in 2017 and disasters
such as drought and lockdowns in the years that followed.
This is the only way
to provide breathing space for tea plantations and stop panic selling to non-tea industry players.
The next step is to protect Darjeeling tea from imported tea from Nepal
.
After this, there is a need for continued promotion in important potential overseas markets such as India as well as China to create market demand and ensure that India's pride and heritage – Darjeeling tea can survive
on its own again.
”
.
Government assistance is urgently needed to enable Darjeeling tea plantations to withstand the negative impact of the strike in 2017 and disasters
such as drought and lockdowns in the years that followed.
This is the only way
to provide breathing space for tea plantations and stop panic selling to non-tea industry players.
The next step is to protect Darjeeling tea from imported tea from Nepal
.
After this, there is a need for continued promotion in important potential overseas markets such as India as well as China to create market demand and ensure that India's pride and heritage – Darjeeling tea can survive
on its own again.
”
In addition, the same import duties were imposed on Nepalese tea, agreements were reached with the EU and other major trading partners to prepare for certification, and laboratories in India were notified so that independent sampling and laboratory testing in India prior to shipment could serve as the basic basis
for export approval.
for export approval.
A Darjeeling plantation owner said: "In the face of many difficulties and repeated economic losses, Darjeeling tea still forges ahead
.
The only way to stop this is to create more demand and competition, which is also the only way
to get higher unit prices while maximizing the potential of production.
Tea producers need to make real efforts and plans to improve the quality of Darjeeling tea and maintain its uniqueness
.
”
.
The only way to stop this is to create more demand and competition, which is also the only way
to get higher unit prices while maximizing the potential of production.
Tea producers need to make real efforts and plans to improve the quality of Darjeeling tea and maintain its uniqueness
.
”
