Domestic consumption, Chinese market can lift Darjeeling tea: ITEA chairman

Only two markets can rescue Darjeeling tea – India and China, according to Indian Tea Exporters Association chairman, Anshuman Kanoria, who spoke on Thursday at an event.

Kanoria noted that the highest price for tea in the world was paid by the Chinese consumer for Chinese tea, saying, "That is the consumer that understands quality."

He acknowledged that Darjeeling tea has acceptance but pointed out a lack of awareness and education about the product, calling for government intervention. "You need government intervention, cash injection, market access, and a regulation on Nepal tea," he stated, speaking at the Smart Tea Conclave organised by the Bengal Chamber of Commerce & Industry.

 

Darjeeling tea has encountered numerous challenges, including climate change, infiltration of cheap Nepal tea, and significant labour absenteeism. "It is a patient in an ICU," Kanoria remarked, painting a grim picture of the industry.

The industry suffered a considerable setback in 2017 due to the shutdown of gardens caused by the Gorkhaland agitation. "It was a huge financial loss for that year. More than that, it took a lot of foreign buyers and brands away from Darjeeling. There was a massive loss of market and a huge opportunity for our neighbour to capture the market," he said.

Teas from Nepal, sharing similar characteristics with Darjeeling tea, have made inroads. Kanoria warned that the threat from Nepal was serious, with infiltration into the Indian market surpassing even foreign markets. He revealed that the crop of Nepal-type Darjeeling had risen to almost 6 million kg (mkg), declaring, "We have a serious competitor."

Darjeeling tea production in FY23 amounted to 6.80 mkg. Climate change has emerged as a significant disruptor for both crop and quality, said Kanoria. He also highlighted that the average Darjeeling garden faces an absenteeism rate of 45-50 per cent.

Kanoria pointed out that most Darjeeling gardens were losing almost Rs 200 per kg, translating to a loss of a few crores of rupees for each garden.

Out of the 87 Geographical Indication (GI) registered gardens in Darjeeling, Kanoria said 70 were in proper functioning condition. He added, "About 18 to 20 have changed hands in the last two years. And it would not be out of place to say at least 40-50 gardens would be for sale today."

The remarks from the Indian Tea Exporters Association chairman reflect the urgency and critical situation of Darjeeling tea, calling attention to the need for targeted solutions to restore the famed industry.