On Thursday, Anshuman Kanoria, the Chairman of the Indian Tea Exporters Association (ITEA), expressed that the Darjeeling tea industry is akin to a “patient in the ICU,” teetering on the brink of collapse. Kanoria emphasized the necessity of government assistance in the form of subsidies to ensure the survival of the Darjeeling tea industry. He underscored that such support is imperative to counter the looming challenge presented by Nepalese tea.
Speaking at a session organised by the Bengal Chamber of Commerce and Industry (BCCI) here, Kanoria said, “Darjeeling tea is an emotion for us. It flows in our blood. Today, the Darjeeling tea industry is a patient in ICU, virtually in its death bed”.
Kanoria pointed out that the industry suffered significant financial setbacks as a result of the 2017 political unrest and subsequent lockdowns, which led to the shutdown of tea gardens.
He said, “A lot of foreign buyers had been turned away and this gave an opportunity to our neighbour (Sri Lanka) to capture some of the some of the export market”.
Kanoria highlighted the growing seriousness of the Nepalese challenge, as it has begun to make inroads into the Indian market.
“With the Darjeeling crop down to 6.5 million kilograms per annum, the production in Nepal has gone up to six million kilograms. We have a serious competitor now,” he noted.
He mentioned that a decline in Darjeeling’s crop yield, attributed in part to climate change, has been observed. Additionally, he noted that the tea industry in Nepal, consisting predominantly of small-scale facilities, operates under a different model compared to India, where regulations are governed by the Plantations Labour Act.
“Darjeeling has become a high-cost operation with 60 per cent of the cost emanating from wages to labourers. Most of the Darjeeling gardens are losing to the tune of INR 200 per kilogram with each garden losing a few crores,” he said.
Kanoria said that some support from the government is needed for the Darjeeling tea industry to survive.
