The Darjeeling tea industry, already grappling with financial crises due to factors like low production, reduced demand in export markets, and diminished price realization, faces an additional challenge. The import of affordable teas from Nepal reached 10.4 million kg between January and October this year, deepening the industry’s crisis. Compounding the issue, Nepal has successfully penetrated traditional export markets for Darjeeling tea, engaging in direct exports to countries like Germany and Japan, further impacting the industry’s economic stability.
Concerns among Darjeeling planters are mounting as they fear that domestic consumers are increasingly opting for Nepal teas, mistakenly identifying them as Darjeeling teas. This trend is causing significant harm to the Darjeeling tea market within the country. Industry insiders argue that despite DGCIS figures indicating the entry of 10.4 million kg of Nepal tea until October, the actual figure could be as high as 17 million kg.
Madhav Sarda, managing director of Golden Tips Company said “The Ilam district in Nepal and Darjeeling in West Bengal have the same climate. It is just an imaginary line that divides the two. The tea produced in Ilam is almost similar to that of Darjeeling. So a lot of teas are entering from Ilam to India and are being sold in the domestic market as Darjeeling tea. And the volume is gradually increasing every year.”
Trade sources report that approximately 17 million kg of Nepal teas have made their way into India this year, encompassing a variety that includes both orthodox or premium teas and CTC teas.
Sarda mentioned that Nepalese teas are priced significantly lower than Darjeeling teas, with a difference ranging from approximately 35% to 50%.
“They are blended with Darjeeling teas and are sold as Darjeeling teas. The consumers can’t differentiate between Darjeeling teas and Nepalese teas. Even the tea experts sometimes fail to differentiate between the two,” he said.
Over the years, the production of Darjeeling tea has declined, dropping from 11 million kg to 6.6 million kg in 2022.
“The production will be less this year because of bad weather during the initial phase of the new season of the tea crop cycle,” said a Darjeeling planter.
Sandeep Mukherjee, principal adviser of Darjeeling Tea Association said “Of the 87 tea estates in Darjeeling, 7 are permanently closed. Many of them are somehow surviving and are not able to clear the statutory dues of the workers. The fate of the Darjeeling industry is uncertain and we do not know how long the gardens will continue their operations.”
In 2022, the Darjeeling tea industry recorded an export of 3.02 million kg of tea.
“Darjeeling tea industry is in ICU and this year the exports will be less. Both the central government and state government should take immediate steps to revive Darjeeling tea,” said Anshuman Kanoria, chairman of the Indian Tea Exporters Association (ITEA).
