Nepal tea spoils Darjeeling’s party
SILIGURI: The strike paralysed the gardens in Darjeeling. It gave Nepal an opportunity to spread its wings.
ANIL BANSAL, tea trader in Siliguri
Darjeeling tea is facing a stiff competition from a nimblefooted cost competitor located on the other face of the Himalayas — Nepal.
The produce from the neighbouring country has started coming to Bengal taking advantage of the record halt of 104 days during the indefinite bandh in the north Bengal hills, home to 87 gardens that produce the finest Indian tea.
“The strike that extended from mid-June to end September paralysed the gardens in Darjeeling. It gave Nepal tea the much-needed opportunity to spread its wings,” Anil Bansal, a tea trader in Siliguri, north Bengal’s largest city and trading hub, told HT.
Even after the shutdown was called off by the Gorkha Janmukti Morcha (GJM), the migration of garden labourers to look for greener pastures has severely affected operations in north Bengal. “If Nepal produces 4.5 million kg of tea, only 0.5 million is consumed in the country. Almost the rest of the produce enters India,” said Binod Mohan, chairman of Darjeeling Tea Association. The Nepal crop enters India as a part of a free trade agreement.
The total area under orthodox tea plantation is consistently increasing in Nepal. In Darjeeling, however, with no land available for new plantation, production is likely to remain stagnant.
Traders told HT that the Nepal variety is regularly blended with Darjeeling tea and sold loose that boosts their margin. The blend is sold as Darjeeling tea. Sometimes, un-blended Nepal tea is also passed off as Darjeeling variety, traders said. The Nepal product enjoys a cost advantage while offering similar quality.
According to Nepal Tea and Coffee Development Board, the country produced 5.5 million kg of orthodox tea in 2015-2016, which is about 65% of Darjeeling’s produce. That year Darjeeling’s orthodox tea production was about 8.5 million kg.
The chairman of the Darjeeling Tea Association said the matter has been raised with the Tea Board of India.
“Gone are the days when the Nepal variety is considered inferior to Darjeeling tea. It has made inroads in Indian as well as international markets,” said Rajiv Lochan, owner of Lochan Tea Ltd that exports Nepal produce worldwide.
“The product is lapped up as soon as it enters Siliguri. Moreover, Nepal tea costs two-third of the Darjeeling variety,” he said.