The Darjeeling tea industry is grappling with an intensified crisis as the import of low-cost Nepal teas, totalling 10.4 million kg from January to October this year, exacerbates the financial challenges already plaguing the sector. Sandeep Mukherjee, principal adviser of the Darjeeling Tea Association, expressed concern, stating that out of the 87 tea estates in Darjeeling, seven are permanently closed, and many others struggle to meet statutory dues for workers. The fate of the Darjeeling industry remains uncertain, with questions arising about the continued operations of the gardens.
The financial distress in Darjeeling is attributed to various factors, including reduced production, diminished demand in export markets, and low-price realization. The import of Nepal teas, which are more cost-effective, has further contributed to the crisis. Sources indicate that Nepal has successfully penetrated export markets for Darjeeling tea, directly supplying countries such as Germany and Japan.
Worryingly, Darjeeling planters fear that domestic consumers are substituting Nepal teas for Darjeeling teas, leading to a decline in the industry’s market share at home. Despite official figures from the Directorate General of Commercial Intelligence and Statistics (DGCIS) indicating 10.4 million kg of Nepal tea imports until October, industry insiders suggest the actual figure could be closer to 17 million kg.
Madhav Sarda, managing director of Golden Tips Company, highlighted the climatic similarities between Nepal’s Ilam district and Darjeeling in West Bengal. He expressed concern that teas from Ilam are entering India, masquerading as Darjeeling tea, and flooding the domestic market. Sarda emphasized that Nepalese teas are significantly cheaper than Darjeeling teas, sometimes by 35% to 50%, making them an attractive option for blending and mislabelling.
The Darjeeling tea industry’s production has steadily declined from 11 million kg to 6.6 million kg in 2022, with the current year expected to see further reductions due to adverse weather conditions. Seven of the 87 tea estates in Darjeeling have permanently closed, adding to the industry’s uncertainties.
Calling for immediate intervention, Anshuman Kanoria, chairman of the Indian Tea Exporters Association (ITEA), urged both the central and state governments to take swift action to revive the struggling Darjeeling tea industry. The industry, he warned, is in critical condition, with exports anticipated to decrease this year.