In India’s West Bengal state, the iconic Darjeeling tea gardens are facing a significant challenge. The once thriving industry, known for producing “the champagne of teas,” is experiencing a decline in both production and demand. The primary reason is the increasing preference of buyers for cheaper tea options from neighboring Nepal. This shift is putting the future of Darjeeling tea and the livelihoods of thousands of workers in jeopardy.
The Darjeeling tea industry, which began in the mid-19th century under British rule, now covers 17,800 hectares with 87 tea gardens. The Tea Board of India reports a decrease in production, with only about 6,640 tonnes produced in 2022, compared to 7.69 million kilograms in 2019. Factors contributing to this decline include a shift to organic farming, labor shortages, and climate change impacts.
Exports of Darjeeling tea have also fallen in recent years. In 2022, only 3.02 million kilograms were exported, a decrease from 3.71 million kilograms in 2018. Darjeeling tea primarily caters to international markets like Russia, Japan, Iran, the US, and Europe.
One of the critical factors affecting the Darjeeling tea industry is the competition from Nepal. In 2022, Nepal exported approximately 15 million kilograms of orthodox tea to India, a significant increase from the previous year. The free trade agreement between India and Nepal allows Nepalese tea to enjoy favorable market conditions in India. Additionally, the cost of production in Nepal is lower due to the absence of processing factories and less stringent labor benefits requirements compared to Indian tea estates.
The situation has worsened due to the high wages in Darjeeling and the relatively low export prices. The rising import of cheaper Nepalese tea has negatively impacted the livelihoods of Darjeeling tea pluckers and industry stakeholders. The import of Nepal tea is not only affecting the Darjeeling tea market but also raising health concerns due to the use of certain banned insecticides in Nepal.
To address these challenges, industry stakeholders are calling for a revision of India’s Free Trade Agreement with Nepal and strict enforcement of the Geographical Indication (GI) tag, which prohibits blending Darjeeling tea with other varieties. The Tea Board of India has acknowledged the situation and is considering proposals to support the industry. However, the current scenario remains critical for Darjeeling tea, with industry experts expressing concerns about its survival if the current trends continue.
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