Darjeeling, regarded as one of the finest & costliest tea producer estates in the world, is 150 years old and has had the honor of becoming the first Indian product to get a GI tag in 2004. It is in a grim situation, grappling with multiple economic crises like a liquidity crunch, increase in worker wages, and dipping in tea prices, etc. Thus, bringing economic woes to tea growers in Darjeeling. Things are worse off for small tea growers with fewer economies of scale financially bringing them to the brink of getting out of business.
Obstacles to Darjeeling Tea
The ongoing economic disruption has been building up for the last 5-6 years. Globally Europe and Japan are the major markets for Darjeeling Tea. Other players like Iran and Germany have been buyers of first flush tea from India, but nowadays are diversifying their tea imports, declining the consumption of Darjeeling annually. One major reason for European merchants to curb tea imports is linked to recessionary pressures, while Japan tilted its Tea imports to other nations like Nepal in 2017, one reason being the shutdown of Indian tea gardens due to the agitation & protest of the local Gorkha community worker for wage improvement and other being a competitive advantage i.e., cheaper rates of Nepalese Tea compared to Darjeeling one.
In Domestic markets, Substandard Nepalese Tea leaves with no import duty flood Indian markets under the free trade agreement. These are being misleadingly sold as Darjeeling tea therefore bringing down the prices and impacting the reputation & quality of Darjeeling tea.
Production woes
Under the tea tourism and allied business policy 2019, West Bengal Government announced the utilization of 15% of total tea estate land (to a maximum of 150 acres) for Tea tourism and allied business. In the current glim economic scenario 40-50% of tea growers are for selling their gardens
Nepalese and Sri Lankan tea growers enjoy a competitive advantage in selling tea leaves at much lower rates. Other important factors that are adding insult to injury are low rates of precipitation and dependence on old bushes for production. Darjeeling tea production is being eroded over time. It has dropped to 6.5 million kg in 2021, compared to 13 million kg two decades ago according to the report by Economic times.
Way Forward for the Darjeeling Tea
Most of the Tea bushes are aging so to increase production new bushes should be planted, it will be a long process but ultimately will be beneficial in the future. Government should intervene to mitigate the problem of the Liquidity crisis and provide these farmers with Adequate and timely direct benefit transfer support to ensure for timely availability of funds. Moreover, increase surveillance on Nepali tea so that it cannot be sold in the domestic market as Darjeeling tea.
