India Business Forum

Search Button

The Indian Express

The Financial Express

Latest News

EIW

Market Indicators

Screen

Boulevard India

Celebrity Chat

Express Computers

Express Power

Letters

Advertisers Forum


Headstart: Express Careers

Business Forum

Match Makers

Express Properties

Palki - Travel & Tours

Information Technology

Astrosurf

Eco-India

Dr Know

Morning Digest

Express Greeting

Graffiti

Drumbeat: Ad Buzzaar


FINANCIAL EXPRESS FRONT PAGE

Corporate

Economy

Expressions

Markets

Leisure

 

Monday, November 9, 1998

Industry to enhance Darjeeling tea output 

Nandini Goswami  
November 8: As part of its strategy towards enhanced promotion of Darjeeling teas, the industry has been trying to improve quality. The manufacture of an increasing amount of leaf grades is one of the propositions talked about.The uniformity in grade size will have long term benefits in the sale and marketing of Darjeeling teas, industry analysts say.

The idea of developing a system to produce 75 per cent of leaf grades in Darjeeling teas would be an ideal figure, and this could be done by making certain modifications in the process of manufacture and standardising the grade nomenclature.

In Darjeelings, the leaf grades constitute less than 50 per cent, whereas brokens and fannings comprise 25 per cent each. The dust variant is much less at about 2 per cent.

A general estimate of Darjeeling prices over the past few years show that more than 50 per cent of the Darjeeling teas, including brokens, fannings and dust sell less than the cost of production.

"There is a general perception that there is a bigdifference between broken and leaf grades. This trend prevailed earlier but now producers have tried to improve their quality by plucking finer leaves which has narrowed down the difference between the second flush and post second flush grades", says a Darjeeling planter.

Darjeeling teas face a major problem in selling the rains or the post- second flush Darjeeling crop -- plucked after June -- which does not have a foreign market. Producers have to sell this crop at prices lower than the cost price, the producer said.

Producers reap maximum margins on back-end winter and the second flush variety, which has a lucrative foreign market as well as a good domestic market, where blenders pay a high price.

A second problem may be attributed to a low demand and a restricted clientele. Moreover, the cost of uprooting to plant new bushes is nearly Rs 1.5 lakh per hectare. Also plaguing the industry is the lack of proper irrigation schemes during winter months, which retards the growth of the first and secondflush teas.

Another problem is related to the lack of domestic support. It is said that a country producing over 800 million kilograms of tea is unable to consume even 5 million kg of Darjeelings.

Industry sources said most of the Darjeeling teas sold in packets in India are cheaper varieties. An observer said Indian consumers are willing to pay a price for quality Darjeeling teas and hence its promotion in the Indian market is significant.

The industry has called for the protection of Darjeeling tea in the international market, for which a trademark patenting is being worked out. Patent attorney Kumaran & Sagar, a Delhi-based firm, has been entrusted to take necessary steps for the purpose.

The Darjeeling tea planters on a common forum of the Darjeeling Planter's Association is working out a strategy for promotion of these teas in customer-select markets.

Meanwhile, the Indian government is aiming at aggressive promotional campaigns including harping on the fact that 10 per cent of the teasproduced in Darjeeling are bio-organic teas.

Industry watchers said the marketing of Darjeeling teas in the domestic as well as the world market would prove beneficial as the industry is saddled with the problem of stagnant production hovering at 10 million kgs over the last 30 years.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


Top


The Ambassador Group of Hotels

Global Tenders invited by MSTC

The National Stock Exchange of India (NSE)

 

Click here for a printer-friendly page Printer-friendly page

One of India's Leading Banks


The Indian Express  |  The Financial Express  |  Latest News
Screen  |  Express Investment Week  |  Market Indicators  |  Express Computers
Astrosurf  |  Eco-India  |  Travel & Tourism  |  Information Technology  |  Drumbeat: Ad Buzzaar
Advertisers Forum  |  Career India  |  Business Forum  |  Match Maker  |  Express Properties