Gorkhaland Agitation : Darjeeling tea, which has enthralled Europeans with its exquisite aroma for centuries, may not be available in abundance in the western markets in September, the time when they eagerly wait for the brew. The shipments have been delayed by three weeks due to the agitation of Gorkha Janmukti Morcha (GJM) in the hills and second flush teas that have a unique 'muscatel' flavour can only reach foreign buyers in late November or early December. The Darjeeling tea industry fears that teas of Nepalese origin may grab these markets, thus affecting the original tea exports, going ahead.
Prices of Darjeeling tea have also fallen by 10% to 20% as lots of teas have arrived at the auction in bulk last week after GJM temporarily withdrew the indefinite strike for four days.
Sanjay Bansal, chairman of Ambootia Group, said: "Nearly 40% of Darjeeling tea production takes place during July-October. And the maximum shipments take place between July 15 and October 15. The continuous agitation in the hills has affected the movement of teas and, therefore, has delayed shipments." GJM has escalated agitation, demanding separate statehood, from July 29 after the UPA's decision to bifurcate Andhra Pradesh to create Telangana state.
Bansal said that this uncertainty is sending wrong signals to the overseas buyers. "A sudden disappearance of Darjeeling tea in the western markets for a brief period will create a lot of confusion. All the global buyers are aware of the present crisis and if this continues for long, they might lower their exposure to the Indian market next year. Generally, foreign buyers do not like supply constraints," he said.
The tea exporters are unable to take advantage of rupee devaluation. "It is unfortunate that we cannot take advantage of the appreciation of dollar and pound against rupee due to this agitation in the hills," said SS Bagaria, chairman, Darjeeling Tea Association (DTA).
Even in the domestic market, prices of Darjeeling tea have declined as the auction centres were flooded with teas when the GJM withdrew the strike. Prices of good quality Darjeeling tea have declined from Rs 700 per kg to Rs 600, while the prices of lesser qualities have come down to Rs 350 per kg from Rs 450.
Amidst this uncertainty, what is more alarming to Darjeeling tea industry is that Nepalese tea may grab its position in the overseas markets.
Source : economictimes
Sanjay Bansal, chairman of Ambootia Group, said: "Nearly 40% of Darjeeling tea production takes place during July-October. And the maximum shipments take place between July 15 and October 15. The continuous agitation in the hills has affected the movement of teas and, therefore, has delayed shipments." GJM has escalated agitation, demanding separate statehood, from July 29 after the UPA's decision to bifurcate Andhra Pradesh to create Telangana state.
Bansal said that this uncertainty is sending wrong signals to the overseas buyers. "A sudden disappearance of Darjeeling tea in the western markets for a brief period will create a lot of confusion. All the global buyers are aware of the present crisis and if this continues for long, they might lower their exposure to the Indian market next year. Generally, foreign buyers do not like supply constraints," he said.
The tea exporters are unable to take advantage of rupee devaluation. "It is unfortunate that we cannot take advantage of the appreciation of dollar and pound against rupee due to this agitation in the hills," said SS Bagaria, chairman, Darjeeling Tea Association (DTA).
Even in the domestic market, prices of Darjeeling tea have declined as the auction centres were flooded with teas when the GJM withdrew the strike. Prices of good quality Darjeeling tea have declined from Rs 700 per kg to Rs 600, while the prices of lesser qualities have come down to Rs 350 per kg from Rs 450.
Amidst this uncertainty, what is more alarming to Darjeeling tea industry is that Nepalese tea may grab its position in the overseas markets.
Source : economictimes
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