Darjeeling tea companies likely to perform better this year

KOLKATA: Darjeeling tea companies , which had suffered a setback last year due to a drop in production, are likely to perform better this year as the crop situation has improved and enquiries from the overseas markets have picked up significantly. Even quake-hit Japan has sent feelers to the Darjeeling producers for picking up good volumes of tea to meet the country's demand. 

Britain's high street departmental store Harrods is also set to procure premium Darjeeling tea this year. "Harrods officials will come in June to place their requirements and tea companies hope to have a good deal with them," said Sanjay Bansal, chairman of Ambootia Group. The second flush teas will be available in the market from June onwards. 

Production of tea has increased by at least 25% compared to previous year. "Last year, production got affected due to a drought-like situation. We lost the premium first and second flush teas, which fetch maximum revenues for tea companies. But this year the weather has improved and this will have a good impact on the production ," said Ashok Lohia, chairman of Chamong Tee. 

Chamong Tee is the largest Darjeeling tea producer. Last year, Darjeeling had produced 8 million kg tea, which was lowest in last decade. There is an expectation that production this year will be around 10 million kg. The appreciation of Euro will also help Darjeeling tea exporters as most of Darjeeling teas are exported to European Union countries. "This will be definitely a good year for the Darjeeling tea companies," said Bansal. Incidentally, there was an embargo on exports in March due to the agitation launched by Gorkha Janmukti Morcha . "The exports got delayed due to the agitation. 

We are now busy in meeting the export enquiries. These export enquiries are for the first flush teas, which are entirely exported ," said an official of Darjeeling tea industry. In the domestic market, the demand for Darjeeling tea is increasing. "Though the first and second flush teas are high-priced and are largely exported, there has been an interest among the domestic consumers for these teas. We are seeing a shift among the consumers from average tea to quality tea," said a retailer. 

GTAC to start tea retailing 

Guwahati Tea Auction Centre (GTAC) has announced its foray into tea retailing, reports Bikash Singh from Guwahati. The auction centre plans to set up a chain of retail outlets across the state to sell quality tea and boost local tea consumption. Assam tea is facing stiff competition from Sri Lankan and Kenyan teas. GTAC has also roped in Indian Institute of Management-Shillong to study on the falling volume of tea routed from the auction centre. The Assam government has asked the tea companies to route the produce through GTAC. GTAC chairman and state principal secretary Ravi Capoor said first retail counter will be set up in the GTAC complex in Guwahati.  -(TET)