2011 :Smiles for the Darjeeling Tea Companies

KOLKATA: Darjeeling tea producers are all set to cheer. The year 2011 has brought smiles to them as the average price of Darjeeling tea in the domestic market has shot up by Rs 35 per kg. Even the end-season Darjeeling teas, being offered at auctions now, are fetching Rs 267 per kg as against Rs 204 per kg in 2010 end -- a rise of 31%. This augurs well for the Darjeeling tea industry which generally depends on exports for revenues. CTC and dust tea prices have risen by Rs 8 a kg compared to the previous year. Western India companies , Tata Global Beverages and HUL are active in the market which has pushed up the prices of end-season teas.

J Kalyansundaram, secretary of Calcutta Tea Traders Association (CTTA), said: "Darjeeling teas have fetched good prices this year. Even the end-season teas are fetching good prices. There is a demand for Darjeeling teas in the domestic as well as the export markets. Companies and exporters are buying Darjeeling teas." Darjeeling tea production has increased by at least 25% compared to the previous year. "Last year, production was affected by a drought-like situation . We lost the premium firstand 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 produced 8 million kg tea, the lowest in the last decade. There is an expectation that production this year will be around 10 million kg though the final figure is yet to be published by Tea Board. The appreciation of Euro has helped 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 . We are happy that the domestic consumption of Darjeeling tea has increased," said Sanjay Bansal, chairman of Ambootia Group.

Generally, 40% of Darjeeling teas, which have the unique muscatel flavour, are exported. The rest 60% are considered as rains teas and do not make much headway to export markets. But this year, there has been no lull in Darjeeling tea offtake. The CTTA secretary said CTC and dust teas have fetched better prices even at the year-end sale. "Companies are buying tea for the present season and for the Februray-March period. They have been strong this year and bought good quantities of teas," he said.

( Source -The Economic Times)

Posted by Unknown on 20:37. Filed under darjeeling, news, दार्जिलिंग . You can follow any responses to this entry through the RSS 2.0. Feel free to leave a response