China buys 20,000 kg of Darjeeling Tea

DARJEELING : China, usually a supplier of cheap goods, has given an unexpected shot in the arm to Darjeeling tea with large orders for the premium beverage that is a hit with the youth in cities like Beijing and Shanghai and is doing well as a corporate gift item. Chinese buyers have purchased 20,000 kg of Darjeeling tea, and there is a growing demand for it in the country, cheering planters in the Himalayan region as Europe, its traditional export market, is reluctant to pay high prices due to the financial crisis in the region. "China is offering $15-$40 per kg (Rs 810 to 2,160) depending on the quality. At times, they are offering better prices than the Europeans," SS Bagaria, chairman, Darjeeling Tea Association told ET. "The tea boutiques that have come up in Beijing and Shanghai are selling Darjeeling teas. Chinese importers may even buy more new season teas at a better price," he says. Bagaria owns three tea estates in Darjeeling - Phuguri, Millikthong and Orange Valley - that produce premium Darjeeling teas. The younger generation in China is leaning towards black tea in the ready-to-drink (RTD) format. "In the last two years, there has been an interest among the Chinese young crowd for black tea. 

Darjeeling tea is used for corporate gifting and on special occasions," said Sujoy Sengupta, tea taster and blender of Chamong Tee, the largest Darjeeling tea producer. Chamong Tee's chairman Ashok Lohia said: "We are in talks with some Chinese buyers for exporting our teas. Last year, we had sent 250 tonnes and the buyers gave us a reasonably good price." In China, tea is considered among the seven necessities, along with wood, rice, oil, salt, soy sauce and vinegar. The growing demand for Indian tea in China is heartening news also because exports to Britain, the biggest European market for the beverage, have dwindled from 22 million kg a year to 16 million kg over the past five years.

Kenyan tea is gaining at the expense of the "thick" India black tea in Britain, whose annual consumption of the beverage is about 100 million kg, of which nearly 60 million kg is imported from Africa. MGVK Bhanu, chairman, Tea Board said: "Black tea market in China is growing and there is demand for both Assam and Darjeeling teas. Darjeeling tea is being consumed by upper middle class people while CTC is consumed by the middle class people. China, which produces green tea, may turn out to be a major market for Indian black tea. From our side we are taking the initiative to ensure that Indian teas exported to China conform to the Chinese standard." China produces 1475 million kg of green tea annually. 

The growing acceptance of Indian tea in China appears to be part of a new global trend among younger consumers to try out different varieties of the beverage. Just as black tea is gaining ground in China, more Indians are also turning to green tea. The market share of green tea globally has risen to 31 per cent from 17 per cent over the past decade. Nonetheless, the departure from tradition is more significant in China than perhaps anywhere else, simply because tea is more deeply entrenched in the culture of the land where it originated.