Ankit LochanTea
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Friday, June 20, 2008

Darjeeling strike fills Assam teapot
- Demand for Northeast beverage rises as bandh stalls supply from hills

 Darjeeling’s loss is Assam’s gain — and Calcutta’s pride.

Calcutta airport clocked its largest single consignment of tea when 48 tonnes were loaded into a Singapore Airlines cargo carrier today.

But the tea was from Assam, not Darjeeling, because the indefinite bandh for Gorkhaland has choked supplies from the hills and stepped up demand for the beverage from the northeastern state. Chests carrying more than a million kg of tea are said to have piled up in the warehouses of Darjeeling gardens following the strike.

“Today’s consignment is going to London through Amsterdam. The export order was received by us at a short notice of five days,” said Amin Khan, manager, eastern India, Singapore Airlines cargo division.

Usually, orders are given a month in advance and big consignments weigh around four tonnes, Khan said. Yesterday, a 6-tonne consignment was sent to Melbourne by the airline.

Cargo officials at the airport, too, said more Assam tea had been passing through the airport in recent days. Excluding today’s consignment, around 30 tonnes of Assam tea have been carried by different airlines out of the city over the past 10 days, they said.

“Under normal circumstances, the amount would have been half,” an official said.

Since June 10, not a single tonne of Darjeeling tea has been exported through Calcutta airport or port because of the disruptions caused by the agitation of the Gorkha Janmukti Morcha.

“There has been a definite increase in the demand for Assam tea. However, we don’t want the tea export in Darjeeling to suffer,” said Pradyut Bordoloi, the industries and power minister of Assam.

Assam produces around 450 million kg of tea every year, out of which 20 per cent is exported, Bordoloi said. The state earns around Rs 1,000 crore from exporting tea.

In Darjeeling, the annual production is 10-11 million kg, of which 70 per cent is exported to meet the huge demand in the US, the UK, Germany, Japan and other developed countries.

Assam’s premium quality tea costs around Rs 200 a kg in the international markets, compared to Rs 800-1000 for the second flush Darjeeling Tea.

“The demand for Assam tea has increased over the last two weeks. We are getting SOS calls from exporters to urgently fly consignments to Europe,” said Abhijit Biswas, business unit head, eastern India, Panalpina World Transport, a multinational freight forwarding company which handled the 48-tonne consignment.

“The importers’ problems overseas have increased by the insignificant movement of Darjeeling Tea. Kenya, which has a substantial market in the UK, has lowered output. So blenders need a substitute,” said Sujit Patra, joint secretary, the Indian Tea Association (ITA).

Although the bandh enforcers had promised smooth operation for tea gardens, it has not been so. “Since all banks are closed, no wages can be paid to the workers and production is stalled,” said Basudeb Banerjee, chairman, Tea Board of India. “The supply of Darjeeling Tea has been severely affected and dispatch is entirely closed. The condition has become worse.”


Wednesday, June 18, 2008

 
Darjeeling unrest poops tea party

 

Calcutta’s port and airport have not exported tea for the past five days, the hills unrest preventing cons-ignments worth around Rs 7-10 crore from reaching the city.

“This is the second flush season, when we get the best-quality Darjeeling tea. If the situation doesn’t improve we may lose export markets,” said Aditya Khaitan, chairman of the Indian Tea Association, the apex body of tea companies.

 

TBI
Tea Board of India

 

A brief spell of showers in May kicks off the second flush season, after the first flush has ended in late April. As monsoon sets in well and proper, tea quality deteriorates and fetches lower prices.

Although the Gorkha Janmukti Morcha, which called an indefinite bandh last Monday, relaxed it from Thursday, the truckers who ferry tea from the gardens to Calcutta aren’t prepared to take chances, traders said.

Production too has been hampered with workers often unable to report for work although tea gardens are exempt from the bandh, which resumes from 6pm on June 16.

 

sanju
Bandh had hit tea planters, traders, exporters.......... 

 

“The bandh and unrest have affected both production and exports, because of low worker and staff attendance and transport problems,” Khaitan said.

Arvind Nevatia of Chamong Tea, which owns the highest number of tea gardens in the region, said the bandh had hit planters, traders, exporters and even the airlines and shipping companies that transport tea outside India.

“The losses can run into several hundred crores. This is because the tea companies have entered into forward contracts with other countries,” he said.

The smaller tea growers are suffering too, prevented by the unrest from sending their plucked leaves to bought-leaf factories or the bigger gardens that have their own factories. So they are forced to sell at reduced prices to factories outside the area earmarked as “Gorkhaland”, with whom they don’t have tie-ups.

Sources said these gardens were selling at Rs 8-8.50 a kg, down from the Rs 10-10.50 a kg at the beginning of the season.

Calcutta airport exported its last loads of tea on Tuesday. These had arrived before the bandh. “Since then, nothing. All bookings have been cancelled,” said Amin Khan, manager, east, Singapore Airlines cargo division.

Other carriers too have suffered huge losses, international cargo department officials at the airport said.

A 100-tonne consignment of Darjeeling tea, scheduled for London, has been deferred, an Emirates airline official said. Of this, 48kg was to arrive at the airport this week. “We are worried,” the official said.

Darjeeling produces about one million kilos of tea in June, the average price being Rs 800-1,000 a kg. Tea worth Rs 2 crore is exported every day and a day’s loss in production costs the planters Rs 3.33 crore.

The annual production is 10-11 million kg, of which 70 per cent is exported to meet the huge demand in the US, the UK, Germany, Japan and other developed countries.

Darjeeling accounts for 7-8 per cent of the Rs 1,800-2,000 crore India earns from tea export per year. One kilo of second-flush Darjeeling tea can fetch up to Rs 8,000 in the international market.

 

153405-Tea-Everywhere-0
Darjeeling tea second flush.

 

“Most of the superior-quality tea is exported. It is unfortunate that at a time we are trying to increase exports — Darjeeling being the flagship brand — such disruptions have taken place,” said Basudeb Banerjee, chairman, Tea Board of India.


Saturday, May 17, 2008

 Tea school for foreign students - Ready to learn
 
DSC07740
 
The Champagne of the East is giving a new high to the makers of the world’s best wines.

With tea steadily gaining popularity among the French, some professionals and university students from France have started doing their industrial training with Indian tea companies.

“There is a growing market for tea in France, as in the whole of Europe,” Galaud Marjorie, a student from Lycee Bremontier, Bordeaux, said. She and two other French girls, Legastelois Marine from the same university and Dreyer Audrey from Lycee Fresnel, Caen, are in Siliguri to learn about tea marketing with Lochan Tea Company, a blending, packaging and exporting company. All three of them are undergraduate students of international business.

“We had heard a lot about Darjeeling Tea, or the Champagne of the East, and wanted to explore the land that produced it and know the people behind it,” Marine said.

Audrey hopes her hands-on training in tea business will help her land a job. “I don’t want to limit myself to France and would like to try my hand in jobs outside the country as well,” she said.

Ankit Lochan, a director of the company, said it all started with queries from overseas clients.

“Our buyers worldwide complained about a dearth of professionals trained in the tea business,” he said. “Last year, we trained a French youth in all aspects of tea-handling — blending, packaging and marketing. He has now set up his own tea-import business in Paris.”

The word spread and Lochan Tea is set to receive more trainees this year. “We will have seven persons — one each from Australia and England and the rest from France,” Ankit Lochan said. “Next year, we hope to have more than 25 candidates.”

The company has devised a formal course in consultation with experts from North Bengal University’s Institute for Plantation Science and Management. Lochan Tea has also roped in industry veterans for special lectures. “We are dealing with topics like quality aspects of tea, handling and processing of raw-material and marketing of tea,” said I.D. Singh, the director of the institute and one of the resource persons.

While the present batch is here for a two-month “refresher course”, Lochan Tea is in the process of designing a more detailed six-month course. The fees — $ 150 a month for a short-term course and $ 1000 for the six-month course — are paid by the students or companies sponsoring them.

“We will set up a full-fledged school for tea management studies exclusively for foreign students,” Ankit Lochan said.

The director added: “The whole exercise will have a spiralling effect in promoting Indian tea globally. The ones we train will not only carry the word around, but also help set up marketing channels for exporting Indian tea worldwide.”


Wednesday, May 14, 2008

  Tea exports rebound on shortfall in Kenyan crop

table

Chennai, May 13 Tea exports rebounded in March by 20 per cent, on demand from Pakistan and Egypt, but production declined nearly 5 per cent, mainly on fall in harvest in North India.

According to Tea Board data, exports during March were 16.02 million kg (mkg) against 13.32 mkg during the same period a year ago.

kenya 2

“There has been quite a rebound in tea exports, especially from the South during March,” said plantation industry sources.

Exports from the South during March were up at 7.7 mkg, against 6.4 mkg the previous year.

For the first quarter of this year, exports are down marginally. During January-March tea shipments from the country were estimated at 43.25 mkg, against 44.37 mkg during the same period a year ago.

Of this, exports from the South were 19.23 mkg against 21.5 mkg.

Kenyan hit

kenya

“Exports picked up mainly on shortfall in the Kenyan crop. Estimates peg the global shortfall at 62 mkg and this is not a small quantity,” the sources said.

The Kenyan tea crop has been hit this year by adverse weather conditions and political unrest.

“The drop in Kenyan production has led to countries, such as Egypt and Pakistan, to turn towards India. South Indian tea, in particular, has gained from this,” the sources said.

kenya 3

Pakistan is the third largest market for tea consuming at nearly 140 mkg. Tea exports to the neighbouring country have been witnessing ups and downs during the last three years. While exports increased during 2006, again due to the Kenyan crop getting hit by drought, they declined last year as the crop in the African country bounced back.

Indian tea has been gaining some foothold in Egypt due to various promotional efforts undertaken by the Tea Board and the plantation industry. Similarly, Iran is also warming up to Indian tea.

Production

22tea-600a

Upto February, tea production in Kenya was down to 53.8 mkg against 76.4 mkg in the same period last year.

In view of the fall in supply, tea prices have witnessed a rise at various auctions across the globe.

In Indian auctions, tea prices on an average improved to Rs 66.24 a kg during January-February from Rs 60.96 during the year-ago period.

Production, on the other hand, declined to 50.5 mkg during March against 53 mkg during the same period a year ago. For the January-March period, production has been estimated at 89.9 mkg against 89.3 mkg last year.

3

Among the various tea-growing States, production in Tamil Nadu increased 2.6 mkg in March alone to 13.3 mkg, while in Kerala it was up 1.4 mkg to 5.8 mkg.

In fact, a 7.1 mkg rise in production in the South has made up for the 6.5 mkg fall in the North.

While Tamil Nadu’s production increased 4.6 mkg to 32.9 mkg during the first quarter, Kerala’s output was up 2.5 mkg to 15.4 mkg.

“The rains in February and March have helped improve production. A rise in production coupled with better prices is helping the tea sector,” the sources said.

Analysts are of the view that India would be able to reap the real benefit of the fall in the Kenyan crop during the second quarter of the year.

14tea600_1


Tuesday, May 06, 2008

Cry for tiger tea logo

Source - The Telegraph http://www.telegraphindia.com/1080506/jsp/siliguri/story_9231939.jsp

The Royal Bengal Tiger is more suitable than elephant, feel some of the stakeholders of the north Bengal tea industry, as far as the proposed logo for tea produced in the Terai and Dooars is concerned.

Following the Tea Board of India’s decision to feature the elephant in the logo for the brew produced in the region, a section of people associated with the sector believe that the predator is better suited than the pachyderm to indicate the area of the produce.

“The idea to feature elephant in the proposed logo that the tea board plans to bring out for branding the brew produced in the foothills of sub-Himalayan West Bengal deserves appreciation,” said Rajiv Lochan who is associated with the Siliguri Tea Traders’ Association.

“But we feel the elephant lacks uniqueness as it is found in other parts of the world like Africa. The Royal Bengal Tiger is a unique animal which truly represents our region and can be ideally featured in the logo,” said Lochan.

tig 
The Royal Bengal Tiger

Lochan expressed the apprehension that if the region, which produces CTC tea, is symbolised by the elephant, there are chances that the sale of Kenyan tea would increase. “As CTC tea is produced in the African country also, such a possibility cannot be ruled out. The basic objective of branding of Indian tea produced in different regions may also suffer a jolt.”

Representatives of Indian Tea Planters’ Association (ITPA) have also similar opinions. “We had earlier suggested to the tea board that the Royal Bengal tiger should be the animal to be featured in the logo designed for the Terai and Dooars tea,” said N.K. Basu, the principal advisor of the ITPA.

The board, which has assigned Lintas, an advertising firm, to create the logo, is planning to release the same by this year. This would be the fourth logo indicating the region of tea production after Darjeeling, Assam and Nilgiri.

A tea board official said the logo was yet to be finalised.



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