Tea exports as well as domestic production of Darjeeling tea could be impacted as the ongoing political unrest in Darjeeling and Siliguri threatens to stall production in 87 tea estates.
Darjeeling tea is registered as geographical indication (GI). While India produced 945 million kg (mkg) of tea last year, 200 mkg was exported at an average price of $2 per kg. The orthodox or leaf tea export was more than 80 mkg.
Aditya Khaitan, chairman of the Indian Tea Association (ITA) said, ?This is the main season for quality tea. If the leaves grow beyond a certain number of days, the quality would fall. The value contracted for the tea would also go down eventually.?
According to him, if the unrest continues, exports are bound to fall. Moreover, if the transportation is affected, input for tea gardens would also be affected eventually.
?While the response for the first flush has been good, second flush could get affected due to the present situation,? he said.
Darjeeling, one of the largest suppliers of orthodox tea globally, is spread over more than 17,800 acre, has 87 tea estates and produces 9 mkg tea annually.
According to a senior Goodricke Group official, a clearer picture should emerge by Monday.