Darjeeling tea prices zoom on aggressive buying by exporters

KOLKATA: Aggressive buying by Tata Global Beverages, Hindustan Unilever, Global Exports & Marketing (Aditya Birla group company), Godfrey Phillips, Balaji Agro International, Raghunath Exports has pushed up Darjeeling tea prices by Rs 20 per kg at the auctions. The packeteers and exporters have become active at the auctions as the demand for Darjeeling tea has picked up in the international markets, particulary in the EU nations.

Darjeeling tea is exported to countries like the United States, UK, Germany, Japan, Netherlands and France. According to Tea Board statistics, the annual production of Darjeeling tea hovers around 9-9 .5 million kg. “Despite the Euro crisis, Darjeeling tea has fetched good prices (€50-100 per kg) in the European nations,” said Ashok Lohia, chairman, Chamong Tee Exports, the largest producer of Darjeeling tea. He added that prices of leaf-grade variety has shot up by 100 per kg.

“We had lost quite a significant volume of first- and secondflush of Darjeeling tea due to a drought-like situation in the beginning of the season. This had resulted in the revenue loss for the companies. We are trying to recover the lost during the March-June period. We are not sure whether we will be able to make up the loss,” Mr Lohia said.

J Kalyansundaram, secretary, Calcutta Tea Traders Association, said that 10 leading packeteers and exporters have become active at the Kolkata auctions. “The demand for Darjeeling tea is increasing in the domestic market as well. The purchasing power of the people has increased significantly. Therefore, they are looking at quality tea consumption,” he said.