Iran halts Indian tea imports, forcing growers and traders to find new markets.
Iran Halts Tea Imports From India
Iran, one of India’s big tea markets, has suddenly halted imports of tea and rice from India. No reason was given, although government officials have been quoted as saying this could be a retaliatory response as India stopped imports of kiwi and peaches from Iran. Another point raised was that Iran wanted India to restart buying oil. The Mint reported that Iran’s rice imports for April- September 2023 stood at $641.66 million, while tea imports for January- September 2023 stood at $66.39 million, valued second to the UAE. The tea bodies are waiting for Iran’s responses on the reasons for stopping imports.
NETA Asks For Ban On Six Pesticides
Representatives from the North Eastern Tea Association have submitted a memorandum to the state agriculture minister with an appeal to prohibit the stock, sale, and distribution of six pesticides – Cypermethrin, Acephate, Imidacloprid, Acetamiprid, Dinotefuran, and Fipronil. These pesticides are banned for tea, and the association said that testing of teas showed MRL ( maximum residue levels) residues indicating the use of these chemicals. The association said that these six pesticides contributed to much of the problems attached to the lack of food safety compliance.
Kangra Tea Seeks Government Intervention
The Kangra tea industry is awaiting some interventions from the state government to revive and promote their tea industry. The land under tea cultivation and crop have dropped significantly in recent years as it has been losing its viability. Three of the four government factories also remain closed. The tea association here has asked for greater support, especially in increasing the state’s tea tourism opportunities.
The Bombay Burmah Tea Corporation’s Singampatti Group ceased operations on June 15th. The Group included the estates of Manjolai, Manimuttar, and Oothu, located in the Tirunelveli district in south India, at the southern tip of the Western Ghats. The reason for ceasing operations is the end of the 99-year land lease. The Forest Department issued an eviction notice with a phased plan for withdrawal. The BBTC company has been around for 150 years, and the Singampatti estates are renowned for their natural beauty and progressive efforts to maintain the area’s biodiversity. The Oothu Tea Estate has been completely organic since 1988, producing about 1mn kilos annually. In a LinkedIn post, the GM of Tea Operations, Asgar Hussain, was quoted as saying the company’s primary concern was for the future and welfare of its employees. “For a company like BBTC, which has conducted the tea business for the past 150 years with honesty and dedication, the stab is far deeper than we can comprehend. Oothu produced one of the finest Orthodox Organic with a Global customer base.”
For more on the Singampatti group, read this blog by planter Manoj Archibald.
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Assam Gets Mobile Residue Testing Lab
Following the recent concerns about pesticide residue in tea and the need to address it, the Assam Bought Leaf Tea Manufacturer’s Association launched a state-of-the-art mobile residue testing laboratory earlier this week. This has been set up in collaboration with Eurofins Analytical Services India, which has the necessary instruments to test green tea leaves and made tea. The lab was inaugurated by Bimal Borah, Minister of State for Commerce and Public Enterprises.
New Tea Disease Detected In Assam
A team of scientists, led by Prof. Piyush Pandey from the Assam University in Silchar, has reported the discovery of a tea disease. The research was conducted over two years, and the Assam Tribune reported the story. The disease is a leaf necrosis caused by a fungus known as Lasiodiplodia theobromae, and it is reportedly similar to another fungal disease caused by Corticum. This new research is expected to help improve the treatment and control to save the leaves.
After repeated urging from Darjeeling’s tea planters, the Centre has issued a circular stating that every batch of tea entering India from Nepal must be tested for pesticide residues. Until now, Customs has tested a small percentage of the samples randomly. With the new amendment, every batch comes under scrutiny. The testing is done at the National Food Laboratory, Kolkata, and takes 15 days. This means the trucks carrying the tea will remain at the roadside awaiting results. Nepal depends on India as over 90% of its tea is exported here. However, Darjeeling’s tea planters have insisted that the Centre stop Nepal tea imports as it has affected both the quality of tea sold as Darjeeling tea (blended with Nepal tea) and prices. Further, India pays a 40% import duty on Nepal tea, while Nepal is not obliged to pay any for imports from India following a trade agreement. Non-compliance to food safety standards is a pressing concern in the Indian tea industry. – Kathmandu Post
Tata Reports Revenue from Premium and Sub-Premium Brands
Money Controlhas reported that premium and sub-premium brands brought over two-thirds of Tata Consumer Products’ revenue for the financial year that just ended. Tata Tea Gold, Tata Tea Premium, and Tetley Green Tea performed well, with e-commerce driving sales. It is a sign that consumers seek better quality tea via recognized brands. Informist Media has reported that in the financial year ending March 2023, TCPL bought 20.7 mn kilos of tea from North Indian auction centers, averaging Rs 170 per kilo. The market leader, Hindustan Unilever, bought 51.3 mn kilos at an average price of Rs 179.6 per kilo. Lower prices at auctions indicate that both companies stand to earn higher margins.
India Halts Tea Exports to West Asia
As tensions increase between Iran and Israel, Indian tea sellers have halted exports to Iran and the Middle East. Shipping companies are also expected to stay away from these ports. This will be a setback for Indian tea as Iran—once a major buyer—is also a gateway to West Asian countries.
Amalgamated Plantations operates gardens in Assam and Dooars
Amalgamated Plantations (APPL) Head Resigns
Vikram Singh Gulia, MD and CEO of the Amalgamated Plantations Pvt. Ltd. will leave on 30th June 2024. He is the second head of one of the top five tea corporations to resign this year after Atul Asthana’s exit from the Goodricke Group. The APPL Board has appointed Sukhjeet Singh Malhotra, Vice-President – PSO, Tata Consumer Products, as Wholetime Director and CEO Designate, effective April 9th, 2024. The Amalgamated Plantations include 25 estates in Assam and the Dooars, producing 40 million kilos of tea annually, making them India’s second largest tea producer.
Vikram Singh Gulia
High Grown First Flush Sees Lower Yield but Better Quality
The prolonged drought from October to March in north India has impacted tea crops in north India. The first flush picking began in late March; although rains have started, the crop is still in low quantity. This is seen in Darjeeling and Kangra. Vivek Lochan of Doke Tea says quality has been good and better than in recent years, thanks to the drought-induced slow growth. In Kangra, volume has also been impacted, although tea quality is up. The first flush verdict is low crop but good quality, sweet teas, better than in recent years. How the market responds is to be seen.
Assam BLF Association Factories Refuse to Process Non-Compliant Tea
The Assam Bought Leaf Tea Manufacturers Association (ABLTMA) asked its member factories not to accept non-certificated green leaf from smallholders. The association’s 110 bought-leaf manufacturers oppose mandatory auctions and emphasize compliance with the Food Safety and Standards Authority of India (FSSAI) norms but insist that sellers present a NABL-Lab MRL certificate attesting to the tea’s safe use. The association claims a higher price realization when selling directly to buyers and has questioned the tea board’s decision.
FSSAI discovered high non-compliance rates after its laboratories were ordered to test samples from a much larger pool of factories. The government mandate to sell 100% of dust-grade teas at auction followed.
In direct and auction sales, buyers assume responsibility for determining the tea’s safe consumption. Testing for compliance with FSSAI thresholds for 33 chemicals is more rigorous at auction than in direct transactions.
Assam’s BLFs are the state’s primary producer. A single BLF may source from upwards of 400 small tea growers via an agent. The problem lies in two parts: there is no single list of chemicals allowed and disallowed. The FSSAI and the Plant Protection Code each have a set of permissible chemicals. Second, small tea growers are not fully aware of the problem of chemical usage and the need for compliance with prescribed chemicals, which necessitates a lot of education at the grassroots.
One bought leaf owner called for a ban on the disallowed chemicals in the state, which would address the issue to some extent. However, what’s banned for tea may be allowed for other crops. This raises the question of why tea is under the spotlight now. They also say chemical testing is impossible at the factory. If tests were done and the chemicals exceeded FSSAI thresholds, it would be difficult or impossible to trace the contaminated tea to its source. No infrastructure is available for checks at this stage, which is first needed. Following the call to stop production, the Assam state government has intervened, and stakeholders expect a resolution. The factory managers say they are committed to processing compliant tea, but that needs to be enforced by the tea board at the grower level. Concerns with compliance are not limited to BLF, as many estates also procure green leaf from small tea growers.
UPASI and Tea Board announce the 19th edition of the Golden Leaf Competition
This year’s theme at The Golden Leaf Awards India is TGLIA Teas for Markets. 124 teas have been received from 38 factories across south India, covering the Nilgiris, Wayanad, Anamalais, High Ranges, and Travancore. The first tasting took place on March 30th at Coonoor. Details of the final round have not yet been announced. The competition’s teas will be auctioned on April 22nd.
Elections Present Darjeeling Planters an Opportunity to Seek Intervention
With 2024 being an election year, Darjeeling planters are asking the Centre to intervene and rescue the tea industry from its current crisis. The region has a significant bank of voters from the tea growers’ community, and they expect to be heard.
Weeks before the polls, Darjeeling’s north Bengal hill constituency is grappling with fast-changing political equations. According to reports in the Indian Express, leaders are switching their allegiances, and parties are receiving support from unexpected quarters.
The political landscape in the constituency has always been tumultuous, with regional forces playing a deciding role in sealing the fate of national party candidates amid the overriding sentiment of separate statehood demand (Gorkhaland).
The BJP has won the constituency since 2009. Unlike previous winners (Jaswant Singh and SS Ahluwalia), Raju Bista has been given a party ticket to retain the seat he won in 2019 by a landslide margin of over 4 lakh votes, writes Indian Express.
