The growing momentum against unchecked import of Nepal tea into India, and concerns about its quality has reached the Parliament. This is of concern to the Nepal tea industry as India remains their biggest market for both orthodox and CTC tea. At the centre of these developments is the need to ensure that teas coming into India from Nepal and teas from India reaching the export markets meet required MRL standards. While associations such as the Darjeeling Tea Association are pushing for more regulations in the import of Nepal tea, on the other side of the border, tea producers are hoping the matter will resolve with bilateral talks.

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Tea Prices 

*New audio uploaded 7-21-2022

PHOTO CAPTION | CREDIT: Photo by Aravinda Anantharaman

A Parliamentary Standing Committee on Commerce has presented a report on the issues affecting the Indian tea industry, in particular the Darjeeling region, at the Parliament in June 2022. This was the outcome of the meetings held with various tea bodies and the tea board of India. Among the issues presented are the dumping of cheap and substandard teas from Nepal, pending subsidies, land rights to workers in Darjeeling, Terai and the Dooars, living wages for tea workers especially in West Bengal calling for the implementation of the 2019 Code on Wages which stipulates that 85% of the wages be provided in cash and the remaining 15% in kind.

The Committee has also noted the emergence of the small tea growers and sought policies to mobilise this segment, along with including those in the Darjeeling district within the Geographical Indication status.

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*New audio uploaded 7-21-2022

PHOTO CAPTION | CREDIT: Photo by Aravinda Anantharaman

This week’s report comes from Munnar, where the monsoon is in full swing but the rain has paused for a couple of days. The Met department continues to report heavy rains in Assam, Meghalaya and also the Nilgiris. In markets, Russian imports of both CTC and Orthodox has reportedly increased over the last fortnight. 

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*New audio uploaded 7-21-2022

PHOTO CAPTION | CREDIT: Photo by Aravinda Anantharaman

Even as rains continue unabated in the Nilgiris, it has reportedly increased production by 7% compared to the same period last year. Meanwhile, the Met department has issued an orange alert for the northeastern states, including Assam, Meghalaya, and Arunachal Pradesh.

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In Sale 28, Guwahati saw a similar trend to the previous week in prices and volume of sales. Domestic buyers were active. In Kolkata, exporters were active for orthodox and Darjeeling tea. Hindustan Unilever has been busy in the auctions for CTC Leaf and Dust in Kolkata. Prices dropped slightly from the previous week.

In the south, some Dust grades were sold in Cochin, but CTC Leaf and Orthodox Leaf saw more takers. Orthodox Leaf had buyers for the CIS countries, the Middle East, and Hindustan Unilever.  Coonoor saw good uptake of all tea types. Prices were similar to the previous week with fewer out lots. 

Tea Price charts, courtesy TSigma Consultancy

*New audio uploaded 7-21-2022

PHOTO CAPTION | CREDIT: Photo by Abhinash Dash, Wikimedia Commons

The weather continues to cause concern in the northeast. Incessant rains have led to a drop in tea production. Indian media reports a drop in production of 11% in Assam, 16% in Cachar, 21% in the Dooars and 19% in the Terai for June 2022, as compared with June 2021. This has been further aggravated by the drop in prices at the auctions along with an increase in wages in North Bengal. 

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Sale 27 saw a good week at the Kolkata auctions. Hindustan Unilever was active for CTC and Dust while Orthodox Tea saw good response from the Middle East. Exporters were also keen on Darjeeling second flush teas. Overall average prices were lower than the previous week. In Guwahati too, Hindustan Unilever was active. Average prices were marginally lower than the previous week but there were also a decrease in the percentage of out lots. 

In the south, CTC Dust sold well in Cochin with exporters picking up some Orthodox Dust. Leaf teas sold reasonably well with exporters to CIS and the Middle East active for Orthodox Leaf. Hindustan Unilever was also active for Orthodox Leaf. About 25% of the total quantity remained unsold. Coonoor saw good response from major blenders for CTC Leaf and CTC Dust while exporters continued to be active for Orthodox Leaf and select CTC Dust. 

Tea Price charts, courtesy TSigma Consultancy

*New audio uploaded 5-25-2022

PHOTO CAPTION | CREDIT: Photo by Abhinash Dash, Wikimedia Commons