Tea industry divided over EU tea blending ban

TNN | Oct 30, 2016, DARJEELING/KOLKATA: The Darjeeling tea industry has welcomed the ban on blending of Darjeeling tea that is sold in the European Union (EU) countries saying it will herald a new chapter for the world famous "cuppa" post November, 2016. However, Indian Tea Association (ITA), the largest tea producers' body in the country, feels this new law can badly hit exports of Darjeeling to EU countries, especially Germany.

At present in the world market, especially in the EU countries, teas under brand Darjeeling are being sold much more than it is produced in the 87 tea gardens of the Hills.

A lot is to do with at times "illegal blending" of tea leaves from Darjeeling with that of other states like Assam and even Nepal. However, after November 10, this practice will become illegal and only pure tea leafs from the region (Darjeeling) will be allowed to flood the EU markets.

"The name of Darjeeling tea which is a brand was being misused so far. This has mostly to do with blending of Darjeeling tea leaf with the produce of other region. If consumers do not get to drink original Darjeeling tea then how will they be able to differentiate its taste with other varieties," said Ashok Lohia, chairman of the Chamong tea group that owns 13 gardens.

The Chamong group chairman though said that the ban on blending was only for tea leaves from regions other than Darjeeling. "Under the geographical indication (GI) protection the EU protects the Darjeeling tea for its uniqueness. This implies that the product has to be pure though blending can be done with others tea leafs produced from the region of Darjeeling but not from others," explained Lohia.

But Azam Monem, chairman, ITA, said, "Only first flush and second flush tea from Darjeeling can sustain on the export market on their own without blending. But that is only 3-4 million kg of Darjeeling tea, which is just one-third of the total Darjeeling produce."

According to the ITA chairman, the rest of the seasonal tea from Darjeeling have to be blended for the exports market. "Now, if the EU countries ban blending, most of the tea from Darjeeling will have to be blended with Assam Orthodox to be sold in the EU market."

Darjeeling tea became the first product in the country in 2003 to be granted GI status. The EU had given Darjeeling Tea the GI shield five years ago in November, 2011. The GI or PGI (protected geographical indication) tag indicates that a product has a unique association with a particular region.

However, traders dealing in Darjeeling tea found ways to exploit the GI protection as blenders were given a five year breather to convert to pure product. "We has started an investigation some years back and to our surprise found that teas under brand Darjeeling in quantity were being sold much more than it was actually produced. And the maximum mischief we found was being done in Germany which is one of the largest buyers of Darjeeling tea," said an industry source.

The Darjeeling Tea Association (DTA) an umbrella organization of tea gardens in the Hills welcoming the ban on the blending said it would negate the impact of spurious tea being sold as Darjeeling tea. "The DT along with the EU is trying its best to ensure that consumers of Darjeeling tea receive actual tea for its value. This ban has come as a boon now for the Darjeeling tea industry. We have already started the process seeking protection Darjeeling tea and other important international markets like the USA and Japan," said Sandeep Mukherjee, principal advisor of the DTA.

Even though the ban blending will come into effect from November, Lohia suggested that creating awareness and publicity about Darjeeling tea should be pro-activated to increase its demand. "Just the ban will not help if we do not publicize the product, create awareness and find ways to boost the demand," the Chamong group chairman said.

The Darjeeling tea industry produces over eight million kg tea leaf annually over the 87 tea gardens in the Hills employing over fifty thousand workers.

Anshuman Kanoria, vice chairman of Indian Tea Exporters' Association, said, "Darjeeling GI is a matter of national prestige and could have been used for brand enhancement and value of Darjeeling tea. Instead, the larger producers have used GI to threaten the very importers who were responsible for creating the market for Darjeeling and alienating them. Average quality of Darjeeling tea has declined in the face of steeply rising costs and ever increasing food safety challenges. Darjeeling viability depends on improving quality, image, demand and competition. Through its actions, the trade has let itself down on all fronts."

Like Kanoria, many tea experts feel that GI cannot be a magic wand and has been mis-presented to importers. The larger systemic issues ailing Darjeeling need to be urgently addressed. "Moreover, we continue to turn a blind eye to GI violations within the country and our trade fraternity and undermine the Government's effort in having obtained Darjeeling GI," said a renowned tea trader, who doesn't want to be named.

The trader added that the premise for GI was based on wrong premise and a false notion that Darjeeling produces 10 million kilo tea and people fabricate and sell 40 million kgs as Darjeeling tea. "It is ironical that the very Darjeeling producers who clamoured for GI protection are big buyers for Nepal teas and exporting the same in their trade interest. The association and Tea Board continues to turn a blind eye to reports of large scale Nepal green leaf being bought by some Darjeeling gardens in violation of GI. Darjeeling tea over the years has lost its unique quality and less than 20% teas produced are true quality while the rest is showing Darjeeling in poor light," said another trader.

Today hardly 8.5 million kgs is produced and without Tata absorbing about 1 million kgs in its CTC packet it is difficult enough to sell 8.5 million kgs