KATHMANDU: Imports of ‘deceptively similar-looking’ teasfrom neighbouring Nepal are threatening Darjeeling’s tea industry and growers have urged the Centre to take steps to stop low-cost imports. The commodity imported under the Indo-Nepal Free Trade Agreement is sold in the domestic market affecting both demand and the price of Darjeeling tea, which is reeling under the impact of climate change and high labour costs.
“Teas, imported from our neighbouring country under the Agreement are sold to unsuspecting Indian customers in the retail markets,” chairman of the Darjeeling Tea Association Sheo Shankar Bagaria said. “These teas were low-priced as tea is cultivated mostly in the unorganised sector and wages are 50 per cent lower.”
Almost all the 87 tea estates in Darjeeling reported losses during the last fiscal year, Mr. Bagaria said. The industry wants the government to amend the Indo-Nepal Free Trade Agreement (due for renewal in 2017) to block the import of orthodox teas. Imports from Nepal stood at 10.5 million kgs in 2013-14, accounting for half of total imports as per latest official statistics. Tea Board officials said that several measures are being put in place to combat this.
Mr Bagaria made an appeal to the President Pranab Mukherjee at DTA’s annual general meeting in Darjeeling to curb imports. Tea and tourism act as the backbone of the economy in this region and the estates employ 60,000 workers on a permanent basis and 40,000 seasonally. The plantation area houses over four lakhs which is about half of the hill population, Mr. Bagaria said.
