Darjeeling tea prices shoot up 10-15% this season amid dry spell

The prices of top quality Darjeeling tea have shot up by 10-15% this season, reported The Economic Times. This comes as the hills which are usually covered with a mist, experience a six month long dry spell that almost halved the crop size from last year.

Darjeeling tea prices shoot up

The Economic Times quoted Tea planters and said that the unusually long period without rainfall has affected the production and the quality of the premium first flush teas that come to the market in April-May.

"Tea estates have reported 40-50% drop in first flush teas, which is the biggest revenue earner for the Darjeeling tea industry," Girish Sarda, co-owner of the 92-year-old Darjeeling's Nathmulls Tea told The Economic Times.

"The quantity of good first flush teas has been affected due to the prolonged dry spell that started in November," he added

The report further mentioned that the tea that were selling at Rs 1,700 per kg last year are now selling at Rs 1,900-2,000 per kg. The Economic Times further quoted Sarda and said that the high quality first flush teas that are priced between Rs 3,944 per kg and Rs 53,586 per kg are usually bought by high end customers. However, such sales are very small in quantity.

In 2022, Darjeeling tea production was at 6.93 million KG which dwindled to 6.18 million KG in 2023. The Economic Times quoted Industry insiders and said that the tea garden and their profitablility saw a big impact due to the violent agitations in the hills in 2017 and recent resurgence in the demand for Gorkhaland ahead of the ongoing elections.

The report further mentioned that foreign buyers are missing this year as they are preferring Nepal tea over Darjeeling as the former is much cheaper and has almost the same flavour as Darjeeling tea.

Meanwhile, chairman of Indian Tea Exporters' Association Anshuman Kanoria has said that the April crop production is likely to be behind by 25% to 35%

"As banjhi (bud dormancy in tea bushes) has started setting in, crop prospects do not look good, and the April crop is likely to be behind by 25% to 35%," said Anshuman Kanoria told The Economic Times.

"The crop shortage, coupled with increased costs and soft demand, has further increased the challenge of survival on already struggling Darjeeling tea estates," Kanoria added.

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