Price of Darjeeling tea drops on quality and political concerns
The tea industry in Darjeeling witnessed prices in freefall, as concerns linger about crop quality and regional political situation. Prices dropped by more than 50% compared to last year in recent auctions, which is likely to have an impact on the bottom line of many growers. This reflects quality concerns stemming from excessive rainfall, with Tata Global Beverages, one of the largest buyers of Darjeeling tea, reducing purchases on quality issues. Furthermore, the region is in the middle of a political crisis, with local Gorkha population on strike, demanding a separate homeland in Darjeeling. With employees on strike and many roads blocked, tea stocks remain piled up in the estates. Finally, several cancelled export orders have created a surplus in the marketplace.