Tea embargo in Darjeeling may affect prices
The continuing export embargo in the Darjeeling region of India is expected to divert large customers to the neighboring Nepal and severely bring down prices. Exporters fear that buyers from Germany, Japan and UK will shift to Nepalese tea if the prohibition is not resolved. Around 0.5 million kilograms of first flush Darjeeling tea is produced in March, followed by another 1.50 million kg in April, and 90% of the crop is exported. According to insiders, prices may drop from approximately $130 to $20 per kilo. The embargo, in force since March 4, was imposed by a trade union seeking higher wages for garden workers.