ILAM, Nepal
Nepal is experiencing thebenefits of a renewed commitment by government and trade associations toupgrade and market high-grown tea in this former kingdom of 26 million people.
“Nepal’s tea community isin the budding stages of a loose-leaf revolution,” writes the NewYork Times. “Growersare planting tea bushes in the same kind of steep, high-elevation fields thatgranted Darjeeling its unmatched reputation. Entrepreneurial farmers andfactory owners, unburdened by Darjeeling’s colonial-era baggage, are developingremarkable styles of tea all their own at a fraction of the price, often withyounger, more vigorous bushes thriving in comparatively richer soil,” accordingto the newspaper.
The widely circulated articlequotes Maggie Le Beau at Nepali Tea Tradersin Massachusetts, Kevin Gascoyne at CamelliaSinensis in Montreal, Nischal Banskota, founder of Nepal Tea,brothers Bachan and Lochan Gyawali at Jun Chiyabari in Nepal and JeniDodd, a United States tea buyer who lives part of the year in Kathmandu.
At the World Tea Expo Suresh Vaidya, managing director at Guranse Tea Estate and Mai Tea Company in Nepal, and Chandra Angbo, director of Discover Nepal Tea, were upbeat. Angbo represents the Specialty Tea Association of Nepal (STAN-USA), located in Derby, Kansas. Guranse, located in the foothills of the Mahabarat Mountains, is one of the oldest organic tea gardens with elevations of up to 7,300 feet above sea level.
Darjeeling suffered asignificant setback in 2017 when striking workers abandoned gardens at theonset of the lucrative second flush. During the four-month walkout Nepaleseteas started entering India in good volumes (estimates are as high as 2.5million kilograms). Darjeeling’s 87 gardens normally produce about 8.5 millionkilograms annually but were down at least 25%, disrupting inventory and retailsales promotions. A shortage of quantity and higher prices due to scarcity ledbuyers to abandon Darjeeling.
The practice continueswith Nepalese tea sellers seeking agents with a local Indian GST number. Nepalgrowers reimburse the tax as they get much better prices for their tea inIndia. Indian retailers then sell the tea as Darjeeling.
A Distinct Terroir
The reason Vaidya andAngbo are optimistic is not that Darjeeling is experiencing difficulties, it isthe fact that Nepal growers have learned to express the distinct terroir of theregion and abandon a model based on mimicking the flavor of the Darjeelinghills.
Bachan Gyawali told the NewYork Times, “Nepal has always been classifiedas a poor cousin of Darjeeling and when we spoke with tea buyers, it becameclear there’d be no reason for them to buy a similar tea from Nepal whenDarjeeling will always be Darjeeling.”
Jun Chiyabari instead produces white tea, eastern-style oolongand first flush teas with floral notes unlike Darjeeling.
“This is my third year at WorldTea Expo, and I was happy to find so many aware of Nepal and buying andcarrying the tea,” Angbo told World Tea News.
The most popular teas onoffer are loose-leaf, he said. “People are seeking silver needle, goldenneedle, and white tea with some interest in oolong,” said Angbo.
Pricing is a factor. “Ourprices are little bit lower still,” explained Angbo, but specialty teas, unless they are from standoutgardens, are the hardest to get out of the country. “India has put another banagainst importing and air freight is very expensive, not many customers cantake that route,” he said.
DHL Express adds a NPR1200($10) remote area charge and NPR17500 ($160) charge for non stackable pallets,plus an elevated risk charge of NPR2300 ($20) and charges NPR499 ($4.55) pershipment for customs services. The base rate for flying 3 kilograms of tea tothe U.S. (Zone 6) is NPR11,300 ($102.97), shipping 30 kilograms would cost$625, adding more than $20 per kilogram to the retail cost of the tea.
The other major roadblockis certification. “Farmers that make the best teas sell it in small lots andcannot sell it over here,” he said. They are growing clean teas but have a hardtime getting certified because of the cost, he explained.
In Darjeeling’sShadow
Despite its elevation, Nepal has long been in the shadow of India. Nepal is landlocked with tea-drenched China to the north, India to the south and nearly impassable routes to Pakistan. Airfreight is very expensive, so tea is transported by truck and rail car to India. Nepali teas are banned from the Indian auction market where they would compete head-to-head on price and quality. Instead they are imported largely for blending where the emphasis was on their similarity to the famed Darjeeling teas from the adjacent state of West Bengal.
Fortunes have shifted forDarjeeling in recent years. A wet and foggy spring has depressed prices ofDarjeeling tea from $7.10 (INR487.3) per kilogram last year to $4.65 (INR319.3),a drop of 34%.
The June crop may be lower by 10-15% because of weather conditions, Darjeeling planter SS Bagaria told the Economic Times. Benod Mohan, chairman of the Darjeeling Tea Association, said he hopes for better weather in the second flush, but fears prices will not meet the ever-increasing cost of production.
Labor challenges
Illam, the primary regionfor specialty production consists of hundreds of small plots. Many residentsthere grow tea on two hectares or less.
See Purnima Rai’s Nepal Garden for an example of a day in the life of a typical small grower,
The commitment to improve tea quality has been bumpy. Workers were infuriated Sunday when the Illam Tea Producers of Panchakanya rejected more than 500 kilograms of green tea leaves, citing sub-standard quality. The stipulated minimum price of $0.36 (NPR40) per kilogram enforced by the local municipality was too high to make a profit according to growers.
Factories were idled June 28 in protest of the fixed price. Workers supplying 52 tea factories affiliated with the Suryodaya Tea Association threw tons of green leaves on the Mechi Highway near Pashupatinagar in eastern Nepal in protest.
The government convened acommittee of stakeholders to discuss a long-term solution.
The Nepalese are a persistent people who possess uncanny stamina. Their tea can be exceptional and unique processors must now achieve consistency at volume. They are more likely to prevail by forging ahead on a trail of their own.
Sources: NewYork Times, EconomicTimes, Tea Journey