Darjeeling's allure can help tea estates tap tourism revenues and promote the origin.
Crisis confronts the local industry behind one of the world’s great tea origins. We humbly suggest solutions.
Darjeeling made the news in September, unfortunately, in reports that nearly 50% of the tea gardens here were up for sale. Many estates were said to be bankrupt.
This alarming development at one of the crown jewels of Indian tea origins capped a spate of problems. Among its many long-standing vulnerabilities, Darjeeling’s tea industry has for years been dogged by low yields, high cost of production, loss of markets, and encroaching climate change.
Covid posed a new threat. And the marketplace integrity and selling price of the origin itself came under pressure recently as unscrupulous merchants bought inexpensive Nepal tea, blended it with Darjeeling, and resold it in low-cost blends under the Darjeeling name. A ban on this practice backfired when big brands shunned Darjeeling altogether to avoid problems, leaving months of unsold lots.
Is all hope lost? Not just yet, perhaps. If Darjeeling’s tea industry can pull together as a group and work hard as individual stakeholders, there are at least 10 potential strategies and tactics for restoring the origin’s glory.
Highlight place of origin
In 2004, Darjeeling tea became the first Indian produce of any kind to win official Geographical Indication (GI) thanks to a decade of lobbying by producers, first in India itself, and in 2011 in the European Union. Today, 87 tea gardens have the right to use the Darjeeling tea GI logo.
GI is intended to protect the status of products that have esteemed characteristics, production methods, and quality found only in their specific place of origin, whether it’s a country, territory, or locality. Darjeeling tea joined other legendarily great goods like Colombian coffee, Bordeaux wine, Tequila, Swiss-made watches, and so on.
If you’ve got it, make the most of it. Darjeeling should heavily promote GI status to claim its place and set commensurate prices to sustain itself.
It’s important to protect the integrity of Darjeeling tea by enforcing GI. But sometimes rules backfire, as seen this year in October, when the Tea Board of India had to revise its 2021 notification that teas protected under GI (Darjeeling, Assam Orthodox, Nilgiri Orthodox, Kangra) cannot be blended with imported tea.
The rule had to be revised following weeks of poor sales. Tata Consumer Products Ltd., (TCPL) shunned the auctions following the notification. Tata previously bought an estimated 1 million kilograms of Darjeeling tea every year; their Tata Tea Gold is a Darjeeling blend. Following revision of the rule, blending will be allowed, but only pure Darjeeling product will be allowed to display the official GI logo.
The lesson may be that since rules and enforcement can be tricky, it’s possible that a bigger benefit may come from focusing on revival of the brand itself, promoting its reputation as an exceptional tea and proclaiming its rich heritage. Make consumers your ally in protecting the origin.
Revamp production
In 2014, Darjeeling’s production was 8.51 million kilograms, of which 3.98 million kilograms was exported. In 2020, it was 6.7 million kilograms, with 3.1 million kilograms exported. In 2021, production fell to a new low of 6.19 million kilograms.
The aging of tea bushes across Darjeeling is a major reason for the decline. Climate change is also a factor. Dry winters, unseasonable rain, and drought occur without warning, lowering yields.
Rishi Saria of Gopaldhara Tea Estate and Rohini Tea Estate says, “In 2004, Gopaldhara was producing 85,000 kilos on average. The average production of the last five years has been around 63,000 kilos.”
Replanting is the remedy for old, low-yield bushes. Replanting can also help cope with climate change by introducing drought-resistant clones and varietals. That’s not to say it’s easy, and it must be done in phases. Saria started replanting 10 years ago, but he says that is already 10 years too late. Late is better than never, however.
Leverage certifications
Many of Darjeeling’s tea gardens have been converting to organic farming methods and obtaining certification. This has a consumer appeal, particularly in the international market. So do other certifications, such as from the Rainforest Alliance. These validations should be leveraged as part of promotion and marketing campaigns, since they imply a high degree of compliance to global sustainability standards. Keep going.
Improve operational models
Wages remain a topic of contention in Darjeeling. Conversations about rescuing Darjeeling will be incomplete if the largest segment of its direct stakeholders — the workers — don’t have a say in the matter.
“I honestly feel the Darjeeling and India tea industry is working on an outdated British Raj model which has not changed for more than 100 years,” said Raju Lama, a Siliguri resident who runs Darjeeling Tea Leaves, an export and retail company. “Times have changed and we need to get over the colonial hangover.” He believes that the tea industry must become more inclusive. He points to the Tata model, where employees hold equity and gain representation on the board.
Another new model lets existing employees of estates become landowners. They supply harvested tea to the corporate body, which will then focus solely on their expertise in processing and marketing it. The company will no longer be distracted with having to provide and manage housing and amenities in compliance with the Plantation Labor Act. And when workers become farmer-owners, they become invested and accountable. A win-win. This model is advocated by Narendranath Dharmaraj, a 50-year veteran of the tea industry.
New approaches like these deserve to be tried, studied, improved, and promoted, since the status quo is faltering.
Develop alternate revenue sources
Tea tourism isn’t favored by all stakeholders, but if it’s handled right, it could provide a needed boost. The West Bengal government tried to make it easier starting in 2019, when it increased limits on the amount of land in tea estates permitted for tourism-related projects. The ceiling was lifted to 15%, with a maximum of 150 acres, up from 5%.
Gardens can offer hospitality at whatever level of comfort works best for them. At Makaibari Tea Estate, Rajah Banerjee introduced a simple homestay program that allows resident employees to construct rooms to let out to guests. Glenburn Tea Estate provides a premium guest experience. Then there are the über luxe Ama Stays and Trails at the Makaibari and Puttabong tea estates.
Some planters say tourism will not solve the inherent problems related to tea production and prices. They are concerned that tea gardens will become landbanks, and new owners will not be “invested” in tea.
But tourism revenues can help owners reinvest in production improvements like replanting. Darjeeling offers plenty to visitors, from fabulous landscapes and hiking trails to tea tasting and tea garden tours That will help make tourism a stepping stone toward stronger branding and marketing of the tea itself.
Engage Indian consumers
Darjeeling tea’s home state of West Bengal has long been, and remains, its primary market. The resident Bengali population, as well as the diaspora, are loyal to Darjeeling. Unpackaged tea is one challenge with this market, because it becomes easy to blend with cheap tea. So producers should nudge consumers toward packaged tea, where origin and source can be controlled. This will require effective communications to enlighten customers on what they are buying and why.
But beyond Kolkata, the larger Indian market offers untapped potential for Darjeeling, thanks to rising income levels and an aware and interested consumer base. It is in Darjeeling’s interest to focus on this market and not relegate it to a lower status while favoring exports.
Sell DTC
Darjeeling tea producers have for long focused on wholesale rather than retail. Admittedly, marketing and retail calls for more resources. And until recently, most of the direct retail offerings came from corporate-run Darjeeling gardens, not single holdings.
But clearly, it’s a worthwhile pursuit. Look how many of these companies have been expanding their retail offerings. The Amalgamated Plantations Private Ltd., recently launched their brand, Teas of India, for example. Jayshree Tea has opened a direct-to-consumer platform. The Goodricke Group which has been in retail for a long time, has expanded its product range, the latest being a range of bottled iced teas.
During the peak Covid years of 2020 and 2021, more producers ventured into online channels and going directly to the consumer. Gopaldhara Tea Estate went digital, targeting both a domestic and an international market. The garden has also found a niche in its autumnal varieties of tea, like red oolong.
At Selim Hill Tea Estate, Sparsh Agarwal and Ishaan Kanoria launched Dorje Teas as a subscription model. With Dorje, they are keen to make Darjeeling tea both accessible and affordable to the Indian market.
Agarwal is especially keen to improve the perception of the monsoon flush teas. These teas are not considered premium in the way spring and summer teas are. But they make up about 40% of Darjeeling’s annual production. They are mostly absorbed within the domestic market and sold as blended teas.
So Agarwal has been repositioning this tea by roasting it. The high firing gives it a unique smokey flavor, and it is sought after by the Kolkata market, although it’s not very well known elsewhere. Roasted tea is offered by Goodricke Tea, Lopchu Tea Estate, Makaibari, and Gopaldhara Tea Estates but Agarwal has chosen to celebrate the season’s harvest and this version of it, rather than downplay it.
Rally the troops
“We need to sell our teas better,” said Agarwal. “Brand Darjeeling has a victim story currently. What is needs is a glorious revival.”
“Why aren’t we trying to change the perception of Darjeeling teas?” implored Rishi Saria of Gopaldhara Tea Estate. “If Darjeeling needs to move to a demand-led selling, it needs to be promoted within India and outside, in existing and new markets.”
Darjeeling’s tea producers tend to view their teas more as a passion project than a business priority, expressing deep love for the place and the tea. They pine for government assistance to bail them out.
But producers neglect to speak with one voice. What Darjeeling needs is for its tea industry to come together. That way they can better lobby for subsidies and support from the government. They should collaborate to fund marketing, promotion, and production improvements. As Sri Lanka has successfully done, they could develop a roadmap for Darjeeling’s future. Working together, the industry needs to revive and rebuild Brand Darjeeling Tea.