India to pep up tea industry

Press, 10 January 1984, Page 8

India to pep up tea industry

NZPA-AP New Delhi The Indian Government, in a bid to revitalise the Darjeeling tea industry, has announced a reduction in excise duty and a plan to improve production of what many consider to be the world’s finest quality tea.

The Government said that the reduction in excise duty from 1.4 rupees (about 19c) to 20 paise (2.7 c a kg would help boost exports.

It also announced a 430 million rupee (about $59 million) plan involving 9500 ha in the foothills of the Himalayas. A statement expressed dissatisfaction over the slow growth of the Darjeeling tea industry, whose yield had improved only marginally in the last 10 years partly because of the failure of owners to follow regeneration rules. Tea-plants have to be cut to the roots every 10 to 12 years to allow for regeneration. “Darjeeling tea has a reputation of being the prime tea in the world and its first flush and second flush fetched premium prices because of its quality, but the industry has not developed satisfactorily (since then) due to various reasons,” the statement said.

About 80 per cent of Darjeeling tea is exported. The Soviet Union is the biggest buyer, importing 70,000 tonnes a year.

Profits in the Indian tea industry have fallen sharply in recent years because of increasing production costs.