September 30, 2007

  • Trouble in Assam

    Those were the days..

    rodendron dell in snow

    A Storied Industry Falls on Hard Times
    Saturday, September 29, 2007 10:49 AM EDT
    The Associated Press
    By TIM SULLIVAN Associated Press Writer


    DIBRUGAR, India (AP) � He’s a genteel man, with a sprawling plantation house, courtly manners and an estate of carefully trimmed tea bushes that stretches across the gentle hills of Assam, blanketing the land as far as you can see. But the business of tea? It’s best not to ask.

    Manoj Jalan, a fifth-generation planter with a 5,000-acre estate, summed up his situation simply: “This is a rough business.”

    “I was born here, in this building,” Jalan said, standing in front of a colonial-era house. “Tea is a way of life for us.”
    India has long been famous for its tea, and the $1.5 billion industry launched by British colonials nearly two centuries ago is, after China’s, the world’s second largest. More than 1 million tons were grown in 2007, much of it here in the northeastern state of Assam.

    But production costs are mounting and a brutal insurgency has targeted the planters. Globalization, with the spread of cheaper tea from countries such as Vietnam and Kenya, has increased competition. While there have been glimmers of good news recently � a $320 million revitalization package announced by the government, and an uptick in prices from historic lows � the business is still at the bottom rungs of profitability.

    Things have changed since earlier generations of planters cleared the forests, planted the tea and built an enormously profitable industry.

    “I must confess,” Jalan said. “They did a better job in their time than we’ve been able to do in our time.”
    Planters like Jalan, whose families piloted the industry after independence from Britain 60 years ago, have been forced into a brutally competitive marketplace.

    On one side are corporations that maximize profits through enormous scale, with dozens of estates and tens of thousands of workers. On the other side are the growing number of micro-producers, many with just a couple acres of land, that are increasingly powerful in the market. All are competing in a market where prices have fallen 30 percent in just a decade.

    Then there’s the United Liberation Front of Asom, whose revolt has killed some 3,000 people over two decades, and helped turn the region into a backwater of unemployment. Planters have been prime targets � more than a dozen killed and at least 20 more kidnapped. Extortion payoffs, farmers say privately, are common.

    Today, many prominent planters don’t leave home without jeeploads of heavily armed bodyguards. Guardposts ring their clubs. Back in the good times, the wealthiest planters jetted to Europe to shop, and bought homes in Calcutta and New Delhi.

    Those days are over. Today, Jalan, like many old tea-making families, has turned part of his estate into a guesthouse, hoping wealthy Western tourists can bring more profits.

    Still, you can’t miss the imperial echoes on India’s tea estates, “gardens” as they’re called here. The “burra sahib” � the big boss � still lives in a cavernous house, overseeing nearly every aspect of life for thousands of employees, from housing to schools to medical care. Planters still gather from far-flung estates to drink at century-old clubs, and their wives still pass their days tending elaborate flower gardens.

    The laborers � tea plantations employ nearly 3 million, mostly women, in jobs often handed down through families for generations � are unionized these days, but most live just a few steps above the poverty line. In Assam, tea workers earn about $1.25 a day, plus free housing and subsidized food. According to union leaders, only about a third are literate.

    Ask pluckers how long they’ve been working, and many can’t do the math. Instead, like Lakhi Tauri, a tiny, elderly woman lugging a 20-pound bag through the fields on a humid morning, they gesture. “I’ve been doing this since I was this big,” she said, her hand about waist-high.

    These are the people who suffer most during downturns. When tea plantations close � and 33 are shut across India now, leaving thousands unemployed � the workers lose everything: homes, communities, schools. By some estimates, hundreds of tea workers have died from diseases linked to malnutrition over the past year after plantation closings.

    For laborers, the safety net can be as frayed as it was a century ago.

    “Yes, some change has come,” said Paban Singh of the Assam Tea Workers’ Organization, a union representing about 400,000 people. “But that change has not come at the speed or desired level.”

    Change doesn’t come easily to planters. Many still bemoan the end of the Soviet Union, which for years was their main buyer. Others talk about the bulk auction system, which has barely changed in a century. Also, some gentleman farmers are in trouble now because they didn’t properly tend their estates in the boom years, going for short-term profits instead of replanting some bushes and waiting seven years for the harvest.

    That’s one reason Basudeb Banerjee, the chairman of the Tea Board of India, the main industry group, has little sympathy for complaining planters. He thinks the industry’s worst years are finally ending, and that many planters invited trouble on themselves. “During the good years, huge money was made in tea,” he said.

    This is a business that seems to attract trouble. Yet here is the contradiction: It’s hard to find a planter who wants to give up. These are well-connected landlords who could sell out if they wanted, yet few do.

    “For me, looking after the garden is a great joy,” said D.N. Boruah, a planter whose family has been growing tea for nearly a century. “I may not be earning anything � I’ll tell you that � but the joy is to be involved.”

September 29, 2007

  • Snow Buds

    Comments from Another Tea Blog, which has made us feel proud..

    doke snow buds

    Lochan White Tea Samples

    After I wrote a review on Rishi’s Silver Needle, Ankit Lochan was kind enough to send me a package of white tea samples, which I received a few weeks ago. Unfortunately, with half of my department on vacation, and my grocery manager in Houston, I had to work through most of my regular days off and haven’t had a chance until now to sample them or write a review.

    To the Lochans, thank you for the tea, and I apologize for the delay.

     

    I’ve never been proficient at identifying and describing the characteristics of white tea, but I will do my best. I used the same parameters for each tea: 3 g/8 oz/5 min, brewed in a kyusu.

     

    Lochan Silver Silver Snow Buds

    2nd Flush 2007

    Darjeeling

    Doke is an interesting garden started in 1998 by Rajiv Lochan on a plot of land that others said was useless. Nonetheless, Doke started to prosper, and Rajiv shared the profits with the local community through the development of the Indus Foundation, a non-profit organisation promoted by Lochan Tea. Its main goal to promote education and primary schools in a way the will most benefit Indians. As a supporter of Transfair USA and Fair Trade Federation, I’m pleased to see a grass roots project such as this.

September 26, 2007

  • The power of Xanga

    DSC03553   DSC03557

    One of our friend tea blog co-writer and tea hobbist John Mcmumm was kind enough to send us two book on Tea in chinese. One of them is a catalogue printed by Chinese Forest Publication Department and is a very useful book.

    Most of the time one gets material on the main teas of China like Puerh, Longjing, Jasmine, Tie Guyan Yin etc, but the lesser known teas are generally not covered. This catalogue has about 200 such teas – beautifully illustrated with their production area, dry tea and brewed liquores.

    Since such books are normally not available in the western world, we are posting them here to benefit the readers

    .DSC03555DSC03558

    The other book is not clear to us, so we are posting these pictures here to understand from our dear readers as to what this book might be covering. What apparently we could understand are two pages from India and America, which makes us believe that in China tea is always associated with beautiful girls. Karina Kapoor, a very popular actress is depicted on the page.

    This makes us to go back to last year China Tea Expo where our partner Ms. Xiao put up an Ashwarya Rai poster to attract crowds, and it really did. On her webpage also Ms. Xiao associated another beautiful actress from India, Madhuri Dixit. I am lucky it seems – all the Indian actresses are getting associated with Indian black tea in China, though they may be heavy Cola drinkers in their own country.

    DSC01631

    To compare I have shown a Chinese young girl whom I lovingly called “Chini” or Suger, who manned our booth and was a super hit.

September 25, 2007

  • India@60 in New York & we are lucky to be here

    From 23-26th September 2007, New York will be celebrating India@60. Already the Nasdaq and Reuters have been taken over by the Incredible India campaign. Its great to see some terrific work by the Confederation of Indian Industry (CII) along with the Government of India to publicise India as the most favored investment destination in the world today.

    nasdaq

    All this started in Davos in 2006 during the World Economic Forum. The whole city of Davos was under siege by the CII run ‘India Everywhere‘ campaign. From the airport to the bus stops, the whole city was doused with the campaign. I have always believed that all that the international media shows about India is utter crap. And, we need a sustained and high decibel campaign to make sure that the world knows that India is more than elephants, Taj Mahal and snake charmers. India is the world’s fastest growing free market democracy. Not a country run by tinpot dictators who decide the course of its growth.

    india fastest

    Kudos to everyone involved in the media blitz. For the first time ever the Pravasi Bharatiya Divas is being celebrated in a foreign land (New York).

    For more information on the event, visit India@60.

September 24, 2007

  • INDIAN TEA INDUSTRY

     

    apeda logo

     

    The tea industry in India is about 170 years old. It occupies an important

    place and plays a very useful part in the national economy. Robert Bruce in 1823 discovered tea plants growing wild in upper Brahmaputra Valley. In 1838 the first Indian tea from Assam was sent to United Kingdom for public sale. Thereafter, it was extended to other parts of the country between 50′s and 60′s of the last century. However, owing to certain specific soil and climatic requirements its cultivation was confined to only certain parts of the country.

     

    2005-06 figures are:

     

    Parameters

    Tea

    Production (in thousand kilos)

    930,850

    Area ( in lakh ha)

    5.21

    Productivity (kg/ha)

    1785

    Exports : Quantity (MT)

    181,060

    Exports: Value (Rs in crore)

    1631.60

    Imports : Quantity (MT)

    16,400

    Imports : Rs. In crore

    99.26

    Prices Rs/ Kg.

     

    58.06

    (1.50 USD)

     

    There has been a dramatic tilt in tea disposal in favour of domestic market

    since fifties. While at the time of Independence only 79 M.Kgs or about 31% of

    total production of 255 M.Kgs of tea was retained for internal consumption, in

    2006 as much as 771 M.Kgs or about 81% of total production of 956 M.Kgs of tea went for domestic consumption. Such a massive increase in domestic consumption has been due to increase in population, greater urbanisation, increase in income and standard of living etc.

     

    Indian tea export has been an important foreign exchange earner for the

    country. There was an inherent growth in export earnings from tea over the years. Till 70s’, UK was the major buyer of Indian tea Since 80s’ USSR became the largest buyer of Indian tea due to existence of the trade agreement between India and erstwhile USSR. USSR happened to be the major buyer of Indian tea accounting for more than 50% of the total Indian export till 1991. However, with the disintegration of USSR and abolition of Central Buying Mechanism, Indian tea exports suffered a set back from 1992-93. However, Indian Tea exports to Russia/CIS countries recovered from the setback since 1993 under Rupee Debt Repayment Route facilities as also due to long term agreement on tea entered into between Russia and India. Depressed scenario again started since 2001 due to change in consumption pattern, i.e. switch over from CTC to Orthodox as per consumer preference and thus India has lost the Russian market. Another reason for decline in export of Indian tea to Russia is offering of teas at lower prices by China, South Asian countries like Indonesia and Vietnam.

     

    The major competitive countries in tea in the world are Sri Lanka, Kenya,

    China and Indonesia. China is the major producer of green tea while Sri Lanka and Indonesia are producing mainly orthodox varieties of tea. Kenya is basically a CTC tea producing country. While India is facing competition from Sri Lanka and Indonesia with regard to export of orthodox teas and from China with regard to green tea export, it is facing competition from Kenya and from other African countries in exporting CTC teas.

     

    Because of absence of large domestic base and due to comparatively small

    range of exportable items, Sri Lanka and Kenya have an edge over India to offload their teas in any international markets. This is one of the reasons of higher volume of export by Sri Lanka and Kenya compared to India. Another important point is that, U.K has substantial interest in tea cultivation in Kenya. Most of the sterling companies, after Indianisation due to implementation of FERA Act started tea cultivation in Kenya. So, it makes business sense for U.K. to buy tea from Kenya and Kenya became the largest supplier of tea to U.K.

     

    Tea is an essential item of domestic consumption and is the major beverage

    in India. Tea is also considered as the cheapest beverage amongst the beverages available in India. Tea Industry provides gainful direct employment to more than a million workers mainly drawn from the backward and socially weaker section of the society. It is also a substantial foreign exchange earner and provides sizeable amount of revenue to the State and Central Exchequer. The total turnover of the Indian tea industry is in the vicinity of Rs.8000 Crores. Presently, Indian tea industry is having (as on 31.12.2006):

     

    • 1655 registered Tea Manufacturers,

    • 2008 registered Tea Exporters,

    • 5148 number of registered teabuyers,

    . Nine tea Auction centres.

September 23, 2007

  • Confessions of a tea enthusiast..

    081818
    > The quality of Tieguanyin tends to increase with its durability. A top
    > Tieguanyin Wang can easily last 9 infusions, and still tastes honeyed,
    > not astringent and retaining a slight orchid fragrance. An experienced
    > taster (which I would say apply to many people participating in this
    > group) should have the confidence to tell the real from the fake.

    This is also marketing.  If a tea does or does not yield a huge amount
    of brewings, it can have a lot to do with weather conditions or how
    they cooked the tea.  Most of the TieGuanYin I have drank, and I’ve
    bought some top grade in the past, did hold up for many brewings,
    maybe upwards to 10 or 11, but I think it says little about the
    pollution levels or the quality of the tea.  The crappy red tea I am
    drinking from Yixing can brew 15 times without tasting like an old
    sock.  The general grade TGY has about 3 or 4 brewings in it before
    all of the spray-on flavor washes off.

    The main thing about this tea that bothers me is what was told to me
    by a local of GanDe county in AnXi.  He said something like, “Twenty
    years ago, the tea tasted nothing like it does today.  Most older
    locals here won’t even drink it.”

    Wonder why that is…

    > A famous Chinese tea is not just about a Longjing tea or a Taiping
    > Houkui tea etc. It has specific meaning referring to exactly where it
    > is produced, and its grade (usually determined by the timing of the
    > harvest and the quality of leaves)

    It’s grade depends more highly upon weather conditions and the growing
    process.  They do pick greens early in the spring, and the first pick,
    as with all teas, is always the best.  Geography is also important in
    a tea’s quality.

    > The 10 famous teas were coined in the 1950s. At that time, THE
    > Longjing tea refers to the Xihu Longjing tea, which then consisted of
    > only the Lion peak mountain (the original Xihu) and the surrounding
    > Mejiawu (later added).

    You mean Shi Feng.  There are slight differences between Xihu and
    ShiFeng.

    > Today, Longjing tea is produced all over China in 20 provinces.

    Yes, indeed.  Most people drink Longjing that comes from Sichuan and
    they don’t even realize it.  Vendors early as 10 years ago began to
    investigate other options in buying raw stock leaves for their
    factories because of the insane prices that the farmers in Hangzhou
    offer.  You ever seen a Chinese farmer with a car and a 3-storey
    house?  Go to XiHu village.

    > Similarly, the original TPHK tea were produced in the 3 villages
    > around Hou Gan.

    > Today it is produced in the entire Yellow mountain area, plus all the
    > fakes.

    I think I drank some of this tea that was produced in Hubei once.

    > As Mynight rightly pointed out, these truly authentic high grades are
    > seldom available. A top quality famous tea now sells at US$110 (per 50
    > grams) at Chinese street prices.

    Uh, either you were cheated or you are in a different China than I
    am.  I paid more than 100 bucks a few times for 500g of the tea that
    you mention from trusted, personal friends and sources.  Such a high
    price for 50g could only be found in TianFu (TenRen) or similar chains
    where everything is insanely overpriced anyway.

    > But internet retailing is changing this, making authentic high grades
    > available at better prices.

    To be honest, I have never been impressed by teas that I tried from
    the net.  I would usually go to hang out with a basic understanding of
    tea that paid top dollar for their stuff.  I’ve had teas in
    cornershops here that were better…

    > For example, Sevencup currently sells their Tribute Longjing tea at
    > $75. We do it for half the price. These teas go directly to the
    > Chinese White House and get tested for regularly. So there is no
    > question about their quality. Imagine, Westerners paying less than
    > Chinese people. Is there a catch? It is the nature of internet
    > retailing.

    Tribute Longjing means what exactly?  Westerners paying less than
    Chinese people…you must be joking.  This only happens here if you
    ask someone to go buy the tea for you or if your best friend is in
    tea.  I hope you can develop better marketing in the future.

    > I am sure as time goes by people would discover more high quality but
    > less famous tea to sell at more affordable price, delivering more
    > value to your money.

    In our dreams…

    > Organic farming is a long term strategy. Misuse of chemical and
    > pesticides kill the yield of the tea garden. It poisons the water
    > sources and harms the worker health. .There is no conflict here. The
    > best tea gardens have every incentive to keep their tea as clean as
    > possible. It is in their best interests.

    Misuse of chemical and pesticides increases yield, thus allowing more
    tea to be produced.  I think most tea gardens have figured out how to
    keep a balance by now, don’t you?

    > I understand all your concerns about pesticides in tea. I agree with
    > many of your suggestions, especially tea testing and Taiwanese tea.
    > But I think there are many GREAT teas around, from China/Taiwan/India
    > etc, tasting good and highly organic. Call me an optimist, I think
    > there will be even more of them available in the future.

    I repeat what I said before:  THERE IS NO ORGANIC TEA IN CHINA.

    That’s all.  I am not a pessimist, only a realist.

September 22, 2007

  • Pesticide regulations impair Chinese tea industry…
    By Jiang Yan (China Business Weekly)
    Updated: 2004-04-13 10:06

    tunxigardens

    As the Chinese Government sets more concrete goals to promote the welfare of the rural population, the country’s tea men are doing their bit to help domestic tea planters and improve the tea industry.

    China is the home of tea. Tea of almost 1,000 varieties is grown in more than 20 provinces.

    It was booming, but the industry now faces many challenges.

    In China, tea producers are burdened by a combined tax rate of 23 per cent on average. And tea processors and retailers have to pay a value-added tax of 13 per cent. These figures are much higher than in other major tea producing countries, such as India and Sri Lanka. India, China and Sri Lanka, respectively, rank as the first, second and third largest tea producers.

    Chinese tea producers are hit with agricultural taxes and various fees.

    Originally, they had to pay the agricultural speciality tax, which was levied at between 8 per cent and 31 per cent. But in the last two years, most provinces have lifted that tax.

    And China will gradually phase out the agricultural tax within five years, excluding tax on tobacco. That is expected to cut the financial burden on farmers, tea planters included, by 50 billion yuan (US$6 billion) per year.

    As the central government attaches increasing importance to farmers, agriculture and rural areas, tea producers are expecting to get a reprieve, said Shi Yunqing, vice-president of the Research Association of Wujiurou’s Theory On Tea.

    Gao Linyi, counsellor of the China International Tea Cultural Institute, who is a former senior official at the Ministry of Agriculture, said: “Tax respite means lower costs and higher profits for tea planters. They will be greatly encouraged by the new policy, which will help them expand production scales and improve labour efficiency.”

    However, tax reductions alone cannot relieve the tea industry. The biggest problem it faces lies in excessive pesticide residues, analysts say.

    Until now, 18 countries have issued 349 items of restrictions on tea imports.

    In July 2000, the European Union (EU) released new pesticide standards on tea imports, expanding the number from seven to 134.

    In 2001, China’s tea exports to the EU dropped 37 per cent. The United Kingdom alone imported 3,000 less tons of tea from China.

    Tea is the second largest exported agricultural specialty for China, only after silk products. Up to 40 per cent of China’s total output of tea is exported to more than 100 countries and regions in the world. Last year, itexported about 259,900 tons of tea, worth US$370 million, according to Shi. He is also the former general manager of the State-owned China Tea Co Ltd, which is the country’s largest tea exporter.

    Exports are declining as the EU, Japan and others put up the so-called “green barriers” — or higher import thresholds in terms of pesticide and fertilizer residues — against Chinese tea, insiders say.

    The EU standards are too rigid and involve trade protectionism, said Barbara Dufrene, secretary-general of the European Tea Committee, during the Second International Tea Co-operation Summit last year in China.

    Shi said: “Different pesticides are used in different countries. EU and Japanese standards have less restrictions on the pesticides used in their own countries.”

    He said India and Sri Lanka are also protesting that the EU’s standards are too high.

    “Many tea producing countries have realized it unfair if the standards are decided by importing countries,” Shi said.

    Last November in Sri Lanka, the Inter-government Tea Group under the United Nations Food and Agriculture Organization agreed to establish a special committee to frame out international standards on tea pesticides.

    “Even if the committee can produce a proposal, it has to get the nod from every member country. That will be hard and take a long time,” Shi said. “However, it is at least a step forward.”

    He suggested the Chinese Government should at the same time reconsider its standards on tea quality and stay in line with international practices.

    The Ministry of Agriculture in January released new and stricter tea standard, which took effect on March 1.

    The standard said moister and total ash in tea should be no more than 7 per cent, while water extract should be no less than 32 per cent. The ministry also asked tea planters to reduce the use of pesticides such as HCH, DDT, Dicofol, Fenvalerate, Methamidophos and Acephate.

    And the country’s tea men will also play their part to boost the industry.

September 21, 2007

  • India aims to regain top spot in Russia tea market in Moscow.. 

    Photo
    MOSCOW (Reuters) – India is seeking to restore its leading position in Russia’s tea market by increasing sales and setting up joint ventures, a senior industry official said on Thursday.

    “We are planning to become No. 1 again through supplying high-quality teas to Russia and creating joint ventures with Russian importers,” said Basudev Banerjee, chairman of the Tea Board of India.

    “We want the producers to be here in Russia,” he said during a visit to Russia with a delegation from the Tea Board.

    Russia is traditionally a tea-drinking country, consuming about 170,000 tonnes per year. It was India’s main tea export market before 2001, but Indian exports to Russia declined to about 30,000 tonnes in 2006 from 113,000 tonnes in 2000.

    Other countries, including Sri Lanka, China, Indonesia, Kenya and Vietnam, increased their market share in the meantime.

    R.K. Krishna Kumar, vice chairman of Tata Tea Ltd, told reporters in August that the Indian company planned to set up a joint venture company in Russia.

    Tata Tea, which owns the Tetley tea brand, has been expanding its overseas presence, buying herbal and fruit tea brands in the United States and eastern Europe, and recently taking 70 percent in a joint venture in China.

September 20, 2007

  • Worker’s participation

    Workers burn pocket for new bushes..

    Siliguri, Sept. 19: The garden is their only means of livelihood — open or closed.

    And workers of Raipur Tea Estate, who have realised it the hard way, are determined to preserve the source of sustenance, even it means shelling out Rs 50 to Rs 100 for replanting tea bushes.

    This, at a time when the 500 workers have been going without regular wages for more than two years. Under the joint action committee that runs the garden since its closure in July 2005, the workers get Rs 280 per month as against the Rs 1,296 and statutory benefits when the estate was open.

    “Considering the state of affairs, we unanimously resolved to save the estate,” said Ratan Majumdar, a staff member of the garden located on the outskirts of Jalpaiguri, 50km from here. “It was decided that everybody would contribute to the buying of tea and shade tree saplings.” The process was initiated early this year and deductions were made from the wages.

    The idea to replant saplings came from the urgency to get more tealeaves. Unlike the 12,000-13,000 kg of leaves that used to be plucked everyday when garden was open or just after it closed down, the daily collection came down to 2,300kg-2,400kg this year.

    “Since the owner never took any initiative to open the garden, or the government any steps to include pruning and plucking under the 100 days work scheme, we decided to do something on our own,” said Augustus Oraon, a sub-staff of the garden.

    The workers had bought the tea saplings from the nurseries and the shade trees were given for free from the block development office. “We are proud to say that 17,000 tea bushes have been planted on two plots of 10-acres each. We have also planted 8,000 shade trees. Each tea bush was purchased for Rs 2.25. For the shade trees, we had to bear only the transportation cost,” said Majumdar.

    The saplings will grow into full-fledged tea producing bushes only after three to four years.

    “This only indicates their sincerity and desperation to keep the garden alive,” said Aloke Chakravorty, the general secretary of the Intuc-affiliated National Union Plantation Workers in Darjeeling. “We want the government to make some minor changes in the aid schemes so that tasks like pruning and re-plantation are covered by it.”

    Today, around 60 workers of the garden met Md Nasim, the joint labour commissioner, seeking his intervention to include the names of 30 labourers who have been left out of the scheme for workers of locked-out industries. They also complained that the doctors of the Jalpaiguri district hospital have stopped visiting the garden regularly.

    Based on a Supreme Court order after a PIL was filed on closed gardens, the Bengal government had in 2004 directed that doctors from the nearest hospital would have to visit the estates on a regular basis.