NEW DELHI

THE RS 200-crore Darjeeling Tea Estates have targeted Japan for exports of at least 2 million kg of tea and getting an auction price of around $100 per kg by excluding middlemen from marketing.

"With no dealings now with the London Tea Auction, we are putting in place the infrastructure for direct business with overseas customers and targeted an annual export of 2 million kg of tea to Japan alone, aiming at an auction price of $100 per kg as against the paltry $3.5-5.5 per kg at present," said Rajah Kumar Bannerjee of Makaibari Tea Estates.

Bannerjee said about 80 gardens in and around Darjeeling were focusing on organic tea, setting up a digital tea-commerce infrastructure, trying for registration under Geographical Indicators Act and reducing price differentials between retail and procurement prices for farmers.

He said the routing of Darjeeling tea through the LTA had caused a huge price differential. While the tea was being procured from planters in auctions for $3 per kg, the retail price ranged from $100 a kg (Harney & Sons, the US) to $350 (Wako Confectionery, Japan). - PTI

The Economic Times

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