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Hill tea in first flush slump

Darjeeling, April 24: The Darjeeling Tea Industry has been dealt a blow in the first flush with inclement weather reducing total yield of most gardens to half of what it was last year.

Tealeaves plucked in the first flush, which marks the start of a new season after winter, fetch the highest price in the market.

“The first flush was delayed by almost 15 days this year and about 80 per cent of the gardens have reported 50 per cent drop in production compared to 2007. This is largely because of a prolonged winter and heavy rainfall resulting in very few days of sunshine,” said Sandeep Mukherjee, secretary, Darjeeling Tea Association. Sunshine is needed for the tealeaves to grow.

This year’s first flush yield is the lowest in three years (see chart).

The bad news for planters is that according to tea brokers in Calcutta, the price of first flush tea is not expected to skyrocket despite the low production.

“It is too early to predict the price, but initial indications suggest that it will not be good despite low production,” said a broker.

On an average, the first flush comprises around 20 per cent of total annual production and commands an average price of Rs 600-700 a kilo at the auctions. The rest of the yield is sold at Rs 200-275 a kilo.

“Even if the first flush does fetch slightly higher prices in the next few days, it will not make a difference because production has been hit really hard this year,” the secretary of the tea association said.

Planters blamed the weather for poor production. A garden like Gayabaree in the Mirik valley, for example, received 10.31mm of rain in March 2008 compared to 3.32mm in the same month last year. The garden’s production has gone down from 21,737kg of made tea in March 2007 to 10,565kg this year.

The trend is the same across the hills.

Mukherjee also spoke of the possibility or workers’ bonus taking a hit. Last year, the Darjeeling tea gardens had paid a higher bonus (maximum 12 per cent) compared to 2006 (11.7 per cent).

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