Tea leaves spell clouds over Kangra

This is do-or-die year for the tea variety from Himachal

After Assam and Darjeeling, crisis is brewing in yet another unique Indian tea variety, with production in Kangra down by almost 40 per cent. Renowned for the flavour and aroma of its produce, the 154-year-old tea industry in Himachal Pradesh has been badly hit by adverse weather, ageing plants and stiff competition from Sri Lanka and China.

Within a space of five years8212;the Kangra gardens last produced a bumper crop in 20018212;yield mostly Chinese hybrid varieties has come down to 700,000 kg from 17,00,000 kg, a 40 per cent drop and almost 35 per cent lower than comparative figures in the Nilgiris, Assam and Darjeeling.

According to the state department of agriculture, more than 50 per cent of the 24,000 hectares under tea now have been abandoned in Palampur andBaijnath.

To top it all, all the four cooperative tea factories located at Palampur, Baijnath, Sidhwari and Bir are facing huge losses; the planters themselves are not getting their regular payments. The reason is not difficult to pinpoint: Last year, the stock remained unsold for months and was finally hawked for between Rs 35-40/kg against the average market price of Rs 70-120.

Government efforts to resuscitate the units have paid off only with Palampur; but here, too, production is down from 500,000 kg to 329,000 kg. The Bir factory has shut down, while two8212;the ones at Sidhwari and Baijnath8212;have been privatised. To clear arrears, the government recently converted its entire loan of Rs 6 crore as equity share.

8216;8216;Because of the lack of professionalism and technology, production costs at these units is very high,8217;8217; says R D Dhiman, registrar of cooperatives, who supervises these factories. 8216;8216;Moreover, the quality of tea is not high-grade. So it can8217;t compete in the international market. To think that till some time ago, Kangra tea was in great demand in Europe, Central Asia and Australia.8217;8217;

Privatisation, Dhiman believes, is the only way to ensure technology upgrades and a subsequent share in the international market pie. The private sector experience corroborates him: A private factory near Dharamsala is known to supply tea to Japan and Germany for Rs 700-900/kg.

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But this could well be the last chance to revive the Kangra tea industry, says Brij Bihari Lal Butail, leading tea planter and local Congress MLA. 8216;8216;This year, the conditions have been slightly better than the last few years8217;. Late rains in February and March have helped. The first flush, due April-end, may get a good market. But if all the market possibilities are not exploited, this could be the end of Kangra tea.8217;8217;