Darjeeling tea trade turns cold on strong rupee

As prices of the first flush Darjeeling tea have surged by 15-25% in the international market

Even as prices of the first flush Darjeeling tea have surged by 15-25 per cent in the international market, primarily on account of less availability of this variety, tea producers might fail to convert the price increase into higher margins owing to currency volatility.

Tea producers from Darjeeling say the price increase has happened majorly in the mid-range bracket, where the tea is sold between Rs 1,300 and Rs 1,500 a kilogram (kg), while it’s Rs 3,000-3,300 a kg for the upper bracket. However, prices have remained stagnant at Rs 500-700 a kg for lower grades.

S S Bagaria, former chairman of