The famed Darjeeling tea may have slip to a new production low in 2025, as changing weather patterns, a shortage of pluckers and mounting economic stress weigh on the region's gardens.
Businesses are testing new markets, tapping into domestic demand, and pushing the government for relief.
Competition from Nepalese teas -- which has duty free access to the Indian market -- has emerged as a lower-cost alternative to Darjeeling tea, challenging its viability.
Hemant Kanoria tells Niraj Bhatt why understanding the dynamics of the borrower's business is critical for the lender.
As India's tea exports reach their highest in years, a sharp rise in imports is raising concerns among producers. In 2024, India took the third spot in tea exports, pipping Sri Lanka after exporting 254.67 million kg (mkg) of tea, up from 231.69 mkg in 2023.
In the last three years, 20 gardens have changed hands, and 90 per cent of the buyers are from non-tea background.
Geopolitical headwinds leading to lower demand from export markets, coupled with lower domestic buying, have dragged the auction average of Darjeeling tea to its lowest level since 2015. Data from Calcutta Tea Traders Association (CTTA) shows that the average price of Darjeeling tea at Kolkata auctions for January-December 2023 was Rs 319.74 per kg. The last time it dipped below this level was in 2015 at Rs 285.71 per kg.
The alpona (artwork) on the steep, winding road leading to Makaibari bears testimony to the visit of G20 delegates for the second tourism working group meeting in April last year. The lush tea bushes, the delegates joining in for the moonlight plucking of Silver Tips Imperial first flush, a favourite of late Queen Elizabeth II, cut a picture of mystical magic. But it's not the Kurseong tea garden's only shining moment - the last few years have been busy for the estate and its bungalow.
The tea industry's cup of woes brimmeth - scanty rainfall and pest attacks have dragged down production in May, prices are lower than last year, and demand from some export markets is muted. Production in North Bengal - comprising the Dooars, Terai, and Darjeeling - is majorly affected; parts of Assam are also hit. Arijit Raha, secretary general, Indian Tea Association (ITA), said that the Tea Board numbers for April show a crop loss of about 9 per cent for North Bengal, compared to last year.
Closely watched by the world for any escalation, the Iran-Israel conflict is already showing early signs of stress for India Inc - longer deliveries, doubling freight rates, extended working capital cycles, and higher costs. For those yet to feel the heat, there is growing apprehension and nervousness over future developments, observed industry executives.
Tea planters and exporters are "extremely worried" over the possible impact on their shipments to Russia, India's second largest buyer of tea, in the wake of the Russia-Ukraine crisis. Western sanctions and disruption of payments in dollars as well as transhipments to Russia are expected as a fall-out of Russia launching an attack on Ukraine on Thursday. "The Russian market for Indian tea is extremely important as there are payment issues for shipments to Iran, another vital tea export destination. "Around 18 per cent of India's tea shipments go to Russia," India Tea Association chairperson Nayantara Palchoudhuri told PTI.
'IT companies do not have a large presence there either in terms of market and team. So, the impact of the war will be minimal. But West Asia is an emerging economy.'
Srei Infrastructure's vice-chairman -- and former Assocham president -- Sunil Kanoria discusses the Kanoria businesses and his impression of the Modi government with Ishita Ayan Dutt and Namrata Acharya.
The finance minister asked lenders to identify eligible borrowers and reach out to them and urged for quick implementation of a sustained resolution plan for the revival of every viable business.
Russia is among the top buyers of Indian tea, accounting for about 18 per cent of the industry's total exports.
The earlier perception of policy paralysis "has now changed" in the US in view of the new set of economic reforms unleashed by India.
The GDP growth fell to a nine-year low of 5.3 per cent in the first quarter, down from 9.2 per cent the same time last year.
Expressing disappointment over the RBI's move for not cutting the key policy rates, India Inc on Tuesday asked the government to take immediate action to revive growth and boost investments.
A lot depends on how Srei shapes up under the new administrator and his team, which is critical for investors' interest.
In order to deal with the issue of accumulation of wealth, Finance Minister P Chidambaram had said the time has come for a debate on imposition of inheritance tax.
The chambers said that the situation calls for urgent policy measures both by RBI and the government to salvage industry from further decline in industrial output.
In a letter to Prime Minister Manmohan Singh, Ficci president R V Kanoria said it is possible to have NIB "without violating any existing Act or rule as the intention is to speed up the decision making process and not bypass any law".
The Federation of Indian Chambers of Commerce and Industry (Ficci) president RV Kanoria calls for privatisation of Coal India Limited (CIL), the world's largest coal producer and India's public sector unit.
Development issues of vital interest to India are expected to receive focused attention at the G20 Summit beginning in Cannes on Wednesday, a Ficci Paper on the B20 Working Group on Development said.
India's gross domestic product growth has slumped to 6.5 per cent in 2011-12, the lowest in the last nine years.
Budget would have cascading impact on inflation and consumer demand.
The Budget is commendable, as without making any major tax changes it has targeted a 4.6 per cent fiscal deficit for 2011-12 by focusing on achieving 9 per cent growth.
Experts said a future rate cut would depend on the inflation.
Srei Infrastructure Finance is set to be the first Indian company to go for Islamic financing for over Rs 200 crore
SREI International Finance has roped in BIO of Belgium for a Rs 25 crore (Rs 250 million) investment for funding of infrastructure equipment and renewable energy products.
PE giants Apollo, Bain Capital and Advent International are keen to pick stake in Viom
Seeking stringent action against the perpetrators of the Pulwama attack, India Inc said 'now we have to make sure that the world knows that they can't mess with us'.
Yashodhan Kanoria of Ruparel College, Mumbai, had also bagged a gold medal at the International Chemistry Olympiad held in Greece in July.
The mandate will help further the development agenda in these states, with good governance and policy reforms taking centrestage
'GST will bring in much needed transparency and higher investments in the coming years and we hope that a few percentage points to India's GDP.'
Index heavyweights were the top losers along with bank shares.
'2017-2018 will be one of the best years for the country.' 'The wheel has finally started moving in the right direction. It should pick up momentum in the next 8 to 9 months to have a positive impact on the economy'
Assocham has also pitched for revision of the deduction of interest on housing loans to at least Rs 300,000 from the existing Rs 200,000
Modi is keen to restart big projects which are stuck for various reasons.
'The rate cut could have been higher in the current economic conditions which would have had a stronger impact on business sentiment and spurred investment in a big way.'
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