Following the meeting with representatives of Darjeeling Tea Association, the board took the decision to appoint an agency to take account of situation of tea, The Financial Express stated on Friday. [break]
"We will appoint an agency soon. Although tea import from Nepal has almost been stopped, there could be a few cases where tea from the neighboring country is entering India," the daily quoted Basudeb Banerjee, the board´s chairman.
Banerjee said the board will take necessary measures accordingly to completely stop tea imports from Nepal.
Darjeeling tea producers have been exerting pressure on the local government to check the imports, stating that rising imports of Nepali tea has lowered the price of local tea which is having tough time competing with cheaper Nepali tea.
Nepali tea is similar in terms of taste and quality as compared to Darjeeling tea.
Small retailers have turned to Nepali and Himalayan teas due to huge difference in prices between trans-borders towns. Nepali tea is being exported at Rs 160 to Rs 240 per kg to India where it is selling for Rs 400 to Rs 480 per kg, lower than Darjeeling tea which is selling for Rs 480 to Rs 640 per kg.
Local producers have been attributing the inflow of Nepali tea to differences in prices between the two countries.
Indian Tea Association estimates that India imported around 6.5 million kg of tea from Nepal during January and October 2009.
"That is the reason why the prices of Darjeeling tea can´t go up much," Subodh Pal of Contemporary Tea was quoted by the daily.
Though Darjeeling Tea Board has stopped importing Nepali tea, local bought leaf tea factories have been importing tea from Nepal.
"We are monitoring 87 tea gardens in Darjeeling. None of them is buying tea from Nepal. But Nepalese tea is being sold to bought leaf factories in Siliguri," Sandeep Mukharjee, secretary of Darjeeling branch of Darjeeling Tea Association, told the daily.
According to National Tea and Coffee Development Board of Nepal, Nepal exported a total 8,600 tons of tea to different countries during fiscal year 2007/08.
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