European GI tag boost for Kangra tea

Lalit Mohan

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Geographical indicator or GI is a sign used on products with a specific geographic origin. The tag prevents its use by a third party whose product does not conform to the applicable standards, and protects the producers. The European Union’s recognition of the GI of Kangra tea, which was issued in 2005 by the Centre, comes as a boost for the struggling tea industry in Himachal Pradesh.

Against 17 lakh kg per annum production recorded in 1998, the Kangra tea output has fallen to 8 lakh kg. From 4,000 hectares in the 1980s, the total area under tea plantation in the district has come down to 2,000 hectares.

The average yield is 230 kg per hectare against the national average of 1,800 kg. Kangra tea accounts for just 1 per cent of the total 90 million kg tea produced in the country. This makes it difficult to promote the tea on a commercial scale in any of the markets. The limited production is attributed by experts to the low yield and lack of initiative among the tea planters.

KG Butail, former president of the Tea Farmers Association of Kangra, feels the European Union’s GI recognition could become a unique selling point for Kangra tea. “With the GI tag, buyers will be able to identify the area-specific tea produce.”

Kangra tea, which is produced in both black and green varieties, is grown in areas along the foothills of the Dhauladhars from Dharamsala to Palampur. Besides the areas of Gopalpur, Baijnath, Nagrota and Bir in Kangra district, it is also grown in Jogindernagar in Mandi district.

Guddu Pathania, general manager of Mann tea estate, one of the biggest in Dharamsala, says, “We have already been exporting our tea to Europe but with the GI tag, its demand will increase, especially in the West. The recognition will help get better prices.”

The major sale centre for Kangra tea is Kolkata. Last year, it was auctioned at more than Rs 226 per kg. Large tea estates have been selling Kangra tea under their own brand names. Mann tea estate sold its tea for Rs 1,000 per kg.

Kashmir was earlier a market for Kangra green tea, say experts, but has now been taken over by Assam tea. Old-timers say efforts are needed to revive this market since taking the produce all the way to Kolkata adds to the transportation cost and causes a dent in the profits.

Most of the tea plantations in Himachal are more than 100 years old, which is cited as one of the reasons for the low produce. The Tea Board of India had launched a scheme under which 25 per cent subsidy was being given to farmers for replantation. However, not a single planter from Kangra applied for the scheme.

“Kangra’s tea gardens are not taking the benefit of government incentives for fresh plantations since most have small landholdings and the cost of replanting is quite high,” says Aman, a tea estate manager. If they take up fresh plantations, the farmers would be left with no income for six to seven years, he adds. Only 2 per cent have large landholdings and the rest work on less than a 10-kanal area.

Butail, who is also former president of the Kangra Valley Small Tea Planters Association, however, maintains that the age of plantations has not resulted in the decline in quality and quantity. “Small and scattered holdings, absentee planters, abandoned gardens, non-availability of skilled labour and tea auction centres at faraway places are some of the factors due to which Kangra tea hasn’t been able to gain enough market space,” he asserts.

Butail says the Central government has been giving long-term financial support for horticulture development and similar help is needed to promote Kangra tea. “Loans should be offered at an interest rate of 4 per cent,” he feels. Though the Kangra tea industry is paying less than Rs 2 lakh per annum as cess for producing black tea, there is a lot of paperwork that needs to be done, he points out. “If the cess is done away with, it would be a relief for the tea planters of Kangra.”

Aroma sets it apart

Kangra tea is known for its aroma. It is blended with other teas by leading tea brand companies due to its aroma. Kangra tea is exported mainly to the European countries and the US.

What tag means

• GI or geographical indicator tags are issued as per the Geographical Indications of Goods (Registration and Protection) Act 1999.
• The tag is issued by the Geographical Indication Registry under the Department of Industry Promotion and Internal Trade, Union Ministry of Commerce and Industry.

Taste of history

• Tea was introduced in Kangra in 1849 by the British, who annexed the area after the Anglo-Sikh war.
• Dr Jameson, then superintendent of botanical tea gardens, identified the region for tea cultivation. He started cultivation of tea in the Kangra valley.
• Before Independence, most of the tea gardens in the region were owned and managed by the British.
• After 1947, the ownership came into the hands of the locals.