Darjeeling tea exports seen hit by Gorkha unrest

By Debiprasad Nayak

MUMBAI (Reuters) - Exports of the premium Darjeeling tea may be hit by the strike over fresh demands for a separate state for the Gorkha people that shut down the famous tea district, a top official of Tea Board said on Thursday.

Protesters clashed with police in Darjeeling hills after the strike called on Tuesday by Gorkha Janmukti Morcha (Gorkha People's Liberation Front) triggered violence and forced the government to call for the army on Thursday.

"It is certainly affecting the tea industry. Transport of tea has completely been stopped, which is affecting the tea auctions in Kolkata," said Basudev Banerjee, chairman, Tea Board of India.

Exporters as well as domestic buyers depend on the Kolkata tea auction to meet their demand for Darjeeling tea. Kolkata is the capital of the India's eastern West Bengal state, where Darjeeling is located.

"The production is going on but I can't get the tea into the market," he said.

Darjeeling produces about 10 million kg of high quality tea famous for its flavour. It fetches about five to six times the price of the normal CTC (crush, curl tear) tea.

India exports the Darjeeling tea, mainly to Middle East, Pakistan, Russia, Germany. Exports in 2007 was about 6 million kg and India has targeted an increase of 20-25 percent this year, Banerjee said.

The peak harvesting season for Darjeeling tea is April-June.