Mumbai, June 12 - 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) triggerred 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.
BAD TIMING
"This is the second flush season, when we get the best quality darjeeling tea. If the situation doesn't improve India may lose some of the export markets," Banerjee said.
Before the arrival of the June monsoons, Darjeeling gets a brief second set of showers in May, which kicks off the second flush season.
The first flush normally ends in late April. After the second flush, quality deteriorates in the monsoon fetching lower prices.
There has been substantial impact economically, said Kaushik Basu, secretary of Darjeeling Tea Association.
"We have not been able to assess the losses. We need some more time."
The Gorkhas, who are ethnic Nepalis, have been demanding a separate state called "Gorkhaland" be carved out of the eastern state of West Bengal, to protect their culture and heritage.
Dozens of tourists were stranded in Darjeeling as buses and taxis stayed off the roads.
"Tourists are the main buyers of darjeeling tea in the local market. But everything is closed now and our sales are nil," said Girish Sarda, a Darjeeling-based trader.