Tea Biz
Tea Biz

Episode · 6 months ago

Tea Biz News and Insight - March 18, 2022

ABOUT THIS EPISODE

HEAR THE HEADLINES – Russia and India Pursue Sanction Workarounds for Tea | Tea Party at the Top of the World | Tea Biz Previews the 20th Anniversary World Tea Expo 

| GUEST – Rajiv Lochan, founder of Lochan Tea and owner of the Doke Tea Estate in Bihar, India

| FEATURES – This week Tea Biz travels to Siliguri, India to speak with Rajiv Lochan, founder of the Doke Tea Estate in Bihar, a non-traditional tea growing region bounded by West Bengal, Sikkim, and Nepal. Lochan’s marketing mastery has literally put Bihar on the official map of India’s tea-growing regions.

The Rise of New Tea Growing Regions –India proudly claims Assam and Darjeeling, two of the world’s most famous tea-growing regions. Yet neither grew tea until 175 years ago and it took 50 years to achieve scale. Today Indian consumers drink 90% of the tea it produces. It is only recently that domestic consumption surpassed exports and the expansion of tea lands. Growing regions are inherently blessed with tea-enhancing terroir, but ideal soil conditions, altitude, and micro-climate still require the pioneering vision and gritty persistence of growers like Rajiv to achieve their potential. Rajiv graduated from university in 1973 with a master's degree in organic chemistry. He spent his early career managing established gardens where the skills he developed in cultivating award-winning teas were complemented by his efficient management. In 1998, the Indian government, noticing the strong growth in domestic sales, issued permits to expand tea lands. Adhering to biodynamic principles, Lochan planted drought-resistant cultivars in the loamy soil along the Doke River. He now produces green, white, and oolong teas and black fusion, a blend of Assam and Darjeeling teas. It took him 10 years to acquire and consolidate smaller plots into the Doke Tea Estate.

The Tea Bis podcast delivers tea news that you need to know, a recap of the week's major headlines, with commentary and cultural trends. Hosted by Danhol it is the voice of origin for tea professionals enthusiasts worldwide. Think of us as a digital caravan of storytellers, bringing authentic, floritative and exclusive stories to you weekly from the tea lambs. Hello everyone here. This week's headlines. Russia and India pursue sanction workaralns for tea, a tea party at the top of the world and the twentieth anniversary of the world t expo opens Monday in Las Vegas. Moren a minute, but first this important message. What makes a Perfect Cup of Ceylon tea? The Perfect Cup is from the tea businesses that ensure the protection of all the children living within their tea estates. We Salute Kailani Valley, tell a Wacky Lee, Bogajan, Thalawa, Harana and Elyptia tea estates. Support Save the Children Sri Lanka. Russia will find it difficult and expensive to replenish its teas. Applause, but tea cups there are in no danger of running dry. India and rush are currently discussing reactivating a scheme for trading rubles for rupees to avoid transactions in US dollars. The work arounds were devised a decade ago to trade rice, sugar and tea for Iradian oil. Tea Executives in Moscow right that Russian banks are working out how to make this scheme easier and faster. Indian sources confirm quote. While the exact...

...mechanism remains under wraps, perhaps some kind of martyr or designated currency arrangement will be worked out for certain essential items. Tea is likely to be included in the list of reciprocal items to be covered under the proposed arrangement, if indeed it materializes. and quote. According to the source who asked to remain unnamed, financing is only one hurdle to overcome. Quote. Logistics risks for direct shipments are still very high, but Russian companies are trying to find reserve routes to bring in tea and quote rights the Moscow tea executive quote. All of it is more complicated and costly than the originally no one but producers, traders, shippers sellers are all interested in finding ways to bring tea to Russia and will find a way, and quote said the executive, who asked that his name be withheld. African tea suppliers aligned with Russia are also likely to ignore sanctions and accept payment in rubles. China is not a party to Russians factions and has ample capacity to supply China with tea. Russians, however, prefer black tea to green. Sanctions that limit tea sales from India and Sri Lanka offer China and incentive to source large quantities of black tea for the Russian market. While it is purely speculation, early this month a state supported Chinese tea ex border like likely financed the Singapore Investment Group that purchased Duncan's industries out of...

...bankruptcy. Duncan's annually produces fifteen million kilos of black tea from fourteen tea gardens spanning Twelvezero hectors in India. US sanctions against Iran and Russia do not cover food and agricultural goods, including tea, but they make it risky to accept payments from targeted banks. Credit terms add to the risk, and newly imposed requirements to pay up front post challenges for Russian tea buyers. In addition, insurers and shipping companies insist on payment in dollars. Workarounds inevitably add to the cost of doing business. Financing, insurance, shipping expenses, logistics all increase at a time when Russian households face steep inflation. Quote for all this additional cost. Consumers will pay from their wallets and quote rights the Moscow tea executive business inside. Sanctions punish all parties involved, but halting trade is more painfully yet India is fully aware that openly trading with Russia is a pulverizedes Ukraine will draw heated criticism. Supporting Russia is a matter of national security. According to Indian officials, India used China and Pakistan as territorial threats, having lost a hundred thousand square kilometers to Pakistan in one thousand nine hundred forty eight and another hundred thousand square kilometers to China between nineteen fifty four and two thousand and fourteen. Russia supplies India with arms viewed as essential to its defense. The USS are, and later the Russian Federation, was India's largest defense supplier for decades,...

Indian armed forces remain heavily dependent on Russian spares and equipment necessary to manage their operational assets. Adequate defense preparedness is presently one of the cornerstones of India's foreign policy. Quote. Hence, despite their willingness to support D escalatition pressure tactics proposed by Western nations in respect to the currently ongoing conflict, Indian policy makers will probably ensure that defense supplies remained utter erupted and, quote explained, the official the Guinness Book of World Records has certified a May two thousand and twenty one tea break on Mount Everest as the highest tea party in history. Climber Andrew Hughes, who organize the high altitude tea break, writes that, quote, tea already was interwoven into life on an everest expedition, from the tea houses and lodges where we stayed along the trek to the countless hours spent with one another and a warm cup of tea in hand awaiting weather windows to climb onwards. Tea is something that we shared so regularly that it is impossible totach it from the overall Everest experience. Ten climbers join Hughes at Everest, based camp number two, to enjoin the Poly Melt Tea with Ginger and dainties in an altitude of six thousand four hundred and ninety six meters. The team carried both packet and loose leaf tea's, including peppermint aid digestion and Camomial to AIDS sleep. Climbers witnessed first hand the effect of low atmospheric pressure, which...

...speeds boiling. Achieving a rolling boil at sea level occurs at a hundred degrees Celsius. Above fifteen thousand feet, water boils at eighty five degrees centigrade, about a hundred eighty five degrees Fahrenheit. The twenty anniversary of the World Tea Conference Plus Expo Opens Monday, March twenty one, through Wednesday at the Las Vegas Convention Center. The event is co located with the bar and restaurant. Expo activities include tastings, educational presentations, hands on training at workshops and networking opportunities. Single admission to both events is available on site. Exhibitors include tea producers, teaware and tea traveler manufactures and t utensil makers. This year, Eva and features several tea brands along with four hundred bar and restaurants suppliers. It's not too later register. Visit WWWWA, world t x woolcom for more information. T bills will be out the show and report next week. How well are bender in and there are man in Bengaluru reports on this week's to you auction prices. India tea price support for the weekend in twelve march twenty twenty two. All eyes main and the EUCLINE crisis. Concerns continue about exports. I was in their auctions did not take place last week. In the south of the dox market suffered as exporters remain resistant. coachings only about fifty nine percent up takeoff Orthodox leaf, with Hind Stun Unilever landing much needed support. Kuno to saw a similar trend, with CITC leaf performing better than Orthodox and dog link. First flush teas have begun to make the entry into the market. We cut of its Sunday chowsery of Ring Tong t state, who...

...says crop and quality of the first flush should be decent and while exports, which tajeeling is heavily dependent on, maybe affected. Sun Jack Points out silver lining, and he says there's a huge potential for good quality dudgeling teas which meet international food safety standards to be available to the domestic market, once again reiterating the need to build the Indian domestic market beyond try such as bigger concern is to see how mechanisms can be enforced to prevent non dageling teas from selling as actually a cause which has been fighting actively would last year. And now word from our sponsor. Hello. I'm Boten, a passionate tea drinker and the inventor of the ultimate tea machine, the brewmaker. One preparation is keyed to making fine tea. Sequential steepings delivered the best taste possible and unlocked the true value of whole leaf teath and botanicals. Brue automates that process without using any pots or capsules. The simple to operate smartphone control device stores steeping profiles to consistently make great tea at the push of a bottom. Brew also reduces time, waste and energy. That's because I engineered the brew to Remember Control Settings for temperature, brewing time and quantity. Using my patented process lets you stack steep simply and conveniently. This way, peebles travels to still agree India to speak with Rosiev will, com founder of the dog to you stayed in Bihar, a non traditional tea ruining region bounded by West Bengal, sucum and nepaul. The comes malls, three of marketing has literally put my horror on the official map of indust growing region is India proudly claims the Soumon Dargling to...

...the world's most famous tea growing regions. It neither groupe until about a hundred seventy five years ago, and in both cases it took fifty years more to achieve scale. Today, in the INN consumers drink ninety percent of the tea that the country produces, but it's only recently that domestic consumption surpast exports and required the expansion of tea lands. Growing regions are inherently blessed with tea enhancing to are but ideal soil conditions, altitude and microclimate still require the pioneering vision and gritty persistence of growers like Rajiv to achieve their potential. Ji Graduated from university in Nineteen seventy three with a master's degree in organic chemistry. He spent his early career managing established gardens where the skills he developed in cultivating award winning teas were complemented by his efficient management. In one thousand nine hundred and ninety eight, the Indian government, noticing the strong growth and domestic sales, issued permits to expand the tea lands, adhering to Bio dydamic principles, not implanted fout resistent cultivars in the loamy soil along the dough river. He now produces green, white and blue Wong teas and black fusion. A boy and of a sound and nursing tea. It took him ten years to acquire and consolidate smaller plots into the doughties day. Welcome to the program Rogi. You describe India's domestic market for new regional teas. We start with eastern India. Bengali's...

...are very, very appreciative of the jelling tea. Calcudiad the direct connection to this growing reason to be a tacity. You know, it's very unusual to find out that we hard. He's also liked Jeli. They understand Dadgeli and they are now opening up. Yes, this is something good, though Black Fusin is a b hearty which is a mix of dadgeling and a Sam. That's why we call it fusing, because we sit right in front of the cheling and the gold wings are coming from the jelling to pull this thing. The cold, fifty degree planes and the strength of Assam mixed together. That siggest sure or is important to their buying decision. They understand, they listen, the very appreciative the coming question. They take the samples. I have avert, a small pack of about eighteen t and gramps which I sell for a hundred piece, and then they buy six hundred rupees. But the packets where you consumers get their first taste of tea's grown and processed in before. Online stores are still not a stopping all these things and it is very easy. especialty teas are only available in the big cities where there are the lounges or the speciality, I would not say even the tea specialty shops or the beverage speciality shops. These are food stores. Amazon has taught India how to sit at home and very, very comfortably. Corona has really lubricated this market called the online shopping. All the ladies. They're very happy sitting at home buying from this thing, even whatever is not necessary. There by the experiment Amazon are really done wonders. In India, like Cocacola, our websites built...

...by local browns for fhisticated is delivery by mail over courier, the Swan. That's our website. That this is online. We do everything, they handle the ordering and they total thing. ALLECIA, money and all I own. Does it take online customers to get their tea? It takes maximum three days. Three days is a very fair this thing, because we also loose fedex, the Hl Blue Dot, all these past and possible and the DD say ups everything. whichevern and Celbrity, you know very, very luckily, since Bandomic, I would say, it's extremely connected to all over India, even east. East is very, very conveniently connected to celebrity. Indian no longer limits where tea growers can establish their gardens direct result of opening non traditional growing regions. Your innovative processing and tireless marketing of green tea and rulongs have earned the brand and international following, but that represents only a small volume of the million kilos you produce locally. Overseas you get higher prices, but according to the Tea Board of India, only twenty two percent of Indian households spend more than two hundred rupees, about two dollars and fifty since us, per month on tea. Put price do you charge local customers? PIPIGRAMS when we sell is about only about fifteen of peks. That has almost seen. But the quality qualities better than data. The reason of people buying outside, that is the quality. Yeah, that does great, great for the standard. And all these forty five events on Cilicity are cream Sam city cities. So people...

...are not switching, you know, and we we fight it very easy. We package our teas and celebrity and most of our market is nearby. We are in this site. They being goal so we can keep equality the shopkeepers or distributors. They preferred to in stack. That is easy to sell. Yeah, so US quality control is not that difficult. We have got one system of packaging, one mindset. That is for our local city. See, pack and dling packs is nothing much. The green teas bigger than the CHALLE and when it comes to export cityc to China, there's are all those huge bulk you know, like twenty five tons container and maybe twenty five containers with this complete and container to this company contender to defens times for them. We produce very little, but we are basically trading, you know. We are so saying teas from all over the reason, different blends and then package and said so we handle about a million kilos of tea every year. The people who are basically the sourcing people, they know that we can keep them the same blend throughout the year because we are going to source it from hundreds of people. We do our blending with see hundreds of samples and do the blending and then give them a standard blend, you know, which they want throughout the year. You produces like judge or Williams and Meger. They walk into the room, they always say we are the third largest producer of India. We are the second largest, and that gives them a negative point. Oh, this is a very big producer, so he's going to sell us only his produce, which he can give a little cheaper than us, because that is his cost of production, artist cost of total buying and selling and other things also, and the profitability of the producer himself. So these are...

...total frient economics, which people the big buyers. They understand cold team market in India is still not be cheering. This is just the beginning. More and more players will change the scenario of Indian tea market, the huge market, if it opens up to really solve the industries problem. Intrigue by what you turned today's podcast. Would you like to learn more from our problem networking team, is journals, the t experts. Remember to visit the TV is website for more comprehensive coverage. That's wwwert life in BIS bisycom. Thanks for listening. Fare well, till next week.

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