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India's tea farmers see hope in co-ops

Tea farmer Bandana Rai

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Rajah Banerjee is a owner of Makaibari Tea Estates.

TEXT OF STORY

BILL RADKE: The tea trade in India hasn't changed much in 150 years, since British colonials started cultivating it there. But changes are brewing.

Raymond Thibodeaux has more from Darjeeling
in the Indian state of West Bengal.


RAYMOND THIBODEAUX: Workers pluck fresh shoots off tea bushes in the morning mist of Darjeeling. This is the capital of India's tea industry. But the small-scale farmers, and laborers rank among India's poorest. So now, they're trying to earn a better living by producing their own organic tea. Some 300 of them have formed a cooperative called Organic Ekta.

It's organic fair-trade tea brings higher prices from buyers, says co-op member Bandana Rai.

BANDANA RAI SPEAKS IN NEPALI

Bandana says she has more than tripled her income. She used the extra money to build a new kitchen and enroll her two sons in better schools. Organic Ekta was launched about three years ago with the help of Portland-based NGO Mercy Corps and Tazo, the tea arm of Starbucks.

RAJAH BANERJEE: It has given new hope, for now and for the future.

Rajah Banerjee is a fourth generation tea estate owner. He's one of Organic Ekta's main buyers. He says Darjeeling's $1.5 billion-a-year tea industry has been in decline for years and that Organic Ekta and other similar tea cooperatives are a good thing. He's already started offering shares of his Makaibari Tea Estates to his employees, essentially making them partners.

BANERJEE: To get people to be self-respecting, grass-roots entrepreneurs is the only way out. If it's your own cow, you know how best to milk it.

Still, some analysts question whether the cooperatives such as Organic Ekta can survive without backers such as Tazo and Mercy Corps. Bigger tea estate owners say organic teas have much smaller yields and are expensive to produce.

But Rubin Prabhan, a Mercy Corps director in Darjeeling, disagrees.

RUBIN PRABHAN: The Indian tea industry needed reform. We all believe that Organic Ekta is the change that the Darjeeling tea industry needed. And this could be the future of Darjeeling tea.

Prabhan says one day tea associations could own their own factories to process and package their teas and make even better profits from the tea headed for the shelves of a supermarket near you.

I'm Raymond Thibodeaux for Marketplace.

Darjeeling TeaXpress's picture
Darjeeling TeaXpress - Sep 17, 2010

As a exporter of Darjeeling Teas only including Organic Teas , we welcome this initiative, a small but meaningful step. Currently the Darjeeling Tea industry behaves like a oligopoly with power concentration in few hands. Such co-operatives ensures that we exporters can pay a fair price that goes directly to benefit the producers (in this case would be farmers). It also opens a venue for exporters to buy directly from the co-ops rather than be dictated by the terms of the big guys.

Darjeeling TeaXpress's picture
Darjeeling TeaXpress - Sep 17, 2010

As a exporter of Darjeeling Teas only including Organic Teas , we welcome this initiative, a small but meaningful step. Currently the Darjeeling Tea industry behaves like a oligopoly with power concentration in few hands. Such co-operatives ensures that we exporters can pay a fair price that goes directly to benefit the producers (in this case would be farmers). It also opens a venue for exporters to buy directly from the co-ops rather than be dictated by the terms of the big guys.

Darjeeling TeaXpress's picture
Darjeeling TeaXpress - Sep 17, 2010

As a exporter of Darjeeling Teas only including Organic Teas , we welcome this initiative, a small but meaningful step. Currently the Darjeeling Tea industry behaves like a oligopoly with power concentration in few hands. Such co-operatives ensures that we exporters can pay a fair price that goes directly to benefit the producers (in this case would be farmers). It also opens a venue for exporters to buy directly from the co-ops rather than be dictated by the terms of the big guys.

Fritz Fleischmann's picture
Fritz Fleischmann - Sep 15, 2010

You don't need to pay more for organic Darjeeling tea. The German importer Teekampagne has been offering it for many years. Its American offshoot, the Boston Tea Campaign, is certified by Green America and offers organically produced tea on the internet: http://bostonteacampaign.com.

J Allegretti's picture
J Allegretti - Sep 15, 2010

I really loved this story. I'm a daily tea drinker and I hope to be able to find some fair trade teas easily, hopefully affiliated with Organic Ekta.

Rodney North's picture
Rodney North - Sep 14, 2010

As a fellow importer of organic, Fair Trade tea we at Equal Exchange are glad to see a prominent brand like Tazo choosing to work with co-operatives of small-scale tea growers and we hope more tea importers and brands follow suit. For 11 years we've been working with co-ops of small-scale growers in Darjeeling (& elsewhere)like Sanjukta Vikas and buying their organic tea leaf for our Fair Trade tea line. Unfortunately, for most of this time the pervailing assumption in our trade was that the only realistic way to bring positive change to tea-growing communities was to work with the large scale plantations, which has had the unfortunate effect of re-inforcing the very patterns of ownership and control that kept so many so poor for so long. There were very few others who saw any need to work directly with the many small scale growers or any point in even trying. (Interestingly one ally who did share our perspective was Tea Promoters of India, a family run enterprise that helped pioneer organic tea production on their Darjeeling tea estates.) Today there are hundreds of thousands of small-scale tea growers around the world and we hope the tea industry will give them a chance by working with these farmers the same way many coffee importers have learned to buy directly from small farmer coffee co-operative.

J Ringer's picture
J Ringer - Sep 14, 2010

I have read about the tremendous use of pesticides to raise regular tea bushes so I switched to organic. I am willing to pay more to help the soil and people where the tea is grown.