GI registration & direct marketing suggested for Temi Tea by EXIM Bank


GANGTOK, September 2: The EXIM Bank has suggested that the Sikkim Government should work towards obtaining the Geographical Indication (GI) for Temi Tea as in the case of Darjeeling Tea.

In its study report ‘Sikkim: Export Potential and Prospects’, the Bank has recommended that the processing machinery at Temi Tea Estate should be upgraded and a conveyor belt system be introduced to increase efficiency. It also advised the State Government to get Temi Tea Fairtrade certified to facilitate its popularity internationally and help it get a premium price in the international market.
The Bank also suggested that the medicinal properties of Temi tea should be investigated.

“Sikkim has distinct advantage in tea production”, the study says informing that tea grown in Sikkim is famous by its brand name Temi Tea and is exclusively grown at the Temi Tea Estate in Temi region of South Sikkim.

The Tea Estate spreads over an area of 435 acres under plantation and produces 100 tones of tea per year. Out of the entire production, only 25 percent is sold in the local market at prices marginally higher than cost while the remaining 75 percent is sold through the auctions in Kolkata. The study points out that the entire production of Temi Tea has been certificate organic since June 2008 by Institute of Marketcology.

Till 2002, Temi Tea was sold under the Darjeeling category after which Darjeeling tea approached Tea Board to acquire a separate logo (certified trademark).
“Temi Tea is very rich in flavour, has medicinal properties, fetches one of the highest prices at Kolkata Tea auction and has high export potential”, says the study report.

Exported indirectly through the auctions conducted in Kolkata, the premium quality Temi Tea fetches about Rs. 2000 per kg on an average at these auctions, although there are times when auction rates touch even Rs. 3000 per kg, the study states.
The major export markets are Germany, USA, France, Canada and Japan.

The Bank suggested that if the Temi Tea is exported directly, it will fetch an even higher price, estimated at nearly double of what is getting now through auctions, particularly considering that in mature Western markets, there is an increasing demand for organic tea.

“However, direct exports entail undertaking strategic marketing, which cannot be executed by Temi Tea Estate on its own and needs external expertise”, said the Bank suggesting that focused workshops on export procedures and documentation as also export marketing and packaging would enable facilitation of Temi Tea exports from Sikkim.

Such workshops could be organized by local trade chamber in association with Tea Board, Director General of Foreign Trade or EXIM Bank, the study says.