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January 2003 Certified Specialty
Tea Trek
Nilgiri
by Michelle D. Williams

nilggiri A steam train winds its way through the Nilgiris, or "blue mountains," of India's southwesternmost corner. It puffs through thick, tropical rainforests and up the sides of steep hills to crests that gaze out over the Indian Ocean. Massive gray elephants, their hides crusted with mud, lift their trunks in salute as the train chugs past. Passengers peer out their windows, eyes gleaming at miles and miles of electric green hillsides, shimmering with tea plants.

   The Nilgiri region is one of 29 districts in the Tamil Nadu state of South India. Recent migration into the area has made it one of the country's most heavily populated regions. Some 50 million people make their homes there, including the Todas tribe, a nature-worshiping people native to these hills for centuries. Nilgiri's Ootacamund Hill Station was once a retreat area for Raj officials in Madras, and today the region is still one of most popular spots for vacationing. In fact, every year in January and February, groups of tourists from India and abroad climb aboard the little steam train to visit the Nilgiri mountains for the annual Tea and Tourism Festival.

   In addition to being drawn to the beauty of the area, it was also tea that inspired one of the first Englishmen to make his home in these mystical blue mountains. John Sullivan began experimenting with tea farming in the Ketti Valley using China jat seeds, and he recommended large-scale tea cultivation to the British government as early as 1835.

   But it wasn't until 1859, after the Opium War between China and Britain had ended, that the Nilgiri region was planted with tea for commercial production. At the time, enterprising businessmen were ready to get rich on tea. Gardens in Assam and Darjeeling had already been established and were on their way to successful production.

   Tea production boomed in the mid-1900s thanks to the collapse of the coffee industry during the Great Depression. In Nilgiri, land under tea production grew from about 7400 acres in 1920 to more than 22,000 acres by 1950. During the late 1950s and 1960s, after India gained independence, tea production expanded further. Under British colonial rule, large numbers of South Indians traveled to Sri Lanka to work on tea plantations. A repatriation program established by the new Indian government helped many people native to the Nilgiri hills return home from Sri Lanka. Because many of these people had gained considerable knowledge of tea production, the Tamil Nadu government encouraged them to set up their own farms, and government-sponsored tea cooperatives were established to help the small farmers with processing. During the 1980s, global tea prices surged. At the same time, India and Russia signed a trade agreement, and tea exports from Nilgiri to Russia increased dramatically.

   Unfortunately, global economics can be like mountain railway systems, with many twists and turns. In recent years, tea prices have dropped as production has increased in countries such as Vietnam and Argentina. With the break up of the Soviet Union, the Russian market collapsed, and the newly formed Commonwealth of Independent States (CIS) began buying tea from all over the world, instead of solely from India. According to an article in the March-May year 2002 issue of
Contemporary Tea Time magazine, exports have dropped in South India by eight percent. Meanwhile, during the 1990s, the tea industry in neighboring Sri Lanka took measures to increase productivity and rehabilitate farms. In 1992, the Sri Lankan tea industry went from nationalization to private sector management. Estates were replanted with clonal plants and new varieties, and factories were modernized. Sri Lanka's production is mostly orthodox black tea, selling to western Asia and northern Africa, with increasing numbers of customers in the CIS region. According to the article, "India's loss has been Sri Lanka's gain."

   Over the past couple years, many gardens in South India have bordered on bankruptcy. Production costs are on the rise, and while domestic consumption has increased due to population growth, domestic consumption per capita has decreased, thanks to a rise in soft drink consumption. Nilgiri tea producers are now scrambling to find a niche in today's competitive tea market.

   The Nilgiri region produces nearly 100,000 tons of tea per year, accounting for approximately one-quarter of India's total tea production. In 2000, verdant tea shrubs graced nearly 150,000 acres of land in the blue mountain region. The majority is grown on large privately owned estates, where 60 percent of the work is accomplished by women. As in other areas of India, the estates offer accommodation, education, medical facilities, and places of worship for laborers and their families. Well-known estates include Chamraj, Burnside, Dunsendale, Korrakundah, Craigmore, Havukal, and Tiger Hill.

   Approximately 50 percent of the tea produced in Nilgiri is exported. Primary buyers at this point include the United Kingdom, Europe and parts of the CIS. Most of the tea produced is CTC black, and many buyers use it for blending, to make teabags and concentrates, and for flavoring. In addition, Nilgiri teas are often used to manufacture iced tea blends, because they don't cloud.

   While CTC production is dominant in the region, the Nilgiri tea industry has begun to focus more on orthodox teas in an effort to compete in more diverse markets. Jack Strand, owner of Strand Tea Co., a retailer/wholesaler in Portland, Ore., says that because world tea prices have been so depressed, Nilgiri tea producers must work even harder to market their orthodox teas. Nilgiri has been hit harder in the market crisis than other tea-growing regions in India, because it does not have the long-standing reputation of other growing areas. "Darjeeling and Assam have marketed themselves much better over the years," Strand says. "Assams were associated early on as breakfast teas. They were blended into all of the breakfast blends, and some were straight breakfast teas, which appealed to the Western market, particularly in Europe. So they jumped out-they had a huge market from the start. Nilgiris were never a part of that."

   Strand also points out that Nilgiris have always been considered afternoon teas because they are so much lighter than Assams. "They have the characteristics of a Ceylon tea but without the astringency," Strand says. "They can range from woodsy to fruity. They have a nice fragrance, and they have beautiful leaves. But Nilgiris have never had the name power of Ceylons in the West. People think, 'Oh, afternoon tea. I want a Darjeeling or a Ceylon.'"

   But Strand says that the taste of Nilgiris is especially unique because of the lack of tannins in the tea. "It allows for a range of flavors to come out in the absence of the astringency-it's much less than its neighboring Ceylon teas and certainly much less than Darjeelings and Assams."

   Orthodox Nilgiri teas tend to be light in color but strong in body. "It's a subtle taste that is hard to describe," says Sanjay Gupta, president and CEO of Tea Connexions, a Canadian tea-buying group and distributor specializing in leaf-grade teas from India. "Nilgiri tea has a mild aroma but plenty of body, so it tastes like tea. And it's a self-drinking tea-it's good without milk or sugar."

   Because of their strong body and versatile nature, Nilgiris are used in India more frequently in the production of chai. Strand explains that while some chai purists believe that the steamy, spiced beverage must be made only with bold, malty Assams, others feel that Nilgiris bring a unique taste characteristic to chai. At the same time, Nilgiris appeal to many locals because they are much less expensive and considerably easier to transport than Assams, because of their location.

   The lower price of Nilgiri teas is partially due to a lack of strategic marketing on the part of Nilgiri producers, but it is also because Nilgiri plants offer much higher yields. According to James Norwood Pratt in his book New Tea Lover's Treasury, the Nilgiri region has only 10,000 more acres than the tea region in Darjeeling, but it produces 10 times the amount of tea per year. Thanks to Nilgiri's ideal climate, which enables year-round harvests, the average estate can yield more than 3000 pounds of processed tea per acre.

   Situated just above the equator, the Nilgiri region is quintessentially tropical, with consistently warm, tea-nurturing temperatures and up to 250 inches of rain that falls evenly throughout the year. While harvesting and processing continues year-round, the best teas are produced from December to March, between the region's two monsoon seasons. Thirty-five percent of Nilgiri's annual production is harvested at this time, as these "seasonal teas" offer more flavor and pungency.

   Most tea produced in Nilgiri is black, but in an effort to diversify and expand market range, some farmers are beginning to produce small amounts of green and oolong tea. "Some of the better Nilgiris have a little bit of green leaf in them, and it makes them very interesting," Strand says. "It adds a depth of flavor that you wouldn't normally get. I would say that it's only been in the past few years that [producers] have even thought about doing this, because of the changing market."

   Organic teas are another area that Nilgiri farmers are turning to for diversification. While India in general is beginning to focus more on biodynamic and organic farming, Nilgiri has one of the oldest organic tea estates in the country. According to Manik Jayakumar, an importer with Qtrade International, the Oothu tea garden has been producing organic tea in Nilgiri for more than 13 years. "As a single plantation, they are probably producing the largest amount of organic tea in the world," he says. "They are good teas, otherwise they wouldn't be producing and selling them everywhere."

   Several other gardens in Nilgiri, including Chamraj, Korrakundah and Dunsendale, are producing organic teas, and industry experts say that organic farming is likely to increase in Nilgiri as producers fight to stay competitive. Indeed, the most significant issues for the Nilgiri tea industry today are finding new markets inside and outside of India, promoting its orthodox teas and ensuring that production continues. While domestic consumption is high in India, it has begun to wane. The industry has begun various campaigns to promote the health benefits of tea drinking, and according to
Contemporary Tea Time magazine, the Indian Tea Board is trying to generate internal tea trade. South Indian tea growers recently visited estates in the northern regions to gain a better understanding of what consumers in that area are looking for. During their visit, the southern growers had the opportunity to show northern buyers samples of their teas and to discuss efforts that have been made to upgrade the quality of teas grown in South India.

   Supply in the work force also has become an issue in recent years, because young people have so many other employment options, in fields such as technology and business. And, as is the case with premium and specialty teas in general, educating consumers is key in driving the Nilgiri market.

   Tea Connexions sells a premium Nilgiri that Gupta believes is the best of the Nilgiri region. His customers, however, are not generally interested in Nilgiris, even though their taste characteristics are similar to mid-level Darjeelings. "If people knew about Nilgiri teas and were able to purchase them, more would drink them," Gupta says. "Most people we deal with have never heard of them."

   Gupta says that those customers who buy his Nilgiris do so because they are so much less expensive than the comparable Darjeelings. The suggested retail price for his premium Nilgiri is $4.40 per 3.5 ounce-much less than a Darjeeling would cost. "This is a great tea to introduce to someone on a budget, but who loves tea," Gupta says.

   Strand has had similar experience. Many of his customers won't buy Nilgiri teas because they simply are not familiar with them. "When they are fairly new, and they say they want a Ceylon-like taste without the astringency, we always recommend Nilgiris, and inevitably, they like them," he says. It's a steep hill to climb, but Nilgiri tea producers seem to be committed to building a new reputation. If only that steam train could make its way around the world, spreading the news to tea lovers far and wide. Perhaps Nilgiri could then take its place in the global tea market next to its cousins in North India.


Michelle D. Williams is a freelance writer and editor and frequent contributor to Fresh Cup Magazine. She lives in Portland, Oregon.



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