Weather Storm in a teacup
FROM
ISSUE #58 (31 AUG 2001 - 06 SEPT 2001)
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Nepali tea sellers say prices have slumped, but they cannot comply with demands of growers to raise prices. The Nepal Tea Association says a packet of tea that sold for Rs 220 a year ago does not fetch more than Rs 160 now, due mainly to overproduction. The dealers and processors used to pay Rs16-17 per kg of green tea, this is now down to Rs 10.50 per kg. Growers are demanding the purchase price of green tea be fixed at Rs 13 per kg. Nepal produces about eight million kilos of tea annually, and consumption is around seven million kilos. Nepal imports about 1.5 million kilos from India and sells some 450,000 kilos in India's West Bengal state. Nepal raised the import duty on tea from 10 to 25 percent this fiscal year and West Bengal has recently imposed a retaliatory 20 percent "luxury tax" on Nepali exports.
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