Luxmi Group Partners With Darjeeling Small Tea Growers to Launch 'Makaibari Collective'

KOLKATA — Tea major Luxmi Group, owner of the iconic Makaibari garden in Darjeeling, is joining forces with independent small tea growers in the hills to establish an open-source brand titled 'Makaibari Collective'. The initiative was announced on Monday by Luxmi Tea Managing Director Rudra Chatterjee.

According to the company, the new brand will focus on everyday Darjeeling tea. It will feature standard, good quality tea sourced both from the Makaibari garden and from independent small growers who produce high-grade regional tea. To maintain quality standards, the blends will be tasted by J. Thomas & Co. and certified as genuine Darjeeling tea by the Tea Board.

While Makaibari's high-end first flush and second flush teas—marketed under the 'Makaibari Tea Treasure' label—will continue to be sold through existing channels, the 'Makaibari Collective' will make everyday Darjeeling tea available at comparatively lower price points. The target market for this new offering will be primarily domestic, with no current plans for export.

The initiative is designed to address pricing challenges faced by small tea growers (STGs) in Darjeeling, whose production volumes have remained stagnant over the past four to five years due to a lack of proper value realization for their crops.

Under the new model, farmers will not only receive payment for their tea based on contribution, but will also secure a share of the profits. This profit-sharing mechanism aims to ensure that farmers receive earnings equivalent per kilogram to what Makaibari commands, establishing a level playing field between the estate and independent growers.

The 'Makaibari Collective' brand is scheduled for launch around Diwali this year. For its first year of operations, Luxmi Group plans to source approximately 25 percent of the total volume for the brand from small tea growers. This will involve procuring around 10,000 kilograms of tea from STGs to be blended with approximately 30,000 kilograms of Makaibari tea.

Currently, total production from the Makaibari estate stands at approximately one lakh kilograms, with major export markets including Japan, Germany, the United Kingdom, and the United States.

"The decision by Luxmi Group to create an open-source brand alongside small tea growers is a notable supply chain development. By introducing a profit-sharing model and transparent quality testing, the company is addressing stagnant productivity and pricing challenges at the producer level. For traditional industries like tea, building inclusive models that connect established brand equity with independent farmers can stabilize domestic supply while creating fairer economic outcomes for local growers." — Dr. Shishir Gupta, Founder & CEO, StartupLanes