India’s Venerated Tea Is Latest Victim Of Climate Change

Tea harvest in the rain in Assam
Tea harvest in the rain in Assam
Jack Fereday

DIBRUGARH — A blazing sun is shining on Jyoti Khaund's plantation, where rows of green foliage stretch as far as the eye can see. This hot and damp district in the Brahmaputra Valley, in the northeastern state of Assam, is where India's best tea is produced. But Khaund is frustrated this morning looking over his land: 20 of his 35 hectares are covered with dried plants.

"Once again the rain was too heavy," says Khaund, who grew up here and has been running the plantation for 27 years. "Last April the flood had clogged the ground and smothered the plants' roots. We replanted but, as you can see, they are dying again."

In Dibrugarh, many producers suffer from this strange condition — a short period of devastating rain followed by appalling drought. This wasn't always the case. The rain used to gradually intensify through the year creating an ideal climate to produce tea.

Khaund remembers this as if it was ancient history. "More than 15 years ago, rain started falling very slowly in March, then increased in June, July and reached its peak in August. But this year, we were flooded as soon as April and then struck by a period of drought in August. We can no longer predict the weather."

Alarming forecasts

Khaund's testimony is not surprising to Rajiv Bhagat, who works at the Tocklai Tea Research Institute in Assam's Jorhat city. The study he conducted for the United Nations Food and Agriculture Organization shows that the average temperature has risen by 1.3 °C over the past century in the region. Meanwhile, the annual amount of rain has dropped by 200 millimeters.

We can no longer predict the weather

"For about 30 years, the weather has been upside down," says Bhagat, an expert on global warming. "The distribution of rainwater is less and less balanced. Extreme droughts and floods are becoming recurrent in India but also in other producer countries like China."

The Tocklai Tea Research Institute, which is surrounded by gardens, is a peaceful place. But in Bhagat's office, statistics and infographics paint an alarming picture. They estimate that maximum temperatures would rise by several degrees in the next 35 years. According to Bhagat's forecasts, it could prove impossible to produce tea anywhere in the region by 2050.

Pouring it hot in Varanasi — Photo: Devesh Matharia

Assam tea alone accounts for 17% of the global tea market. That amounts to about 600 million tons of tea a year — half of India's total production — and employs more than a million people. Consequently, the whole industry is looking for ways to adapt to climatic changes.

On each side of the road that winds up the Brahmaputra Valley, sprinklers have been erected. Some producers have begun to water their land as soon as August. During floods in April and July, electric pumps were used to drain rainfall.

These techniques are vital but expensive. "It costs too much, so we only use it as a last resort," says Manish Bagaria, a young owner of 350 hectares of land at the edge of Dibrugarh. He uses pumps, which need generators and fuel to work, but he has not yet invested in sprinklers. Last year's drought decreased his production by 20%. "If the weather continues to change like that, we will have to change as well within the next two years," he says.

In the future, they may consider using genetically modified organisms.

"You need to be a strategist," says Romesh Boruah, 60, who runs Tocklai's local branch in Dibrugarh.

Dressed in a khaki fishing jacket and sitting behind a desk cluttered with maps, he says his team of researchers examines each piece of land closely. "We tell the producers where they should settle down to avoid floods and drought," he says, sipping black tea. "We cannot grow tea anywhere any longer."

At the laboratory in Jorhat, Bhagat's team clones plants that are resistant to extreme conditions. In the future, they may consider using genetically modified organisms.

Can these measures save Assam's tea? For now, there has been no major impact on production. But producers are worried about their cost of production rising with the measures needed to cope with climate change, making it harder to compete on the global market.

"For now we handle things, but for how long?" asks Bagaria, who worries about global warming's effect on tea and, more broadly, agriculture. "In any case, above a certain temperature, we will no longer be able to grow good quality tea. If we don't do anything to stop this change, the industry will have a hard time surviving."

Keep up with the world. Break out of the bubble.
Sign up to our expressly international daily newsletter!

Air Next: How A Crypto Scam Collapsed On A Single Spelling Mistake

It is today a proven fraud, nailed by the French stock market watchdog: Air Next resorted to a full range of dubious practices to raise money for a blockchain-powered e-commerce app. But the simplest of errors exposed the scam and limited the damage to investors. A cautionary tale for the crypto economy.

Sky is the crypto limit

Laurence Boisseau

PARIS — Air Next promised to use blockchain technology to revolutionize passenger transport. Should we have read something into its name? In fact, the company was talking a lot of hot air from the start. Air Next turned out to be a scam, with a fake website, false identities, fake criminal records, counterfeited bank certificates, aggressive marketing … real crooks. Thirty-five employees recruited over the summer ranked among its victims, not to mention the few investors who put money in the business.

Maud (not her real name) had always dreamed of working in a start-up. In July, she spotted an ad on Linkedin and was interviewed by videoconference — hardly unusual in the era of COVID and teleworking. She was hired very quickly and signed a permanent work contract. She resigned from her old job, happy to get started on a new adventure.

Others like Maud fell for the bait. At least ten senior managers, coming from major airlines, airports, large French and American corporations, a former police officer … all firmly believed in this project. Some quit their jobs to join; some French expats even made their way back to France.

Share capital of one billion 

The story began last February, when Air Next registered with the Paris Commercial Court. The new company stated it was developing an application that would allow the purchase of airline tickets by using cryptocurrency, at unbeatable prices and with an automatic guarantee in case of cancellation or delay, via a "smart contract" system (a computer protocol that facilitates, verifies and oversees the handling of a contract).

The firm declared a share capital of one billion euros, with offices under construction at 50, Avenue des Champs Elysées, and a president, Philippe Vincent ... which was probably a usurped identity.

Last summer, Air Next started recruiting. The company also wanted to raise money to have the assets on hand to allow passenger compensation. It organized a fundraiser using an ICO, or "Initial Coin Offering", via the issuance of digital tokens, transacted in cryptocurrencies through the blockchain.

While nothing obliged him to do so, the company owner went as far as setting up a file with the AMF, France's stock market regulator which oversees this type of transaction. Seeking the market regulator stamp is optional, but when issued, it gives guarantees to those buying tokens.

screenshot of the typo that revealed the Air Next scam

The infamous typo that brought the Air Next scam down

compta online

Raising Initial Coin Offering 

Then, on Sept. 30, the AMF issued an alert, by way of a press release, on the risks of fraud associated with the ICO, as it suspected some documents to be forgeries. A few hours before that, Air Next had just brought forward by several days the date of its tokens pre-sale.

For employees of the new company, it was a brutal wake-up call. They quickly understood that they had been duped, that they'd bet on the proverbial house of cards. On the investor side, the CEO didn't get beyond an initial fundraising of 150,000 euros. He was hoping to raise millions, but despite his failure, he didn't lose confidence. Challenged by one of his employees on Telegram, he admitted that "many documents provided were false", that "an error cost the life of this project."

What was the "error" he was referring to? A typo in the name of the would-be bank backing the startup. A very small one, at the bottom of the page of the false bank certificate, where the name "Edmond de Rothschild" is misspelled "Edemond".

Finding culprits 

Before the AMF's public alert, websites specializing in crypto-assets had already noted certain inconsistencies. The company had declared a share capital of 1 billion euros, which is an enormous amount. Air Next's CEO also boasted about having discovered bitcoin at a time when only a few geeks knew about cryptocurrency.

Employees and investors filed a complaint. Failing to find the general manager, Julien Leclerc — which might also be a fake name — they started looking for other culprits. They believe that if the Paris Commercial Court hadn't registered the company, no one would have been defrauded.

Beyond the handful of victims, this case is a plea for the implementation of more secure procedures, in an increasingly digital world, particularly following the pandemic. The much touted ICO market is itself a victim, and may find it hard to recover.

Keep up with the world. Break out of the bubble.
Sign up to our expressly international daily newsletter!