Kevin -
I don't know what the 'K' stands for in KGFOP.
The standard sizing of grades [CTC] are as follows :
BPS 8-10
BOP 10-12
BP 12-18
PF/OF 18-24
PD 24-30
D 30-on
The numbers denote the mesh size, or the number of openings per inch.
Smaller numbered meshes, therefore, have larger openings, and
consequently catch bigger tea granules.
Now, although the Indian Tea manufacturers by and large follow this
system of gradation, there are by no means bound to follow it exactly
to the last inch. So we have one estate manufacturing size 12-18 grades
and calling it a BP, another estate marking the same size as a BOPS
['s' for small], while yet another estate makes a size 14-18 and calls
it a BP also.
Since this grading system is not binding on the manufacturers, the end
produce - the graded tea can, and does vary from estate to eatate in
terms of size.

The valuation of a lot [ usually a lot denotes one invoice of between
20-40 bags] is done by a team of tea tasters who, after sampling the
tea, mark it for it's cup quality, appearance, and infusion. A Halmari
valued at Rs 140 means that the tea broker has assigned a value of that
amount/per kg to that lot. As against this, the price is the actual
price realized for the same lot in open auction. Invariably, teas sell
at a discount to their valuations. Earlier, teas sold Rs 5 up or down
of their valuations were then considered to have been fairly/accurately
valued. In these modern times, the difference is valuation and price
sometimes exceed Rs 20-30. What this says for the system of valuations
today is obviously not very complimentary.

As for prices being low, thats always been the story. Like I wrote
before, a top quality estate will be happy with a Rs 100 [very happy
indeed!] average for the season. In the auctions only a handful of
estates manage to do this. The fact that the end consumer in India buys
tea in retail form at a markup of Rs 50 or more seems to suggest that
that packeteers also keep a reasonably healthy margin for themselves.
Once the teas leave indian shores, the mark-ups become phenomenal. It
is more likely [NOTE - more likely ] that a tea bought by a packeteer
at Rs 80 in the auctions will finally be sold to someone in the UK or
the States at 10-20 times it's original purchase value.

It'll be nice if a packeteer [ or someone who knows about it] can help
us here by trying to determine what the cost of retail packing and
selling is really like. Maybe then I'll join that battle.

Michael:
The Darjeeling area manufacturers a total of approximately 10 million
kgs of Darjeeling tea a year. However, every year more than 30 million
of 'Darjeeling' teas are sold all over the world. The picture is clear
- there is widespead adulteration going on, in the sense that a lot of
orthodox teas from other areas are being packaged as Darjeeling and
sold. The vast majority of the tea drinking public cannot distinguish
between an authentic Darjeeling and a copy so that's the loophole then.
Many packeteers also go the middle route - they buy 10 kgs of
Darjeeling tea, mix it with, say 40 kgs of some other area orthodox,
and sell it as Darjeeling. In this case also, it escapes thr palate of
all but the most discerning of tea drinkers.
The Indian Government has now mandated that all packets have to carry
the official Darjeeling tea logo [if it's not carrying it - it's
definitely a copy or a mix] and also the contents have to be 100%
Darjeeling. I hope this helps in reducing the adulteration of
Darjeeling tea.
As far as the Assam VS Darjeeling tea argument goes, I suppose it
ultimately boils down to one's personal choice. Assam teas can never
have the flavour of Darjeeling, and Darjeeling teas can never have the
strength of liqour of an Assam. My personal way of drinking, apart from
that one extremely vicious cup in the morning, is to mix an Assam [
Banamalie] with a Darjeeling [Makaibari] in equal ratio. It gives me a
very pleasing combination - the best of both world, if you want to
phrase it that way then.
On a technical level - you have to appreciate that to maintain a
consistent good quality, it is easier to do so if you are manufacturing
50000 kgs as against 500000 kgs. Apart from this, in terms of the teas
themselves - I find Darjeeling [standalone] quite quite thin in liquor,
and although the flavour is great, my bet is the younger plantations
coming up in Sikkim, as well as some Orthodox assams can, and will,
give Darjeelings a run for their money. What I'm saying is this - there
are now a few orthodox making assam estates [eg. mokalbarrie ] who
fetch equally fancy prices like the Darjeelings for their STG's and so
on, and the quality of their produce is easily comparable to a top
Darjeeling. Darjeeling teas have big advantage though- savvier
marketing [ and as anyone will tell you, savvy marketing is more than
half the game won nowadays!]. Darjeeling teas however, can never, even
if they try, reach anywhere close to the same fullness of cup and body
that Assam teas are known for.
Regards
Sid.