End duty-free tea imports: Tea Association of India

Tea Association of India seeks strict measures to prevent re-export of cheap imported teas, safeguarding Indian tea industry.

GUWAHATI

An association of tea planters and traders has sought stringent steps to ensure cheaper duty-free teas from African, Asian and South American countries are not imported by a section of traders, to be re-exported, at the cost of the image of the beverage produced in India.

The steps suggested include bailing the Indian tea industry out of “depression” by imposing 100% duty on bulk imports for re-export; taking penal action against traders who rebranded cheap, low-quality imported teas as Indian tea; and empowering the Tea Board of India with greater financial and legislative powers to root out the “frauds”.

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The suggestions follow reports that tea imports from several countries, including Argentina, Bangladesh, China, Kenya, Malawi, Tanzania, Nepal, Iran, Sri Lanka, and the United Arab Emirates, jumped by up to 288% during January-November 2024 when compared with the same period in 2023.

While the imports of higher-grade teas from China, Sri Lanka, and Malaysia commanded $11.72 per kg, $5.65 per kg, and $4.13 per kg, respectively, the cheaper teas from elsewhere cost an average of $1.5. The average price of tea for mass consumption in India is $2.5 per kg.

“The Tea (Distribution & Export) Control Order of 2005 mandates that any tea exported from India after blending with imported teas must be branded as multi-origin tea with the origins specified. The laws also require exporting the imported tea with at least 50% value addition from the date of import,” Sandeep Singhania, president of the Tea Association of India (TEA), said.