Increasing imports of tea a matter of great concern

Alternatively, tea exports had taken a success as evident from the decline within the amount exported and the worth realised, Bhansali mentioned.

Rising imports of tea into India is a matter of nice concern and it could be detrimental to the tea sector, in accordance with the United Planters’ Affiliation of Southern India (UPASI), the apex physique of planters. Prashant Bhansali, President-UPASI, in a press assertion said that through the first quarter (January-March) of the present 12 months [2021] the import has proven a big leap of 139.36 % year-on-year.

“Imports of tea throughout 2020 was estimated at 23.40 million (M).Kgs as in opposition to 15.85 M.Kgs within the earlier 12 months, a rise of 47.63%. The home tea sector has been witnessing rising value of manufacturing resulting from excessive enter value and excessive wage value and any greater consumption of teas via import could have a telling impact on this sector which caters to a big section of the inhabitants residing within the distant areas,” he added.

Tea is a vital agro-industry that employs 2.12 lakh growers and 11.65 lakh staff, of which greater than 70% are ladies and therefore essential from the inclusive progress mannequin pursued by the Authorities of India. Fifty per cent of the manufacturing within the nation comes from the small grower sector, UPASI reviews.

The plantation commodities together with tea have been uncovered to worldwide competitors since April 2001, when the quantitative restrictions have been lifted as per the commitments beneath WTO. The signing of the ASEAN Settlement in 2009 had additional opened up the Indian tea market to plantation producing nations like Indonesia and Vietnam.

Below the ASEAN Settlement, the import duties have been steadily decreased since 2009 for tea and the present import tariff for ASEAN nations, Indonesia and Vietnam is 45%. Import of tea from Nepal beneath SAFTA is nil obligation.
Bhansali prompt that the Authorities of India ought to carefully monitor the import of tea and in addition implement provisions of Tea (Distribution & Export) Management Order 2005, wherever crucial.

Alternatively, tea exports had taken a success as evident from the decline within the amount exported and the worth realised, Bhansali mentioned.

“For example, tea export was decrease by 42,430 tonnes in 2020 and the declining development continued through the first 4 months of 2021. Although there was some restoration anticipated on the export entrance, the scarcity of containers, particularly food-grade containers and elevated freight fees had turned out to be an impediment for plantation exports together with tea from India,” he mentioned.

Amid these disadvantages, the non-payment of MEIS from 1st April 2020 and dis-continuation of the scheme itself from December 31, 2020, with none new incentive scheme in place had added additional problem to the prevailing distressed scenario, he added.