Image Of Indian Tea Hit By Re-Export Of Cheap Tea: TAI
They have sought the Sri Lanka testing model for all teas imported for re-export
Image Of Indian Tea Hit By Re-Export Of Cheap Tea: TAI
The TAI head said that unless steps are taken for the abolition of the re-export of imported teas as the ‘Indian Tea’, it would break the financial backbone of the already struggling industry
An apex body of tea planters and traders has opined that the image of Indian tea has been hit by the re-export of cheap tea imported from African and Asian nations.
The Tea Association of India (TAI) said that most of the duty-free tea that has been imported is being re-exported as ‘Indian Tea’ in violation of the laws of the nation.
“Most teas being imported are cheap quality teas from origins including Iran, Vietnam and Africa.
Re-export of these teas as ‘Indian tea’ is giving a bad reputation to Indian tea, undermining the price of Indian tea to the detriment of genuine exporters and image of Indian tea,” said TAI president Sandeep Singhania.
He said it decreases the price of Indian tea, negatively impacting the financial sustainability and wage-paying ability of the industry. The TAI head said that unless steps are taken for the abolition of the re-export of imported teas as the ‘Indian Tea’, it would have disastrous consequences on prices and the tea economy which would break the financial backbone of the already struggling industry.
He said that the viability of the tea producer has been under acute stress in the absence of fair price discovery of Indian teas. In keeping with the Prime Minister’s call for ‘Atmanirbhar Bharat’, the Indian tea industry has sustained production and employment levels in spite of acute economic stress over the last decade due to stagnant prices, Singhania stated.
TAI demanded the Tea Board of India, which is empowered with greater financial and legislative power, to take steps to root out the fraud and take all necessary steps as per law to bring violators to task. The tea planters and traders’ body also demanded to adopt a testing model as adopted by Sri Lanka for all teas imported for re-export and consider a ban on duty-free imports for re-export in bulk.
