Ministry calls for re-export of tea within 6 months

KOLKATA: In a bid to check the movement of imported teas into the domestic market, the Union commerce ministry has directed the tea industry to export teas that enter the country for re-exports within six months. The stricture comes at a time when the Indian tea production is significantly lower, and there is a general apprehension that unscrupulous traders may use the situation to sell imported tea in the domestic market for quick returns.

Talking to ET, senior officials of the tea industry said: “In ‘06, the industry expects a production of 930m kg. Out of this, nearly 805m kg will be consumed domestically. The industry will require another 195m kg for exports. Therefore, the total requirement this year is 1,000m kg. A shortage of nearly 70m kg is expected this year. We fear that some traders may import cheap teas to India and sell them domestically.”

The commerce ministry directive also says that Tea Board of India should keep a close watch on the origin of the imported tea. In the last couple of years, quite a good volume of cheap teas has entered from countries like Vietnam, Indonesia and others.

A senior official of Tea Board said: “The ministry understands that in this age of globalisation, imports cannot be banned. But there should be some minimum conditions which should be fulfilled for importing teas.”