(MENAFN- KNN India)
Kolkata, Jan 30 (KNN) The Tea Association of India (TAI) has raised significant concerns over substantial discrepancies between officially reported tea import figures and actual import volumes, according to TAI President Sandeep Singhania.
The inconsistencies point to widespread violations of import and re-export regulations, potentially undermining the Indian tea industry's integrity and economic viability.
Current regulations under the Tea (Distribution & Export) Control Order, 2005, stipulate stringent requirements for tea exports.
Products labeled as "Indian Tea" must be exclusively sourced from domestic plantations, while blends containing imported tea must be designated as "Multi-Origin Tea."
Additionally, imported tea intended for re-export must undergo a minimum value addition of 50 percent and be exported within a six-month timeframe. The Tea Board has mandated declaration of all transactions on its Tea Council portal to ensure compliance.
Industry analysis has revealed alarming disparities, with reported import figures showing up to a tenfold difference when compared to export records from major tea-producing nations including Kenya, Nepal, Vietnam, and Iran.
This substantial mismatch primarily stems from importers' failure to properly declare imports on the mandated portal, effectively obscuring the true scale of tea imports.
Further compounding the issue, duty-free imported teas designated for re-export are reportedly being sold domestically under the "Indian Tea" label, damaging India's international reputation and adversely affecting price levels across both export and domestic markets.
In response to these challenges, the TAI has called for comprehensive reforms, including enhanced enforcement of import declarations and implementation of financial penalties for non-compliance.
The association advocates for a thorough review of duty-free import provisions for re-export purposes and has recommended strengthening the Tea Board's regulatory authority.
Additional proposals include the introduction of import testing protocols similar to those employed in Sri Lanka and the activation of the North Indian Tea Council to oversee trade practices.
The association warns that failure to address these issues promptly could have severe repercussions for the already challenged tea industry.
(KNN Bureau)
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