Small tea growers see a major threat in the proposed move to slash import duty on tea from 100% to 50% by 2019. The organised industry too said the proposal under the ASEAN Free Trade Agreement (AFTA) may lead to a surge in imports to the world’s largest black tea producing country.
“Small tea growers express apprehension that a reduction in import tariff on tea will adversely affect the small tea growers community, who contribute 45% of India’s tea output, now,” Bijoy Chakraborty, president of the Confederation of Indian Small Tea Growers Association, wrote in a representation to Union Commerce Minister Suresh Prabhu.
Local populace
Pointing out that the small tea growers were mainly locals, Mr. Chakraborty wrote in the letter that the economic uplift of this rural populace would be thwarted if tea from neighbouring countries like Indonesia and Vietnam was imported into India.
“Import liberalisation on tea under AFTA,” will affect the livelihood of these people, he contended. The organised tea industry too apprehends a surge in imports. Noting that the ASEAN Free Trade agreement signed by India provided for a reduction in import duty on tea, Tea Association of India secretary general P.K. Bhattacharya said this was a cause for concern.
Tea Board chairman P.K. Bezbaruah said the move would harm the Indian tea industry especially the segment that produces medium quality tea.
India’s tea imports rose from 20.2 million kg in 2014 (valued at ₹272.6 crore) to 21 million kg in 2016 (valued at ₹285.4 crore). Between January and September 2017, imports were 14.8 million kg (provisional figure) against 15.7 million kg a year earlier.