Guwahati, May 29: On Wednesday, industry leaders expressed their concerns regarding the increasing influx of low-quality tea into India during a session with the Parliamentary Standing Committee on Commerce. They emphasized the need for stricter regulations on tea imports.

The committee, led by Rajya Sabha member Dola Sen, conducted meetings with various stakeholders, including producer associations, exporters, and labor department officials in Guwahati.

The Tea Association of India highlighted a significant discrepancy between the tea import figures reported by the Tea Board of India and the actual imports, suggesting that many imports are not being declared on the tea council portal. This could indicate that the real import numbers are two to three times higher than the official statistics.

“A large portion of the duty-free tea entering the country is being re-exported as 'Indian Tea,' which violates national regulations. Much of this tea originates from countries like Iran, Vietnam, and Africa, and its re-export as 'Indian Tea' tarnishes the reputation of genuine Indian tea, adversely affecting prices and the image of Indian tea,” the association informed the committee.

Additionally, a significant amount of these low-cost imported teas is sold in the Indian market as domestically produced, further undermining the prices of Indian tea.

The planters' association has called for the establishment of a minimum import price for tea to curb the entry of inferior quality teas and suggested implementing quantitative restrictions and anti-dumping duties on tea imports.

According to the India Tea Association, there has been a notable increase in tea imports over the past three to four years, particularly from Kenya, which has worsened the oversupply situation in the domestic market.

“This surge has intensified the oversupply issue, leading to declining prices even amidst a production shortfall expected in 2024,” stated the largest tea producers' body, advocating for stricter import regulations to protect the Indian tea industry.

TAI also mentioned that the currently approved chemicals for pest control have limitations, and trials on new-generation molecules have shown promising results against pests.

Industry representatives pointed out that varying Maximum Residue Levels (MRLs) for the same chemicals across different countries pose significant challenges for international trade. They urged for the harmonization of MRL standards.

“The government should negotiate with the EU, USA, and Japan to establish a reciprocal agreement that recognizes lab reports from NABL certified labs in India, or identify labs approved for this purpose, allowing Indian goods to be tested before shipment without the risk of rejection upon arrival,” they added, while also addressing other challenges faced by the industry.