India is prone to impose restrictions on tea commerce with Nepal, as duty-free exports of low-quality tea from the neighbouring nation being blended with Darjeeling tea is hampering the latter’s model globally.
The Union commerce ministry has already introduced in laws to examine the inflow of cheaper tea from Nepal, whereas the parliamentary standing committee on commerce has really useful a evaluation of the Indo-Nepal treaty to include stringent necessities for a “certificate of origin” on tea imports from Nepal.
A big part of importers are passing on inferior Nepal tea as Darjeeling tea at a lot decrease costs, inflicting big monetary loss to Darjeeling planters. Some native merchants are additionally re-exporting the Nepal tea to international markets as Darjeeling tea. The premium genuine Darjeeling tea can also be promoting at a lower cost within the international market in consequence.
While the Tea Board of India says it has began performing on the commerce ministry’s suggestions, small tea backyard house owners, largely promoting their product in auctions, say Nepal continues to be persevering with to dump its tea in India.
The Revised Treaty of Trade between India and Nepal signed on October 2009 is legitimate as much as 2023. It lets every celebration exempt, on a reciprocal foundation, mutually determined main merchandise from primary customs obligation and quantitative restrictions.
Tea is amongst such merchandise eligible for preferential therapy. But exports of Indian tea entice a 40% import obligation in Nepal, whereas tea imports from Nepal entice zero obligation. This results in unhampered and simple inflow of substandard Nepal tea being offered and re-exported as premium Darjeeling tea, which diluting the worldwide model picture and affecting costs, the parliamentary panel mentioned in its 171st report.
The panel has really useful organising a strong administrative framework and import inspection regime, and establishing an NABL-accredited high quality management lab in Darjeeling district to examine every consignment of imported tea. The panel really useful an inspection by the Directorate General of Trade Remedies concerning the dumping of tea, whereas wanting into the chances of an anti-dumping obligation.
A Tea Board official informed FE the board has already fashioned a committee on the problem following a path from the ministry of commerce and business to attract and check samples at an NABL-accredited lab. This is to examine if imported tea is FSSAI-compliant.
However, PK Bhattacharya, secretary normal of the Tea Association of India (TAI), mentioned only some parameters have been being checked.
The tea board has directed importers to tell it concerning the storage areas of imported tea inside 24 hours in order that the board might draw samples. “Importers will have to ensure that origin of imported tea is mentioned in all sale invoices or contracts and there is labelling and proper display of the origin of tea,” the Tea Board official mentioned.
The board has prohibited registered patrons from mixing imported tea with Darjeeling, Kangra, Assam orthodox and Nilgiri orthodox teas, which have geographical indications (GI). Importers and exporters need to receive a clearance certificates from the tea council portal earlier than import or export of tea, the Tea Board official mentioned.
According to TAI, duty-free imports of Nepal tea have been on the rise. “The fall in production of Darjeeling tea is matched by a corresponding rise in quantity of tea imported from Nepal. While the causes for diminishing production are multifarious, like changing climate, garden closures, excessive absenteeism among tea workers, unviable plantation and increasing cost of production, there is no denying that import of Nepal tea has caused the primary dent in the fortunes of the Darjeeling tea industry,” Bhattacharya mentioned.
Source: www.financialexpress.com”