Tea Industry Seeks Duty-Free Import Review

The Tea Association of India has urged the Directorate General of Foreign Trade (DGFT) to reassess duty-free tea imports, citing a surge in imports from 15.85 million kgs in 2019 to 23.65 million kgs in 2023. The association argues that unrestricted imports, particularly from Kenya, are threatening domestic producers already grappling with production cuts and adverse weather conditions. This call for action reflects broader concerns about protecting India’s tea industry, a critical component of the agricultural economy employing millions.

The rise in imports has coincided with global trade challenges, including U.S. tariffs and supply chain disruptions. The Tea Board is advocating for protective measures, such as higher duties or quotas, to ensure fair competition for Indian tea growers. Simultaneously, the industry is exploring branding initiatives to promote “Made in India” tea globally, leveraging the Rs 20,000-crore Export Promotion Mission. The government’s response will be crucial in balancing trade liberalization with the need to safeguard local producers, especially in states like Assam and West Bengal.

The tea sector’s challenges highlight the delicate balance between global trade integration and domestic priorities. By addressing import policies, India can strengthen its position in the global tea market while supporting rural livelihoods. The DGFT’s review could set a precedent for other agricultural sectors facing similar pressures, shaping India’s trade strategy in a protectionist global environment. As the government navigates these complexities, collaboration with industry stakeholders will be key to ensuring sustainable growth and competitiveness.