04-08-2025
Tea Association of India requests DGFT for review of duty-free tea imports
Guwahati:
Tea Association of India
(TAI) requested the Directorate General of Foreign Trade (DGFT) for Review and Regulation of
Duty-Free Tea Imports
under
Advance Authorization Scheme
.
Indian Tea Industry has been witnessing a steady growth in the quantum of tea imported to India. While in 2019 15.85 million kgs of tea where imported and in 2023 the imported tea stood at 23.65million kgs.
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TAI stated that the actual export of Tea of Kenya to India in 2024 (as published by Tea Board Kenya) is huge which is 17.13 MKgs vis-à-vis 5.26 MKgs of tea in 2023 which is 226% ahead of last year and in 2025 Kenya exports tea to India till March is 3.9 MKgs which is 117% higher than 2024 for the same corresponding year.
TAI added that to establish an equilibrium with regard to Supply and Demand situation, Tea Board issued the direction to curtail production, November 30, 2024. The industry also passed through adverse inclement weather conditions till the month of August, leading to a drop in production by about 110 mkgs. in the year 2024. Despite the resulting drop in production as stated above, it was noted that post September 2024 a surge in import led to poor market sentiments leading to a drop in prices by an average of Rs.60, thus adversely affecting the tea market sentiments , neutralizing the entire effort made by the Tea Board and industry to bring an equilibrium between demand and supply for the stability of the prices in tea market.