MP panel: Nepal brew hits hill tea market: Identified the indiscriminate influx of teas from Nepal as the key element that is affecting the international market of the world famous Darjeeling Tea.

Over the past few years, stakeholders of the tea industry have time and again demanded restrictions in unbridled import of tea from the neighbouring country

Avijit Sinha   |   TT  |  Siliguri   |    18.06.22  : The Parliament Standing Committee on Commerce has identified the indiscriminate influx of teas from Nepal as the key element that is affecting the international market of the world famous Darjeeling Tea.

“The committee is distressed to note that the unhampered and easy influx of substandard tea from neighbouring countries especially Nepal is jeopardising the tea industry of India. It is further appalling to observe that the imports of inferior quality of teas from Nepal are being sold and re-exported as premium Darjeeling tea which not only is diluting the global brand image of India but is also affecting domestic tea prices,” reads a report that was submitted by the committee on June 15 in the Parliament.

The committee, sources said, had taken the task to study the issues which are affecting the Indian tea, and especially the Darjeeling tea, which is cherished by tea drinkers across the world.

It interacted with tea associations and trade union leaders to gather information about the issue and has also obtained details from the Union commerce ministry.

Based on the findings, the committee prepared and submitted the report to the Speaker of the Lok Sabha and the Chairman of the Rajya Sabha last Wednesday.

Over the past few years, stakeholders of the tea industry have time and again flagged the Nepal tea issue and have demanded restrictions in unbridled import of tea from the neighbouring country.

“A section of people argue that only around 22 million kilos of tea are being imported from Nepal and that it cannot affect the Indian tea industry that makes 1,300 million kilos of tea. But what they do not realise is that the entire tea imported from Nepal is orthodox and not of CTC variety. This makes some unscrupulous exporters of Indian teas to export this tea as Darjeeling tea,” he said.  

In the report, the committee has mentioned that as inferior tea originating from Nepal is being wrongfully branded as Darjeeling tea, the premium prices of authentic Darjeeling tea in the global markets is experiencing an undercut.

“That is why the Darjeeling tea industry is facing distress these days. The committee has rightly recommended the need to have a relook at the existing trade treaty of India and Nepal. There should be a proper mechanism to keep a steady watch on the tea imported from Nepal so that if it is sold here or is re-exported, it should bear proper certificate of origin,” said a representative of the Tea Association of India who has gone through the report. 

The tea board, sources said, has also passed an instruction to all the 87 tea estates of Darjeeling not purchase green tea leaves from outside the area demarcated for Darjeeling GI.

“This has been done to stop the influx of green tea leaves from Nepal as it is a porous border,” an official pointed out. 

Among other issues, the committee has recommended initiatives by the Centre and its agencies, including conferment of land rights to tea workers and their families, enhancement of wages and implementation of welfare schemes for the tea population, sources said.

Courtesy & source