No plans to bring down import duty on tea: Scindia

The government today said it has no intention to bring down the import duty on tea immediately, to protect the interest of the domestic industry.

"Well, not currently," Minister of State for Commerce and Industry Jyotiraditya Scindia told reporters when asked if the government plans to reduce the import duty on tea, which is 100 per cent at present.

Though he did not mention the level of comfort, Scindia said that the country's tea production this year is likely to reach the threshold of a billion kg.

Speaking at a seminar on tea here, he stressed on the need to augment domestic production to compete in world trade, where Kenya and Sri Lanka are emerging as big competitors for India.

India exported a little over 200 million kg of tea last fiscal, recording 10 per cent growth over the previous year in value terms.

"There are lots of supply side constraints which we are trying to address through the Special Purpose Tea Fund. We are urging the industry to take up replantation, so that India could regain its number one position," Scindia said.

The government had raised the budget allocation for the tea sector to Rs 800 crore in the XI Plan from Rs 350 crore in the X Plan. A special emphasis has been given to replanting and rejuvenating old plantations for improving production and productivity for competitive sustenance.

India, the second largest producer of tea in the world, produced 979 million kg last year. Also the largest consumer of tea in the world, India accounts for about 28 per cent of world production and 14 per cent of trade.

There are about 1,600 tea estates in India. The industry employs more than two million people.