WITDA wants import duty on tea to be reduced

Not only has there been a shortfall in productivity due to delay in rains, but the quality of tea has also suffered, the body says

Tea traders from western India today demanded that 100 per cent import duty on tea be reduced in wake of the shortfall in production of the commodity because of truant rains in north east and south India. The Western India Tea Dealers Association (WITDA) wants the Tea Board of India to consider its demand for gradual relaxation in import duty of tea so as to provide consistant supply at lower rates.

According to WITDA president and chairman of Wagh Bakri Group, Piyush Desai, not only has there been a shortfall in productivity due to delay in rains, but the quality of tea has also suffered.

“Because of less rain in April and May there has been a shortfall of 21.37 million kg compared to same period last year. This is a matter of concern. We have made representation to the Tea Board about the shortfall and urged them to consider import of tea from Kenya and Sri Lanka,” Desai told reporters here.

He said that import of about 40 million kg from each of the countries would be enough to suffice the shortfall this year. “This will also keep the rising price of tea under check,” he added.

According to Desai tea production north-east in April-May 2014 was 149 million kg against 170.37 million kg in April-May 2013, indicating a shortfall of 21.37 million kg. However, the production in south for the same period this year was 91.53 milllion kg, as against 90.61 million kg last year.

The tea season begins in month of April and continues till October.

“Though there will not be further shortfall of tea in coming days as the rains have resumed in the tea growing regions, but the quality if tea has suffered. As a result, supply of quality tea could be affected this year,” Desai added.

He said that in 2013-14 total tea production in India was around 1150 million kg out of which nearly 170 million kg was exported while rest was consumed in the domestic market.