Tea Association Seeks Review Of Duty-Free Import Scheme Amid Rising Imports

New Delhi, Aug 5 (KNN) The Tea Association of India (TAI) has formally requested the Directorate General of Foreign Trade (DGFT) to review and regulate duty-free tea imports under the Advance Authorisation Scheme, citing concerns over the growing volume of tea imports affecting domestic market stability.

India's tea import volumes have shown consistent growth over recent years, rising from 15.85 million kilograms in 2019 to 23.65 million kilograms in 2023. The trend has accelerated significantly in 2024, with Kenya emerging as a major supplier to the Indian market.

According to data published by the Tea Board of Kenya, Kenyan tea exports to India reached 17.13 million kilograms in 2024, representing a substantial 226 percent increase compared to 5.26 million kilograms recorded in 2023. 

The upward trajectory has continued into 2025, with Kenya exporting 3.9 million kilograms to India through March, marking a 117 percent increase over the corresponding period in 2024.

The surge in imports has coincided with challenging conditions for domestic tea production. The Indian tea industry experienced adverse weather conditions through August 2024, resulting in a production decline of approximately 110 million kilograms for the year. 

In response to supply and demand imbalances, the Tea Board issued directives on November 30, 2024, instructing the industry to curtail production.

Despite these production adjustments aimed at market stabilisation, TAI reports that import volumes surged after September 2024, creating negative market sentiment and contributing to an average price decline of Rs. 60. 

The association argues that this import surge has undermined the Tea Board's efforts and industry initiatives to achieve equilibrium between supply and demand, thereby compromising price stability in the tea market.

The association's petition to the DGFT reflects broader concerns within India's tea industry about the impact of increased imports on domestic producers and market dynamics, particularly in light of production challenges and regulatory efforts to maintain market balance.

(KNN Bureau)