Tea Industry Seeks Higher RoDTEP Rates to Boost Exports

New Delhi, Jul 20 (KNN) In a significant move to enhance the competitiveness of Indian tea in global markets, the tea industry has called for increased rates under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme.

This demand comes as part of pre-budget proposals submitted by leading industry bodies to the government.

The Indian Tea Association (ITA), in its pre-budget memorandum, highlighted that the current RoDTEP rate for bulk tea stands at 1.7 per cent (free on board), with a cap of Rs 6.70 per kilogram.

The association has urged the government to raise this rate, emphasising the need to maintain India's competitive edge in international tea markets.

Similarly, the Tea Association of India (TAI) has proposed that the RoDTEP rate for tea should surpass the earlier Merchandise Exports Incentive Scheme (MEIS) rate of 5 per cent. This increase is deemed necessary to preserve Indian tea's global market position.

The RoDTEP scheme, introduced in January 2021, aims to refund exporters for embedded taxes and duties that were previously non-recoverable. As of March, the scheme had provided support amounting to Rs 42,000 crores for over 10,500 export items.

In addition to higher RoDTEP rates, the industry has put forth several other proposals. The TAI has requested the imposition of an anti-dumping duty on Nepal tea imports to protect genuine Darjeeling tea exports and prevent the misuse of its Geographical Indication (GI) tag. This measure is seen as crucial for maintaining the integrity of Indian tea in the global market.

The ITA has sought exemption from TDS on cash withdrawals, citing the lack of banking infrastructure in tea-growing regions. This proposal aims to alleviate financial constraints faced by tea producers in remote areas.

To facilitate the modernisation of the tea plantation sector, the industry has called for concessional customs duty on specified machinery imports. This measure is expected to help upgrade production facilities and improve overall quality and efficiency.

The ITA has also called for increased fund allocation for tea development and promotion for the 2021-26 period. This request is particularly aimed at restoring incentives for large growers that were discontinued under the Tea Board's new scheme. The association argues that enhanced financial support is crucial for improving quality and productivity in the sector.

These proposals reflect the tea industry's efforts to address challenges and strengthen its position in both domestic and international markets. As the government prepares its budget, the industry awaits a response to these crucial requests that could shape the future of Indian tea exports.

(KNN Bureau)