Reduce import duties on tea to improve quality of domestic produce

Over the years, the tea packaging industry in India has witnessed turmoil. Input quality of raw materials has seen a sharp decline, yet prices reach an all time high with every passing auction. One of the leading causes of this phenomenon is the ‘protection’ that the tea gardens and planters enjoy through high import duty on imported teas (100 percent import duty, along with an additional 4 percent countervailing duty). 

Teas sourced from international origins, such as Kenya, China or Argentina, have similar or better taste profile than some of the Indian origin teas. Further, teas from these origins can be soured at a 25 percent to 40 percent discount when compared to Indian origin teas (despite shipping and transportation costs). However, the high import duty restricts access to such teas into the Indian market thereby providing the Indian tea plantations a competition free environment to operate in.