| R M Kaushik, chairman of IMTEF, said the government should take a balanced view on demand and supply issues relating to tea. |
| IMTEF feels that over the last couple years, the focus has shifted only on addressing the supply side factors and exports have been relegated as non-priority. |
| "As a result, the merchant exporters have either been left to fend for themselves and face the onslaught of either origins, where exports remain the one and only priority" he said. |
| Kaushik pointed that a number of benefits that were instituted to promote exports were withdrawn. For instance DEPB on tea has been reduced to one per cent from two per cent. |
| Moreover, the introduction of value added tax (VAT) makes it mandatory for exporters to first pay VAT and then seek refund three months later. |
| This will increase working capital blocked and reduce competitiveness compared to other tea origins who do not face such costs. |
| Indian Merchant Tea Exporters' Forum had proposed a WTO consistent freight subsidy proposal to offset the natural disadvantage in freight faced by Indian tea exports but, this apparently has not been accepted. |
| "The latest is the announcement of the tea (distribution and export) control order 2005, which in an era of liberalisation actually brings in more stringent controls and paperwork. Exports are almost being treated like imports in the past with a host of licensing and pre-approvals to be sort" said Kaushik. |
| IMTEF urged all concerned in the tea industry and the government through re-prioritise exports to a higher level so that exports could be increased through competitiveness, value addition, brand building and the right type of promotions. |
| "Exports are not just important for the Indian tea industry but critically important both for sustaining the demand an thereby the price realisations and at the same tine making us participate in the global arena" he said. |
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