The Union Minister of State for Commerce and Power, Jairam Ramesh, today said he had directed the Tea Board chairman to issue show-cause notices to five tea exporting companies, both public sector and private sector, like Balmer Lawrie and OP Agarwals Ambo Exports.
The minister was speaking on the sidelines of visit to a DVC plant at Mejia in Bankura district, 200 km west of Kolkata.
The problem came to light at a time when the payment problem with Indian tea exporters in Iraq had just been resolved and the middle east country had begun releasing the payment to the exporters resulting in the resumption of exports.
"I was very distressed to learn about the alarming development as the largest export market for Indian tea is Iraq. However, I must appreciate the cooperation by the Iraqi trade ministry to whom I had personally written to resolve the payment crisis but this act needs to be dealt with and hence the showcause notice," Ramesh said.
Before the crisis in 2006, India exported 40 million kg of tea annually to Iraq which had fallen drastically to 2 million kg last year, sending alarm bells in the sector.
The minister hoped with successful resolution of the crisis, the export volume would reach anywhere between 15 and 20 million kg this year.
The Egyptian tea market has also responded well to the marketing initiatives of the Tea Board and exports are likely to go up from three or four million kg to 15 million kg, this year.
