The Parliamentary Standing Committee on Commerce has criticised the Tea Board for failing to check unscrupulous exporters importing cheap tea and re-exporting under false certificate as Tea of Indian Origin.
The panel, which laid down its 102nd report on 'Performance of the Plantation Sector - Tea and Coffee Industry' in Parliament recently, said
“The committee is gravely concerned over the unpreparedness of the department (read the ministry and Tea Board) to deal with unscrupulous exporters importing cheap tea from other countries and re-exporting it without any significant value addition under the false certificate as Tea of Indian Origin".
The report said "Apathy of the department towards such practices has seriously undermined the image as well as the value of Indian tea in the export market".
The committee had also urged the department to take urgent steps to redress the situation through a strict monitoring of quality of tea being exported.
"In this regard, the committee would therefore like the department to evolve an appropriate monitoring mechanism in respect of import of tea for exports and ensure that licenses are issued only to individuals or organisations with proven credentials," the report said.
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Tea Board held a special board meeting yesterday to discuss the suggestions and observations made by the Parliamentary panel.
Chairman of Tea Board M G V K Bhanu told PTI that the board comprising members from the industry and government accepted the suggestions and recommendations made by the Parliamentary panel.
Asked about remarks made by the panel on unscrupulous exports, Bhanu said "We are taking measures to check that. This is very important."
The panel also concluded that Special Purpose Tea Fund (SPTF) created to increase production of tea through rejuvenation and replantation had failed to yield the desired results.