The Indian Tea Association (ITA) secretary general, Arijit Raha, has urged the deputy chairman of the Tea Board of India to reconsider the proposal for a mandatory auction system for teas imported from Nepal. In a letter dated 14 January, Mr Raha outlined the ITA’s concerns, emphasising the need for protective measures for the Darjeeling tea industry instead.
Mr Raha highlighted that the increasing import of Nepalese tea has severely impacted the viability of Darjeeling tea. While most Nepalese tea is exported to India under the Revised Free Trade Treaty of 2009, which exempts it from basic customs duty, India-made tea exported to Nepal faces a 40 per cent import duty. This disparity, he argued, puts the Indian tea sector—especially Darjeeling tea producers—at a disadvantage.
Addressing the proposal for a mandatory auction system, the ITA stated that its members do not support the move. Mr Raha pointed out that the Indian tea market is already struggling with oversupply, and unrestricted access for Nepalese tea would further disrupt demand and supply. Making Nepalese tea available through the auction platform would provide easy access to buyers, leading to market volatility and unpredictable pricing, ultimately destabilizing an already fragile Darjeeling tea industry.
Traceability of imported tea was another major concern raised. While auctions might improve traceability, Mr Raha argued that the resulting market instability would outweigh this benefit. Additionally, he cautioned that allowing Nepalese tea into mandatory auctions could set a precedent for other tea-producing countries, further worsening the oversupply situation in India. He also noted that the Tea Act does not explicitly allow auctions of teas originating outside India.
To safeguard the Darjeeling tea industry, Mr Raha proposed stricter import regulations, including a Minimum Import Price and comprehensive pesticide residue testing for Nepalese tea. He cited provisions from the Food Safety and Standards Act, 2006, and the Food Safety and Standards (Licensing and Registration of Food Businesses) Regulations, 2011, which mandate rigorous testing of imported food products to ensure safety. He urged authorities to implement similar measures to protect Indian tea, as other tea-producing nations have done to safeguard their domestic industries.
This table clearly shows that Nepal’s tea imports consistently exceed Darjeeling’s tea production in most years.