Guwahati: The Tea Association of India (TAI) has requested the Directorate General of Foreign Trade (DGFT) to review and regulate duty-free tea imports allowed under the Advance Authorisation Scheme and SEZ provisions.
In a statement on Tuesday, TAI Chairman Sandeep Singhania expressed serious concerns about how rising imports are distorting the domestic tea market, lowering prices, and damaging the global reputation of Indian tea.
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Singhania referred to official Tea Board data showing a steady increase in imports over the years. In 2019, India imported 15.85 million kilograms of tea. This rose to 23.79 million kg in 2020, 26.61 million kg in 2021, 29.84 million kg in 2022, and slightly declined to 23.65 million kg in 2023. Despite this dip, the import value remained high.
He also highlighted a sharp rise in tea imports from Kenya. According to Tea Board Kenya, Kenya exported 17.13 million kg of tea to India in 2024, a 226% jump from the 5.26 million kg in 2023. In the first three months of 2025 alone, exports from Kenya to India reached 3.9 million kg, 117% higher than the same period in 2024.
This increase came despite the Tea Board’s directive in November 2024 to reduce production to balance supply and demand.
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The industry also faced poor weather conditions, which caused a drop of about 110 million kg in production during 2024.
However, from September 2024 onwards, the sudden surge in imports led to a sharp fall in prices, about Rs 60 on average, undoing the efforts made by the Tea Board and producers to stabilise the market.
Singhania stated there is a clear link between rising imports and falling domestic prices. He warned that exporters might be importing cheap tea duty-free, blending it with Indian tea, and re-exporting it as Indian-origin, misleading buyers and harming India’s reputation. At the same time, a large share of imported tea may be entering the local market illegally, evading the 100% import duty and undercutting genuine producers with cheaper blends.
Currently, there is no clear system to track how much imported tea is re-exported and how much enters the domestic market. TAI believes this creates scope for misuse of both the Advance Authorisation Scheme and SEZ duty-free provisions.
In its letter dated June 10, 2025, TAI urged the government to stop duty-free imports under these schemes. Instead, it suggested allowing imports only after full duty payment, with duties refunded after verified export. It also recommended a stronger tracking system, similar to Sri Lanka’s model, to ensure that all imported tea meant for re-export is traceable, meets FSSAI standards, and is not diverted into the domestic market.
TAI believes these steps, if implemented, would help protect Indian tea producers, preserve the authenticity of Indian tea, and restore confidence in both domestic and international markets.