Guwahati: The Tea Association of India (TAI) has raised serious concerns over a massive discrepancy in the figures of tea imports into India and the data published by the Tea Board of India, signalling possible large-scale violations of existing import-export regulations.
According to TAI, the Tea (Distribution & Export) Control Order, 2005, mandates that any tea exported under the label of “Indian Tea” or a specific Indian tea-growing region must be 100% Indian in origin.
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However, TAI president Sandeep Singhania has alleged that imported tea is being blended and falsely branded as Indian tea, which is a clear violation of this regulation.
Mismatched Import and export data
Singhania highlighted that despite the Tea Board of India’s directives requiring all importers and exporters to declare their transactions on the Tea Council Portal, there is up to a tenfold mismatch between the figures reported by Indian tea importers and the export data from key origins such as Kenya, Nepal, and Vietnam.
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“The primary reason for this inconsistency is that importers are not declaring their tea imports on the Tea Council Portal,” Singhania stated. He called on Customs authorities and the Directorate General of Foreign Trade (DGFT) to release timely and accurate tea import figures based on actual data to curb this malpractice.
Violation of re-export regulations
The TAI detailed how duty-free imported tea is being illegally re-exported as “Indian Tea”, harming India’s reputation and adversely affecting genuine tea exporters. Most of these imported teas are of cheap quality from countries like Iran, Vietnam, and Africa, and their rebranding as Indian tea is not only misleading but also depresses Indian tea prices, leading to financial distress within the industry.
Moreover, a significant portion of these cheap duty-free teas is being diverted to the domestic market and sold as Indian produce. This unethical practice further cripples Indian tea prices, creating an uneven playing field for local tea producers who are subject to 100% import duty on teas meant for domestic sale.
Call for stringent regulatory measures
To curb these violations, TAI has recommended that all importers should be required to furnish GST returns, proof of tea imports declared in the Tea Council Portal, and export documents for the past three years.
“A 100% import duty with penalties should be imposed on all cases where imported tea has been fraudulently re-exported as Indian tea,” TAI said.
TAI also recommended restrictions on Duty-Free Imports and said the government should reconsider whether duty-free tea imports for re-export should be allowed or restricted to consumer packs only to prevent bulk re-export fraud.
It has called for greater financial and legislative authority for the Tea Board of India to crack down on fraudulent practices and enforce strict compliance with national laws.
TAI recommended that India adopt a testing model similar to Sri Lanka’s for all teas imported for re-export and consider banning duty-free imports for bulk re-export.
“The North Indian Tea Council should be activated and empowered to assist in monitoring the quality of imported and exported teas,” Tai said.
A threat to the Indian tea economy
The TAI has warned that if these measures are not implemented immediately, the Indian tea industry faces disastrous consequences, including unsustainable price reductions, financial instability, and widespread economic hardship.
“The viability of tea producers is under acute stress due to the absence of fair price discovery for Indian teas. If the re-export of imported teas as ‘Indian Tea’ is not abolished, it will break the financial backbone of the already struggling industry,” Singhania cautioned.
Reiterating the vision of “Atmanirbhar Bharat”, TAI urged the government to take swift action to protect India’s tea industry from unethical practices that threaten its global reputation and long-term sustainability.