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Regular-article-logo Thursday, 18 July 2024

Tea seeks export sops

Shares of exports to total production of tea has fallen from 60% in 1960 to 19% now

TT Bureau Calcutta Published 19.12.19, 06:41 PM
The Centre gave Rs 3 a kg subsidy in 2005 to encourage orthodox tea. Goenka said there is a need to raise it to at least Rs 10-12 a kg given the difference in the cost of producing orthodox and CTC tea is about Rs 24 a kg.

The Centre gave Rs 3 a kg subsidy in 2005 to encourage orthodox tea. Goenka said there is a need to raise it to at least Rs 10-12 a kg given the difference in the cost of producing orthodox and CTC tea is about Rs 24 a kg. Telegraph file picture

The tea industry wants to be inducted into the new export incentive scheme rolled out by the Centre to enhance volumes, especially of the orthodox variety.

Vivek Goenka, chairman of the Indian Tea Association, the body of registered tea growers, said tea should be included in the Rebate on States & Central Taxes & Levies scheme.

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He was speaking at the 136th annual general meeting of the association.

RoSCTL is a new WTO- friendly export incentive scheme being rolled out, replacing MEIS (Merchandise Export from India Scheme), the existing scheme.

Shares of exports to total production of tea has fallen from 60 per cent in 1960 to 19 per cent now.

This is because the orthodox variety of tea, which accounts for 40 per cent of global tea export, is still a small 9 per cent of India’s total production.

The Centre gave Rs 3 a kg subsidy in 2005 to encourage orthodox tea. Goenka said there is a need to raise it to at least Rs 10-12 a kg given the difference in the cost of producing orthodox and CTC tea is about Rs 24 a kg.

Speaking after Goenka, Tea Board India chairman Prabhat Bezbarua said support of Rs 10 a kg should come from the government.

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