Crisis Brewing: Low-Quality Tea Imports Undermine India's Tea Industry
The influx of low-quality duty-free tea imports into India is jeopardizing the domestic tea market. Despite being intended for re-export, these imports are leaking into local markets, driving down prices and impacting growers. Industry leaders are calling for protective measures, including import duties, to safeguard the sector.
- Country:
- India
India's tea industry is facing a significant challenge due to an increase in low-quality, duty-free tea imports, which are being diverted from their intended re-export markets into the domestic sphere. This influx is contributing to price declines, creating distress among local growers.
Industry leaders, including Tea Association of India President Sandeep Singhania, have highlighted that these imports are undermining market stability. They are calling for stringent measures such as the imposition of a 100 percent import duty and a minimum import price to prevent further disruptions.
Despite rising domestic tea production, cheap imports, especially from countries like Kenya and Nepal, continue to flood the market, exacerbating the situation. Calls for regulatory intervention persist, as the sector struggles with falling prices and deteriorating market sentiments.
(With inputs from agencies.)
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