Indian Tea Association has sought a special financial package from the Central Government for retaining its viability which is now under serious threat.
According to the reports – the association is seeking an increase in RoDTEP scheme from 1.7 percent to six percent to raise exports. It has also sought reintroduction of orthodox tea subsidy needed for raising exports.
The members of the association recently met the Parliamentary Standing Committee on Commerce and submitted a representation on the challenges faced by the tea industry.
Commenting on the meeting, Arijit Raha, Secretary General-Indian Tea Association said, “General issues of the industry had been discussed with a special focus on Darjeeling.”
He further added, “The production of beverage has drastically fallen in Darjeeling which is from 12 million kilograms to six million kilograms at the moment. The reasons for the drop in Darjeeling tea volumes are many, which are no place for expansion of the gardens since they are on a hilly terrain and also replantation is difficult.”
Arijit Raha also informed the Committee that the new yield after replantation generally takes a gestation period of five to seven years and the gardens will earn no revenue during that period.
He said, “It becomes a financial challenge for the industry and also Darjeeling yields are falling. Since fixed costs are the same for Darjeeling gardens and those in the plains, the cost of production is much high in the hills. Above that, prices of Darjeeling tea are falling. In the last six years from 2016 to 2021, prices have fallen 1.7 percent CAGR. The Darjeeling’s tea industry is becoming unviable. Exports also face competition from others. Thus, we sought a financial package from the Centre.”