The Parliamentary Standing Committee on Commerce has recommended conducting a study to identify new export destinations for Indian teas amid present geopolitical tensions and stiff competitions.
The committee has noted the low demand for Indian tea is due to the present geopolitical factors such as Russia-Ukraine war and stiff competition from countries such as Kenya, Sri Lanka, Vietnam, Malawi and Nepal.
“The committee is of the opinion that diversification of the country’s export destinations can minimize the impact of these factors to a large extent. The committee, therefore, recommends that the department must conduct a study to identify such countries where there is a demand for Indian Tea. The committee further recommends that necessary steps must be taken to increase the competitiveness of Indian tea exports to counter the stiff competition from other countries,” the panel report stated.
The Parliamentary Standing Committee on Commerce has recommended a resolution of export stalemate with Iran at the earliest as this Middle East country has been one of the largest importers of Indian tea. “The Department must ensure that the matter may be taken at the highest level of both the Governments and the bottlenecks are removed on immediate basis,” it said.
Tea export
India’s tea export grew 9.9 per cent year-on-year to 254.67 million kgs last year from 231.69 million kgs during 2023.
The Parliamentary committee is of the view that the small tea growers should be considered on par with farmers for availing benefits under various welfare schemes for the agriculture sector like Pradhan Mantri Fasal Bima Yojana (PMFBY) and Pradhan Mantri Krishi Sinchai Yojana (PMKSY), among others.
“The Committee recommends that the Department of Commerce must take up the matter with the concerned Ministry to extend such essential schemes for small tea growers,” the panel report said.
The committee noted that despite initial engagement between the Department of Commerce and the Ministry of Agriculture and Farmers Welfare, tangible outcomes for inclusion of small tea growers in welfare schemes such as PMFBY and PMKSY were lacking. Thus, the committee has recommended that the department should actively pursue the inclusion of small tea growers in these and other relevant schemes.
“Additionally, the eligibility criteria for welfare schemes must be revised to provide small tea growers with the same benefits as other farmers,” it added.
“The Prime Minister has introduced many farmers welfare schemes for traditional agriculture farmers. Small tea growers are also agriculture farmers. For the last five years we have been demanding these welfare schemes for small tea growers too. But unfortunately we didn’t get anything. Hope the Parliamentary Standing Committee on Commerce’s recommendations will change the scenario,” said Bijoy Gopal Chakaraborty, president, Confederation of Indian Small Tea Growers Associations (Cista).
