Our Bureau

The Government has in-principle agreed to provide incentives for shifting to orthodox tea production from CTC.

Mr S.N. Menon

Kolkata , Feb. 17

ALL tea consignments meant either for export or import will soon have to undergo a certification process, whereby quality will be determined and its place origin categorically displayed.

The Union Commerce Ministry is working expeditiously on this certification procedure, according to Mr S.N. Menon, Union Commerce Secretary, who was in the city on Thursday.

Apart from meeting representatives of several export promotion councils, Mr Menon also met the leaders of the Indian Tea Association.

Immediately after the meeting, he said he was trying to understand the problems of the tea industry.

According to Mr Menon, the quality of tea had become a major issue, be it imported or home-made.

In an effort to maintain the average quality and retain the brand equity of Indian teas, the certification procedure had been mooted.

Industry sources said once the certification procedure comes into effect, all sorts of teas, either for export or those imported into the country, would have to follow the PFA (Prevention of Food Adulteration) norms too.

The Tea Board would be the nodal agency of the certification exercise, Mr Menon said.

During 2004, tea imports were approximately 30 million kg and exports about 170 million kg.

Though imports had gone up sharply, exports suffered.

Meanwhile, Mr Menon confirmed that the Government had agreed in-principle to the tea industry's proposal for incentives being made available to shift from CTC to orthodox production.

"We are hoping to announce the scheme within a month," he said.

He, was, however non-committal on the industry's demand for abolition of the additional excise duty. The Union Government had imposed this additional excise duty, which is Re 1 per kg, in 2003.

The Government had reportedly collected Rs 120 crore on this account, the sum being intended for expenditure on the promotion of orthodox tea production.

Regarding the proposed Rs 4,000 crore for re-plantation and rejuvenation of tea bushes, Mr Menon said it would take time.

"We need to talk to a number of bodies such as Nabard, the Indian Banks Association and other bodies," he added.

© Copyright 2000 - 2009 The Hindu Business Line