2 weeks ago

India-Nepal tea trade disparity flagged, MPs seek reciprocity

India-Nepal tea trade disparity flagged, MPs seek reciprocity
MPs flag disparity in India-Nepal tea trade, seek reciprocity - Telegraph India · telegraphindia.com

A special group of important people in India, called a committee, watches over how things like tea are bought and sold between countries.

The committee noticed something unfair: tea from Nepal can be sold in India without paying any extra money, but tea from India must pay a very high tax when it goes to Nepal.

The committee thinks both countries should treat each other's tea the same way.

India is famous for a special tea called Darjeeling Tea, which has a special label proving it comes from just one place.

The committee is worried that cheaper tea from Nepal is being mixed with Darjeeling Tea and sold as the real thing, which hurts Darjeeling Tea's good name.

The people in charge of tea say they already have rules to stop this and that only a small amount of tea comes from Nepal.

The committee does not think these rules are enough and wants the government to do more.

They also found that the tea office, called the Tea Board, does not have enough workers to do its job well.

The committee wants the government to fill those empty jobs and help tea gardens that have closed down.

This is all about making sure the tea business is fair for everyone involved.

Key facts

Tariff asymmetry
Nepal: 0% duty into India; India: 40% tariff into Nepal
Report
198th report of the standing committee on commerce, presented August 6
Committee composition
31 members (21 Lok Sabha, 10 Rajya Sabha), chaired by Dola Sen
Tea imports (Apr-Feb 2025-26)
37.07 million kg, equivalent to 2.87% of domestic production
Import decline
21.84% year-on-year
Tea Board vacancies
455 of 756 sanctioned posts vacant (301 filled)
GI protection measure
November 11, 2021 notification barring blending of imported tea with Darjeeling Tea
Competing tea producers cited
Sri Lanka and Indonesia

Sources

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