Tea exporters are facing a huge challenge, with
the new mandatory check mechanism of the Tea Board causing them undue
hardship. Exporters allege they are missing out on contracts and losing
money as test reports are routinely delayed.
India is a major exporter of tea, with shipments of 150-200
million kg annually. The quality of tea exported from the nation has
always been under the scanner and, in 2011, 200 containers of tea sent
to Iraq were rejected with test reports showing they were was unfit for
human consumption.
The Tea Board has put in place a new system from June — mandatory testing of tea meant for export to ensure that only good quality tea complying with the standards set by the Food Safety and Standards Authority of India enters the global market. The board has established two councils, which will track exports and imports and ensure that quality norms are enforced.
Exporters have to inform the board through the online mechanism of their export orders and the board will take samples for testing. “Delays in getting results from council laboratories is a major issue. Stocking the tea consignments in warehouses for a long period is costly and risky as tea prices change frequently,” Ajith MK, member of Cochin Tea Buyers Association and a buying agent told FE.
“Tea exporters are in big trouble due to the uncertainty involved in the mechanism. The software often fails and delays in getting test results put the exporters under pressure,” a tea exporter from the Nilgiris said.
Tea Board executive director R Ambalavanan said that these are initial teething problems, which would be addressed soon. “The glitches in the software have been corrected and we will soon solve other issues. We are planning new laboratories so that delays in getting test results can be avoided,” he added.
The board has exempted tea bags, herbal tea, tea sticks and flavoured tea from mandatory testing. The parliamentary committee on tea reports that India is perceived as a poor quality tea supplier and is fast losing prominence in global trade. The export share of Indian tea has declined significantly over the years, from 48% in 1950 to 12% in 2011. India is now fourth after Sri Lanka, Kenya and China, with a share of around 10- 12 %.
The Tea Board has put in place a new system from June — mandatory testing of tea meant for export to ensure that only good quality tea complying with the standards set by the Food Safety and Standards Authority of India enters the global market. The board has established two councils, which will track exports and imports and ensure that quality norms are enforced.
Exporters have to inform the board through the online mechanism of their export orders and the board will take samples for testing. “Delays in getting results from council laboratories is a major issue. Stocking the tea consignments in warehouses for a long period is costly and risky as tea prices change frequently,” Ajith MK, member of Cochin Tea Buyers Association and a buying agent told FE.
“Tea exporters are in big trouble due to the uncertainty involved in the mechanism. The software often fails and delays in getting test results put the exporters under pressure,” a tea exporter from the Nilgiris said.
Tea Board executive director R Ambalavanan said that these are initial teething problems, which would be addressed soon. “The glitches in the software have been corrected and we will soon solve other issues. We are planning new laboratories so that delays in getting test results can be avoided,” he added.
The board has exempted tea bags, herbal tea, tea sticks and flavoured tea from mandatory testing. The parliamentary committee on tea reports that India is perceived as a poor quality tea supplier and is fast losing prominence in global trade. The export share of Indian tea has declined significantly over the years, from 48% in 1950 to 12% in 2011. India is now fourth after Sri Lanka, Kenya and China, with a share of around 10- 12 %.
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