Tea and import duty

Banglore bureau reported as it is essential that tea like other agriculture commodities should be given adequate tariff protection by increasing the basic import duty to at least 35 per cent.

The recently announced Exim Policy retains an import duty of 15 per cent on tea as compared to the peak rate of 35 per cent, and that tea continues to be on the restricted list for one more year.

It can be imported from the Saarc countries at a normal basic rate of 15 per cent and from Sri Lanka at 7.5 per cent under the Indo-Sri Lanka Bilateral pact.

Noting that Russia was to import 100m kg of tea from India every year under the protocol, alternatively, 50 per cent of the amount of tea allocated for tea be for consumer packs.

As average price realizations of Indian tea had slumped from Rs 69 a kg in ’98 to Rs 57 a kg in ’99 and Rs 48 a kg at present, as against a production cost of Rs 60 a kg, soughting of the abolition of the excise duty on the bulk tea was doneTea and import duty


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