The Hindu : Business : Need for strong mechanism to check export of poor teas

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Tuesday, Jul 08, 2008
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Need for strong mechanism to check export of poor teas

Special Correspondent

Policy on quality of exports on anvil
Entire supply-chain to be streamlined

KOLKATA: Peeved over complaints regarding exports of poor quality teas, the Union Minister of State for Commerce Jairam Ramesh on Monday stressed the need to put in place a stronger regulatory framework to check such occurrences. Among the measures that were being contemplated were minimum export price and stringent export inspection.

The Tea Board will send to the Union Commerce Ministry a proposal aimed at strengthening the regulatory framework needed to check such exports, Tea Board Chairman Basudeb Banerjee said. “Very shortly, a policy on the quality of tea exports will be put in place,” he said.

Mr. Ramesh said that the ministry would consider its moves on getting the final proposal. “We do no want to go back to quotas and licences but we do want stronger regulatory benchmarks and a system of penalisation which will prevent such a happening.”

The measures that were being contemplated were setting a minimum export price and setting up designated export agencies. Talking to reporters after the 105th annual general meeting of the Calcutta Tea Traders Association (CTTA), Mr. Ramesh said that at a time when new markets were being identified and a 205 million kg export target fixed for tea in 2008-09, any controversy over quality, threatens India’s tea export market.

He said that warnings had been issued to the exporters against whom complaints have been received on the grounds of quality as well as quantity from Iraq which is one of the four new markets identified for achieving the 2008-09 export target.

It may be mentioned that part of the export shortfall in 2007 was attributed to a collapse of the Iraqi market which imported only two million kg of tea in 2007 against 42 million kg in 2005.

This was attributed at first to payment problems. However later, complaints came from Iraq on quality and quantity grounds.

He stressed on the need to streamline the entire supply-chain for tea, eliminating inefficiencies.

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