The Tea Affiliation of India (TAI) on Sunday mentioned provide outstripping demand is a serious trigger for the issues dealing with the tea business within the nation.

It additionally spelt out varied measures to appropriate the scenario, together with the necessity to improve home consumption of the beverage.

In a submission earlier than Union Trade and Commerce Minister Piyush Goyal right here, TAI president Ajay Jalan mentioned provide outstrips the demand and it is among the root explanation for the issue.

“Now we have to control provide and create demand for tea,” he added.

Advocating for promotion of tea consumption, he pointed that per capita consumption of tea in India is as little as 830 grams per head/12 months as in comparison with 1.61 kg per head within the UK or 1.01 kg per head per 12 months in Pakistan.

“A rise of even by 100 gram per capita consumption would result in consumption of one other 131 million kg yearly,” Jalan added.

He mentioned there’s a want to advertise tea as an excellent meals/beverage highlighting the immense well being advantages of tea.

He urged the federal government to allocate funds for generic promotion of tea and entrust this promotion to an expert company.

Jalan additional mentioned one other option to regulate provide is by curbing the import of tea to India.

He mentioned out of 69.35 million kg imported in final three years, solely 23.43 million kg have been re-exported, and the remainder 36.92 million kg have been retained in India for home use.

“This imported tea creates extra stress on demand-supply equilibrium within the home market resulting in additional financial un-sustainability of tea business,” he added.

To verify import, the TAI instructed imposition of minimal import worth, anti-dumping duties, vigorous implementation of the legal guidelines of the land associated to FSSAI laws on origin, meals security, sanitary and phytosanitary laws, and so on.

The Affiliation additional requested the Union minister to invoke provisions of Tea Act and Tea Management Order 2003 to plan a scheme that might decide a remunerative worth for the business which can be charged by growers or manufactures linked with specified high quality.

The TAI additionally raised the problem of diminished export to Iran, with the quantity coming down from 53.70 million kg in 2019 to 33.37 million kg final 12 months.

“This state of affairs has arisen attributable to fee associated points and this wants decision in order that India can keep its foothold on Iranian export entrance,” it added.

The problems associated to logistics have been additionally put forth by the Affiliation, together with unavailability of containers.

It additionally known as for measures to cut back dependency on the street transport mode because it consumes most price of logistics.

Moreover making a verbal submission earlier than Goyal, the TAI president additionally handed a written observe on the problems raised by the organisation.

(Solely the headline and film of this report might have been reworked by the Enterprise Customary workers; the remainder of the content material is auto-generated from a syndicated feed.)

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