GOLAGHAT: Assam's tea sector representatives are worried concerning the prospect of reduction of import responsibility on tea from different international locations underneath the ASEAN Free Trade Agreement (AFTA) signed in 2008-Nine.
Tea Board chairman Prabhat Bezboruah mentioned the federal government is obligated underneath AFTA to reduce agri-commodity import price lists to 50%. "However, the government (Centre) has referred the matter to the Tea Board for our comments and inputs. We have sent our reply objecting to the proposal, emphasizing on the potential risks to our industry," Bezboruah mentioned.
An afternoon ahead of the annual common meeting of North Eastern Tea Association (NETA) right here on Saturday, individuals have expressed worry that after the import responsibility is lowered, the Indian marketplace will be flooded with reasonable tea from different international locations, particularly from southeast Asia.
NETA adviser Bidyananda Barkakoty mentioned if the import responsibility is lowered, India can not compete with different tea-producing international locations primarily on account of its low land and labour productiveness. "Our input costs are very high. We do not have control over inputs costs on coal, natural gas, electricity, fertilizers and other inputs required for tea industry," he added. "Under the AFTA agreement, [the import duty of] 110% is to be brought down to 50%. If this happens, India will not be able to compete with the cheap tea flooding our market. We will appeal to the Tea Board and the union commerce ministry to reconsider this decision," NETA chairman Manoj Jallan mentioned.
Tea Board chairman Prabhat Bezboruah mentioned the federal government is obligated underneath AFTA to reduce agri-commodity import price lists to 50%. "However, the government (Centre) has referred the matter to the Tea Board for our comments and inputs. We have sent our reply objecting to the proposal, emphasizing on the potential risks to our industry," Bezboruah mentioned.
An afternoon ahead of the annual common meeting of North Eastern Tea Association (NETA) right here on Saturday, individuals have expressed worry that after the import responsibility is lowered, the Indian marketplace will be flooded with reasonable tea from different international locations, particularly from southeast Asia.
NETA adviser Bidyananda Barkakoty mentioned if the import responsibility is lowered, India can not compete with different tea-producing international locations primarily on account of its low land and labour productiveness. "Our input costs are very high. We do not have control over inputs costs on coal, natural gas, electricity, fertilizers and other inputs required for tea industry," he added. "Under the AFTA agreement, [the import duty of] 110% is to be brought down to 50%. If this happens, India will not be able to compete with the cheap tea flooding our market. We will appeal to the Tea Board and the union commerce ministry to reconsider this decision," NETA chairman Manoj Jallan mentioned.
Tea cos fear loss in biz if import duty is reduced
![Tea cos fear loss in biz if import duty is reduced]()
Reviewed by Kailash
on
November 18, 2017
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