Darjeeling’s tea crisis brews; ITA seeks Rs 113 cr

Kolkata: The Indian Tea Association (ITA) is demanding financial, regulatory and structural measures from the West Bengal government to revive the tea industry in Darjeeling, Dooars and Terai. The Association highlighted the industry's struggles in two White Papers focused on the Darjeeling Tea Industry and the Dooars & Terai Tea Industry. These papers emphasize the urgent need for government intervention to protect the region's tea industry and its Geographical Indication (GI) status.

Key concerns include a sharp decline in tea production, aging plantations, soaring costs, and intense market pressures. The White Papers propose a comprehensive package, including an annual financial support of around Rs 113 crore for the Darjeeling tea industry. This support would cover various aspects like orthodox tea production, working-capital interest, transportation, mechanisation, social security, plantation rejuvenation, and factory modernisation.

ITA also seeks seasonal industry status for the Darjeeling tea, aimed at easing the financial strain on plantations and boosting their capacity to invest in ageing tea areas and production infrastructure. Additionally, they recommend labour and regulatory reforms, market access improvements, diversification, and heightened integration of tea plantations with government welfare and development initiatives.

The Association has also proposed a Minimum Sustainable Price for Made Tea and a Minimum Import Price for orthodox teas to safeguard the interests of domestic producers. They further advocate for GST rationalisation for ready-to-drink tea products and enhanced RoDTEP support for tea exports to bolster the global competitiveness of Indian tea.

The proposals were presented to the West Bengal government through a series of meetings with key officials, including Minister Tapas Roy, Finance Minister Swapan Dasgupta, and Advisor Subrata Gupta. ITA's aim is dual – to bolster tea producers and ensure the sustained employment and livelihoods of rural communities dependent on the industry.