According to an official, the draft tea invoice goals to eradicate outdated or redundant provisions, eradicate licences, enhance ease of doing enterprise, and enhance tea exports. The commerce ministry has recommended repealing the Tea Act of 1953, which is 68 years outdated, and changing it with the Tea (Promotion and Development) Bill, 2022.
“The objective of the new bill is to eliminate archaic/redundant elements that have lost their relevance and make it industry friendly by eliminating licences and acting as a facilitator,” the official defined.
It would additionally meet the wants of the sector and the current financial scenario within the nation.
The invoice recognises small farmers and locations a precedence on their coaching, adoption of recent applied sciences, capability constructing, and worth addition; it protects the pursuits of tea backyard employees; and it encourages ease of doing enterprise, in line with the official.
The tea business is now ruled by 4 management orders issued by the central authorities.
“The regulatory system contemplated by those directives has outlived its usefulness,” the supply stated, including that the proposed invoice will assist by selling exports by emphasising on high quality and preserving mental property rights of Indian-origin tea.
It additionally discusses decriminalising minor offences and limiting penalties for non-compliance to civil penalties.
Furthermore, the invoice establishes the proportionality doctrine, which requires the Tea Board’s actions to be in line with the invoice’s targets with a purpose to forestall the Board from performing unfairly or unilaterally.
Permission to plant tea, export allocation, export quotas and licences, imposition of a cess on tea produced in India, and elimination of planted tea with out permission are all archaic facets of the prevailing Act.
The central authorities has the appropriate to handle the pricing and distribution of tea underneath an current provision of the Act, together with setting the minimal and most worth.
Currently, the Centre has the authority to decide on anyone to take over administration management of any backyard that has been closed for greater than three months with out investigation.
“These are reactionary measures that have never worked and have instead functioned as a deterrent to new investment,” the official continued.
Export stagnation, a demand-supply mismatch that results in dropping pricing, diminishing productiveness, an absence of worth addition, and an absence of product variety are among the many sector’s main points.
Darjeeling, Assam, and Nilgiri teas are produced in India and are among the many greatest on this planet.
With a 20% market share, India is the world’s second largest tea producer. India produced 1,258 million kgs in 2020, in comparison with 6,269 million kgs worldwide. India is the world’s fourth largest tea exporter, with 210 million kg equipped in 2020. The prime three exporters are Kenya, China, and Sri Lanka.