Tea industry seeks higher RoDTEP rates

• The tea industry has sought higher rates under the RoDTEP scheme to make exports competitive in overseas markets.

Highlights:

• Leading industry body Indian Tea Association (ITA), in its pre-budget memorandum, said the present Remission of Duties and Taxes on Exported Products (RoDTEP) rate for bulk tea is 1.7% subject to a cap of ₹6.70 per kilogram.
• ITA urged the government to increase the reward base rate under RoDTEP for black tea in bulk to remain competitive.
• The RoDTEP scheme ensures exporters receive refunds on embedded duties that were previously non-recoverable.
• Another industry body Tea Association of India (TAI), in its pre-budget proposal sought an anti-dumping duty on imports of Nepal tea. TAI said this measure would prevent the dumping of cheap and duty-free tea from Nepal and boost exports of genuine Darjeeling tea.

Prelims Takeaway:

• RoDTEP
• ITA