Sale of Darjeeling Tea affected by illegal influx of Nepal Tea

The prices of Darjeeling Tea that recently received GI tag has fell by 20% to 25% due to unchecked flow of Nepal Tea into the country.

Highlights

Nepal Tea also known as Himalayan Tea is very similar to that of Darjeeling Tea in aroma, flavor and taste. But Nepal Tea is 50% cheaper than that of Darjeeling Tea. This is being misused by many traders. Nepal tea can be imported by anyone freely under Free Trade Agreement between India and Nepal.

Around 16 million kg of Nepal Tea is entering India every year.

Issue

Most of the Nepal Tea is uncertified. On the other hand, 70% of 87 estates growing Darjeeling Tea are certified organic. The annual export of Darjeeling Tea was Rs 600 crores. Experts believe that it would have touched Rs 700 crores if Nepal Tea hadn’t played its role.

GI Tag

The Darjeeling Tea and White Tea received GI Tag recently in November 2019. The GI tag is provided to fetch an identity for the product international market and increase its exports. When such products develop fake, their exports get affected greatly.

India enacted Geographical Indications of Goods (Registration and Protection) Act, 1999 under Article 22 of World Trade Organization.

Month: Current Affairs - January, 2020