As US tariff threat looms, India needs to revise RoDTEP incentives to support orthodox tea exports

The threat of the new US tariff regime is looming large on the Indian tea industry, the third largest global exporter of tea.

- RITWIK MUKHERJEE

The new US tariff structure is actually threatening the competitiveness of Indian teas in the US market. The Centre needs to resolve trade barriers and revise RoDTEP incentives to 5-6 per cent to support orthodox tea exports, especially to traditional markets such as Russia, Iran, and the UK, as well as emerging destinations in West Africa and the Middle East, if the risk generated out of the new US tariff regime is to be mitigated. That's what Hemant Bangur, Chairman, Indian Tea Association (ITA) feels.

Interestingly, these concerns and domestic pressures notwithstanding, tea exports grew by 10 per cent last year to 256 million kg, positioning India as the third-largest global exporter.