New trade policy may erode competitiveness of Indian teas

Why?

  1. Recent reduction in export benefits to the sector under the MEIS (Merchandise Exports from India Scheme).
  2. Tea had been earlier included in the Vishesh Krishi and Gram Udyog Yojana (VKGUY). Under this scheme, teas (both bulk and value-added) were eligible for incentive in the form of Duty Credit Scrip.
  3. This clause may be tampered with in the new MEIS.

How big is this issue?

  1. Tea, coffee, spice & cashew also constitute part of this categorisation.
  2. Also, women constitute over 50% of the total workforce.
Plantation Agriculture – RISPC, Tea Act, etc.
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