The Tea Board of India has implemented new rules and emphasized current ones that intend to benefit the domestic tea industry and consumers.
On 1 January 2025, the Tea Board of India’s Coonoor office released a circular drawing the attention of every tea warehouse, blending and packaging unit, exporter, buyer, and distributor in the Southern region of India to a few new rules.
Firstly, it reiterates that per Chapter 2.10.1 of Food Safety and Standards (Food Products Standards and Food Additives) Regulations, 2011, only natural flavors and natural flavoring substances obtained exclusively by physical processes from plant-origin materials are permitted to be added to tea. The rule forbids the usage of natural-identical flavoring substances and artificial flavoring substances in tea. The rule also requires flavored tea manufacturers to register themselves with the Tea Board of India before marketing their products.
Secondly, the circular says that any distributor who distributes imported tea within India or exports it must do so with at least 50% value addition. Additionally, imported teas intended for export must be shipped within six months from the import date into India. Also, imported teas should be blended with GI-tagged teas. All tea exports require a valid exporter license issued by the Tea Board of India.
Thirdly, the circular states that for units destined for export, the samples would be drawn from both domestic and imported teas for testing.
Recently, India has seen a growing popularity of flavored teas across different segments like tea bags, loose teas, and iced teas. However, tea producers face increasing challenges from climate change, labor shortages, etc., and cheaper tea imports that compete with domestically produced tea that often can’t compete on the prices. To understand more about how the notifications in the circular would impact the tea industry in India, STiR spoke to Dona Aideau, a fourth-generation tea producer, tea blender, certified tea taster, and tea educator. Dona is based in Pondicherry and travels across India and Europe for tea pairings and education. She strives to promote awareness about the rich Indian terroir and the agricultural heritage of homegrown Indian teas.
“It is great to see the emphasis on maintaining high standards for tea and imported tea products,” explains Aideau. “Ensuring quality and safety in food and beverage production benefits everyone, including consumers and industry stakeholders. I believe we all share a responsibility to promote health and sustainable food practices.”
“Indian tea consumption is evolving and greater transparency about ingredients and value composition will hopefully encourage consumers to critically evaluate the claims made in the marketing of certain products,” says Aideau. “This added clarity can aid in the identification of products and provide valuable knowledge for consumers. This shift in awareness can lead to a more informed and discerning tea culture, benefiting both producers and consumers in the long term. The cost of natural additives may increase the price of the final products, but flavored teas and tisanes have never represented the most premium tea leaves, despite often being marketed as such.”
Currently, India imposes a 100% basic customs duty plus a 10% social welfare surcharge on all tea imports, flavored and unflavored. However, a Free-Trade Agreement between India and Nepal allows traders, blenders, packers, and producers to import tea from Nepal without paying any duty. There is also a push to route the Nepal teas imported into India to be routed through an auction sale under the aegis of the Tea Board.
Another major exporter of teas to India is Kenya. Between January and October 2024, Kenya exported 13.7 million kilograms of tea to India, while in 2023, these imports were to the tune of 3.53 million kg during the same period. Tea production in India up to November 2024 was down by over 50 million kg. This makes the imports from Kenya alarming while creating an oversupply in India, leading to a depression in tea prices. Cheap teas from Iran and Vietnam are also being imported.
“We need protective measures against underpriced foreign products,” adds Aideau. “Implementing a time limit for consumption will force importers to maintain appropriate stock volumes and ensure traceability within the specified time frame. This may impact their profit margins and the volume of stock they can manage. However, this adjustment would ultimately benefit consumers and enhance the global perception and value of the Indian tea industry.”
Overall, the rules iterated by the circular are intended to benefit the domestic tea industry as well as the consumers. There is a need for greater awareness and education in the market as well as innovation to make tea production a more sustainable venture while offering the best teas to consumers.