The Union commerce ministry has directed the Tea Board to enquire into complaints that Tata Consumer Products (formerly Tata Tea) violated regulations by blending Nepal tea in its packet teas without adequate disclosures.

The Board has been asked to take action if these allegations are proven.

The ministry, headed by Piyush Goyal, has written to the deputy chairman of Tea Board on November 3, in response to a number of letters that Trinamul Congress Rajya Sabha MP Shanta Chhetri sent to Prime Minister Modi and Goyal highlighting the plight of Darjeeling tea industry in the wake of unchecked tea imports from Nepal.

Chhetri’s letters on August 28 and September 22 drew attention to the fact that TCPL was blending Nepal teas in their popular brand, Tata Gold, without mentioning the country of origin, the name and address of the importer, and the premises where the tea was packed. The three-time MLA from Kurseong claimed that a specific complaint had been made to the Tea Board by Ringtong tea estate owner Sanjay Choudhury but no action had been taken.

“The Board is also requested to take necessary action as per rules to protect the Darjeeling GI (geographical indication) and also enquire into the complaint of violation on part of TCPL as mentioned by Smt Shanta Chhetri, Hon’ble MP, in her letter and necessary action be taken as per rules under intimation to this department,” said the letter from the ministry, which has been reviewed by this newspaper.

The Board was also asked to constitute a committee of senior officials to examine the issue in detail, conduct site visits, examine the records of the importers and trace their use. A five-member committee was later constituted as per the directive of the ministry.

It could not immediately be ascertained whether the Board has initiated a probe into the allegations against TCPL. The company said it has “not received any intimation of any enquiry from the Tea Board”.

However, the Tea Board has initiated a raft of measures designed to check import of sub-standard teas into India after receiving the ministry’s directive earlier this month.

Apart from issuing circulars, the Board has started to crack the whip to ensure compliance by picking up samples of imported tea and sending them to multiple labs for testing.

Tea Board actions

On November 11, the board issued two circulars to check imports of inferior quality of tea. Under the prevailing law, an importer must obtain a licence and a clearance certificate from the Tea Council to import tea. All entities importing tea for the purpose of distribution are required to inform the place of storage within 24 hours to the Board which will collect random samples to test quality.

Moreover, the origin of the tea must be mentioned in the sales invoice of the import.

While the Board reiterated this position, which falls under the provisions of Tea (Distribution & Export) Control Order, 2005, it has tacked on a new directive which said “the label should clearly indicate on the packaging that the contents of the blended tea are imported giving the source of the origin of the imported tea irrespective of whether the imported tea has been brought directly by the seller or through (an) intermediary from the date of issuance of this notification. Failure to comply with this direction shall invite action as deemed fit.”

Prabhat Bezboruah, chairman of the Tea Board, said there was no law that prevented import of tea but cautioned that quality should be maintained.

“It should not spoil the name of Indian tea,” he said.

He argued no individual entity should be singled out and the industry must collectively deal with the surge in imports rise of mostly substandard teas. He did not confirm whether the Board had ordered an enquiry into the allegations against TCPL.

Tata response

TCPL had earlier maintained that it did not directly import the tea from Nepal. “All tea procurement for our India brands is only from teas traded in the India domestic markets which meet FSSAI regulations. This could include a small amount of teas produced in Nepal and available in the local market as per government regulations. This tea is available to, and purchased by, a cross section of buyers and packers in the country, including Tata Consumer Products,” the company had told this newspaper in September.

On Saturday, the company said it was aware of the recent notifications issued by the Tea Board. “We are analysing the impact of the same on our business and evaluating various options available. As previously stated, we remain committed to supporting and promoting the Indian tea industry, through our significant purchases of Darjeeling and other Indian teas and through our speciality blends,” a TCPL spokesperson said.

Industry sources suggested packs sold in India must disclose the country of origin on the label.

Ministry’s move

The day it wrote to the Board asking it to act on Chhetri’s complaint, the ministry wrote to Central Board of Indirect Tax & Customs, Department for

Promotion of Industry and Internal Trade and Food Safety & Standards Authority of India (FSSAI) asking them to take action to protect Darjeeling tea from import of Nepal tea.

During the three years up to March 31, 2020, India imported 60.35 million kg out of which only 23.43 million kg was re-exported. This underscores the fact that 36.92 million kg was distributed in the country, adding to the glut of tea in the country.

“Such imported tea, the majority of which is from Nepal, is sold in India as if produced in India,” the ministry wrote to the FSSAI. It requested the food regulator to issue import clearances for import of tea into India through a single land custom station and also insist on the production of sanitary and phytosanitary certificates. Import from Nepal surged in 2017 when the GJM forced a strike in the hills, destroying the first flush completely and second flush partly in Darjeeling.

The customs department was asked to ensure strict and mandatory compliance with FSSAI regulations and insist on valid certificates issued by the Tea Board and compliance certificate issued by Tea Council before teas from Nepal were permitted to enter the country.

Industry sources said at least two consignments of teas have been held up at the border following the directive from Goyal’s ministry.

Tea from Nepal comes close to Darjeeling tea, which arguably produces the finest black tea in the world in terms of flavour and aroma. Darjeeling tea is protected by the GI tag which means tea from other origins cannot be passed off as the real thing.

However, packers are said to be blending Nepal teas in an effort to lower costs. Some European importers also mix Nepal tea and characterise them as Himalayan blends.

TCPL is one of the largest buyers of Darjeeling tea, procuring close to 1 million kg a year and thereby supports the 87 gardens there.