Former Rajya Sabha MP Shanta Chettri has demanded ‘safeguard measures’ for the Darjeeling tea industry by invoking the Indo-Nepal Treaty of Trade to protect the domestic sector from increasing tea imports from the neighbouring country.

In a letter written to the Union commerce minister Piyush Goyal in the runup to the Union Budget, Chhetri, who has been vocal to highlight the plights of the Darjeeling tea industry, claimed the present situation warrants invoking Article IX of the Treaty as influx of Nepal tea is causing serious injury to domestic industry.

She argued the ‘safeguard measure’ should include imposing pari passu 40 per cent customs duty on Nepal teas and only be allowed to be imported in one kilo consumer packs so that they are not sold as premium Darjeeling tea.

Alternatively, she wrote, Nepal teas must be routed through auction sale held under the aegis of the Tea Board with all checks and measures, after paying 40 per cent duty.

Chhetri’s letter came days after The Telegraph reported that the government of India, through the aegis of the Tea Board, is seeking feedback from industry on mandatory auction of Nepal teas in the country to keep a better check on the import.

According to the former MP, who hails from Kurseong, the provision for safeguard measures is present in the Protocol to the Treaty, which was renewed for seven more years from 2023.

“In the event of imports under the Treaty, in such a manner or in such quantities as to cause or threaten to cause serious injury to the domestic industry relating to the article, an investigation for application of safeguard measures may be initiated,” she mentioned in the Protocol in reference to Article IX.

According to a white paper published by the Indian Tea Association (ITA), 13.66 million kg tea was imported from Nepal in 2023. It is estimated that at least 5-6 million kg would be of the orthodox variety which competes with Darjeeling. Concerns have been raised about the quality of the tea being imported.

Nepal imposed 40 per cent duty on tea import even as India allows duty free entry as per treaty. A section of the tea industry threatened to move court if the Centre does to act.

“Two lakh employees and employers will be constrained to move court in the event the Centre refuses to protect the Darjeeling tea industry by invoking safeguard measures under the Indo-Nepal treaty against indiscriminate influx of substandard Nepal teas, which are deceptively sold as premium Darjeeling to the domestic consumers,” said Sanjay Choudhary, owner of Ringtong tea garden from Darjeeling.