The Hindu Business Line : Certificate of origin issue haunts tea exports

FIVE years ago, Libya banned import of Indian tea. The reason was that a Kolkata-based exporter had supplied "sub-standard" tea. Now that assurances have been made to ensure quality of tea shipped from the country, authorities in Tripoli have lifted the ban. But the danger of export of such "sub-standard" teas still exists.

"The danger exists since the process of issuing the certificate of origin for tea consignments from the country has not been regularised," said industry sources.

"In 1998-99 when the sub-standard tea was shipped to Libya, the exporter got the certificate of origin from the Jodhpur Chamber of Commerce. And the consignment was actually imported from Indonesia and then, re-exported. At that point of time, we had export orders to the tune of 15 million kg," the sources said.

Currently, any chamber of commerce can give the certificate of origin for tea meant for exports.

According to Mr Ullas Menon, Secretary-General, United Planters' Association of Southern India (Upasi), such an arrangement existed even for coffee export before the Government, on the initiative of the Coffee Board, stepped in to direct that the board would provide all certificates of origin.

Mr A.K. Bhandari, President, Upasi, said the association had taken up the issue with the Commerce Ministry.

"Currently, anyone can go to any chambers of commerce in the country and get a certificate of origin. The issue here is that most of the chambers may not be conversant with all facts of tea," Mr Menon said.

According to industry sources, some exporters get the certificate even without producing samples.

On its part, Upasi has got in touch with chambers of commerce in the South.

"We have requested the chambers to ensure the quality before giving the certificate of origin. We have asked them to ask for samples and evaluate them technically," Mr Menon said.

Industry sources said the Government should make the Tea Board or associations such as Upasi the authority for issue the certificates of origin.

"Our exports have begun to look up again. With demand coming from new destinations, the Government should tighten quality control," they said.

Tea exports during January-August are up 15.3 million kg at 107.7 mkg compared to the same period a year ago.

Exports to Iraq, UK, UAE, Poland and Afghanistan have all increased, while Kenya, India's main competitor, has bought over eight million kg, mainly from the South, for re-exports as blend to Egypt.

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Certificate of origin issue haunts tea exports