Darjeeling tea industry to get export zone tag

KOLKATA: After nearly a four-year wait, the Darjeeling tea industry is about to get agri-export zone (AEZ) status. Union minister of state for commerce Jairam Ramesh will ink an MoU with the West Bengal government on March 20 which will finally enable the 87 tea estates in Darjeeling to access a number of central and state government schemes to improve productivity and earn better revenues through value addition.

The Rs 212.65-crore agri-export zone in Darjeeling will be set up with assistance from Agricultural & Processed Food Products Export Development Authority (Apeda), which, in conjunction with various state governments and private agencies, have set up 60 such AEZs in 20 states across the country. West Bengal has five AEZs, which are at various stages of development for mangoes, potatoes, litchis, pineapple and vegetables.

“Though the AEZ for tea was sanctioned way back in September 2004 by the steering committee of the ministry of commerce, there were many procedural delays, including the role of various agencies involved in the process. This delayed the process,” said senior tea industry officials.

Darjeeling Tea Association chairman Sanjay Bansal said: “Unlike special economic zones, an AEZ does not comprise a physically defined area, but is an amalgamation of various schemes of the central and state governments for a particular commodity. This includes export incentive, incentives for value-addition, schemes related to irrigation among others. This will give a fresh fillip to Darjeeling tea exports.”

Incidentally, India produces 10 million kg of Darjeeling tea. Out of this, nearly 50% comprises first and second flush teas that are sold at a premium in the export markets mainly in the UK, Japan, Germany and other European nations.

The tea AEZ will entail an investment of Rs 212.65 crore, of which Rs 51.77 crore would flow from various central government agencies and Rs 4.45 crore from the state government, with the likely private sector investment placed at Rs 156.42 crore.

The AEZ proposal also estimates that the tea AEZ during the first five years would have exports worth Rs 673.75 crore and over 5,000 farmers are likely to be benefited from this zone.