Tea industry has something to cheer

The reduction in excise duty on Rs 2 per kg to Rs 1 per kg and the increase in customs duty on tea to 100% will benefit the tea industry, which is currently in dire state.

Though short of the industry's expectation of complete waiver of excise duty, the industry is likely to benefit by Rs 86 cr.

Leading companies engaged in Tea, including Tata Tea, HLL, Eveready Industries are likely to benefit from the reduction in excise duty on tea.

The impact of increase in import duty on tea to 100% is currently marginal. This is because, most of the tea that is imported is getting re-exported. Nevertheless, this measure will help arrest the possibility of surge in cheap quality tea imports.

On the whole, though short of expectations, the budget provides some respite to the industry, which is groaning under sharp fall in prices, domestic consumption and exports.

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