Production of Tea





Production of Tea 
            The estimated tea production state-wise and quantum-wise for the financial year 2014-15 is as under:


State
Quantity (M.kgs.)
Assam
585.36
West Bengal
324.07
Tamil Nadu
166.38
Kerala
66.90
Karnataka
6.73
Others
24.56
Total
1174.00

                                   
            India produces some of the world’s finest teas like Darjeeling Tea in West Bengal, Assam Tea in Assam, Nilgiris Tea in Tamil Nadu and Kangra Tea in Himachal Pradesh which are famous for their delicate flavor, strength and brightness.  

            Indian teas are exported worldwide and earn valuable foreign currency. Details of tea exports and the foreign currency earned during 2011-12 to 2014-15 (April-February) are as under:
Year
Qty. (M.Kgs)
Value in Rs.Crs.
Value in
Mill US$
2011-12
214.35
3304.82
690.14
2012-13
216.23
4005.93
735.90
2013-14
225.76
4509.09
746.46
2014-15
(Apr-Feb)*
180.05
3485.71
571.23
                                               

            The single-origin teas grown in specific states and regions of India have unique characteristics and have large potential to contribute to the generation of foreign exchange from sale of such teas.  State governments of tea growing states which are represented on the Tea Board are regularly consulted while finalizing the marketing strategy for tea.  Producers and growers of tea in the tea growing states also receive substantial financial and technical assistance from the Tea Board as part of the Tea Development and Promotion Scheme for producing and marketing tea.  

            Tea Board regularly accepts proposals and applications from the growers and producers of tea in all states and assists them under the Tea Development and Promotion Scheme for undertaking activities  such as rejuvenation, pruning, infilling,  uprooting and replanting  of old tea areas, extension planting, quality upgradation and product diversification, value-addition, quality certification, changing of the product mix, including Orthodox Tea Production.

This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.
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Annual Production of Spices 
The annual production of spices in the country is around 6 million tones, out of which about 12 to 14% is exported while the rest is available for domestic consumption. Details of production, export and import of spices during 2013-14 are given below:


Quantity (tonnes)
1.
Production
59,35,043
2.
Export
8,17,250
3.
Import
1,30,010

India imports selected spices like Clove, Cassia, Cinnamon, Poppy Seed, Star anise to meet domestic consumption as well as fulfilling demand of industry for value addition and re-export. Government implements several programmes for increasing production and availability of spices such as Cardamom through the Spices Board and other spices through the State Horticulture Missions under the Mission for Integrated Development of Horticulture (MIDH). The mission programmes are aimed at increasing production, productivity and quality of the produce to meet growing demand in the domestic as well as export market.
While the requirement of domestic market are met by programmes aimed at increasing production and ensuring remunerative prices to farmers through pre and post harvest management and support activities, the industry is assisted through adoption of upgraded technology in spice processing, setting up of quality evaluation labs, quality certification and training of laboratory personnel for producing quality spices and making them available for exports.
This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.
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Increase in Import of Steel 
 Data pertaining to import of Iron & Steel under Chapter 72 and 73 of Indian Trade Classification (Harmonised System), 2012, Schedule – I (Import Policy) during the period 2012-2013, 2013-2014 and 2014-2015 (provisional) is as under:
Qty in Ton
Values / Rs Crore
Country
2012-13
2013-14
2014-15
(Apr'14 to Feb'15)*
 Qty
 Val.
 Qty
 Val
 Qty
 Val
BANGLADESH
13846
88.79
7652
56.84
8714
61.58
BHUTAN
102965
617.25
80941
589.93
72480
542.88
CHINA
1770193
8135.54
1120652
5921.24
3522779
15534.84
MALDIVES
8204
20.67
5196
13.77
5244
14.27
MYANMAR


23
0.06


NEPAL
64842
395.7
69465
387.97
72494
418.85
PAKISTAN
2038
24.22
1070
9.75
24
0.07
SRI LANKA
5763
15.47
3227
14.09
871
4.01
Grand Total
1967851
9297.64
1288226
6993.65
3682606
16576.5
*Note: Figures for 2014-15(Apr to Feb) is provisional.

            In budget 2015-16, tariff rate of basic customs duty on iron & steel falling under Chapter 72 and articles of iron or steel falling under Chapter 73 of Indian Trade Classification (Harmonised System), 2012, Schedule – I (Import Policy), has been increased from 10 % to 15%. However, no change has been made in the existing effective rates of basic customs duty on these goods.
Import of an item takes place only when similar item is either not available in the domestic market or is available at a cheaper rate outside the country than the one available in the domestic market. Certain specific grades /qualities of steel which are not produced in the country, especially for the use of automobile sector, engineering goods etc, are to be necessarily imported and such specific imports cannot be stopped. Moreover, steel sector has been deregulated; therefore, the role of the Government is limited to be a facilitator in growth of steel industry. The Government only lays down policy guidelines and the investment decisions for creation of new capacity are taken by individual investors based on commercial considerations.

This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.
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Export Made Through EOUs 

            The value of export made through the Export Oriented Units (EOUs) along with its share in total exports of the country during each ofs the last three years and the current year is as under:    
(Value in Rupees Crores)

Year
EOU’s Exports
India’s Exports
EOU’s % share of India’s Exports
2011-12
85201.02
1,465,959.39
5.8
2012-13
90180.67
1,634,318.28
5.5
2013-14
89642.09
1,905,011.08
4.7
*2014-15 (prov.)
64321.30
1,444,720.12
4.45


The amount of incentives and tax concessions provided to these units during the said period is as under:

(Value in Rupees Crores)
S.No.
Year
CST/DBK/TED Reimbursement
Duty foregone
1.       
2011-12
295.54
8996.80
2.       
2012-13
405.31
11528.45
3.       
2013-14
271.65
12834.39
4.       
2014-15 (prov.)
305.60
7813.25










The incentives and tax concessions are as per the Foreign Trade Policy and are in the nature of export promotion measures. Wherever, an instance of misuse of such incentives and concessions is noted, prompt action is taken as per rules.

Details of Show Cause Notices issued and Penalty imposed for misuse of incentives and tax concessions and violations of provisions of FTP are as under:

S.No.
Year
No. of cases
1.       
2011-12
43
2.       
2012-13
40
3.       
2013-14
59
4.       
2014-15 (prov.)
49


This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.
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 Declining Trend of Tea Exports 

Volume of export of Indian tea during 2014-15 has been lower than the level registered during 2013-14 primarily on account of fall in production of Assam Orthodox tea caused by delayed rains. Other factors that have contributed to the decline are increased supplies from Kenya leading to reduced average price of US$ 2.14/kg in the international market, and fall in demand in the high-value markets such as USA, Iran and Russia. 

The objective of the Merchandise Exports from India Scheme is to promote, inter alia, export of value added teas with a view to gain maximum foreign exchange earnings as against the export of bulk teas, which have limited potential for branding of India Tea. As per the Foreign Trade Policy (2015-2020) notified by the Directorate General of Foreign Trade (DGFT) most of the teas in packaged or value added form will receive reward at the rate of 5% of Free on Board (FOB) value for export to various destinations, whereas tea in bulk form including tea waste and other black tea will be eligible for reward at the rate of 3% of FOB value. 

Representation has been received from the Indian Tea Association suggesting restoration of the reward rate for bulk tea exports from 3% to 5% of FOB value as available under the previous Foreign Trade Policy (FTP). Such representations are regularly reviewed by the Government as part of updation of the FTP. Tea Board also has a strategy for increasing export of Indian tea with added focus on value-added teas. This includes setting up value-addition infrastructure, branding and sustained promotion in the key markets. 

This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today. 

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Imposing MEP on Onion and Potato 

Currently there is an MEP of USD 250 per MT on onions whereas MEP on Potato which was USD 450 per MT (w.e.f. 26th June, 2014), has been removed with effect from 20th February, 2015. 

MEP is a tool for calibrating export volumes to ensure that in case there is severe domestic shortage, such shortages are not exacerbate further on account of export of these commodities. In July 2014, the retail prices of onion were ranging between Rs.26/- per kg. to Rs.35/- per kg. in four metropolitan cities of the country while in March, 2015 the prices were in the range of Rs.19/- per kg. to Rs.31/- per kg. Similarly, In June, 2014, the retail prices of potato were ranging between Rs.16/- per kg. to Rs.31/- per kg. which have been reduced in March, 2015 between Rs. Rs.8/- per kg. to Rs.30/- per kg. 

There has been a decline of 13% in quantity terms in respect of onion export during 2014-15 as compared to 2013-14. In respect of Potato export, there was an increase of 57% as compared to previous year 2013-14. 

There is no declared Minimum Support Price (MSP) for Onion and Potato by the Union Government of India.

This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today. 

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Streamlining the Procedure for Grant of Industrial Licenses 

The initial validity of Industrial License for Defence Sector, as per Press Note 5 (2014 series) and Press Note 9 (2014 series), is presently three years, extendable upto seven years. 

In partial modification of the above mentioned Press Notes, the initial validity of Industrial License for Defence Sector is being revised to seven years, further extendable uptothree years for existing as well as future Licenses. This is being done as a measure to further promote ease of doing business, in view of the long gestation period of Defence Contracts to mature. 

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Impact of Global Recession on Cotton Growers 

As per the Second Advance Estimates of Ministry of Agriculture, India’s production of cotton during 2014-15 was 351.52 lakh bales (of 170 Kg each) as compared to 359.02 lakh bales in 2013-14 and 356.02 lakh bales in 2012-13. However, compared to the corresponding period of 2013-14, export of raw cotton during 2014-15 (Apr – Feb 2015), has declined by 41.32% in quantity terms and 46.60% in value terms. As exports account for a substantial share of India’s production of cotton, the decline in exports has resulted in a surplus for the domestic market and has impacted the cotton growers. Cotton Corporation of India (CCI) has undertaken large MSP operations in all cotton growing States. 

For safeguarding the interests of cotton growers in general and disposal of cotton to be procured under the MSP operations in particular, Ministry of Textiles has written to Indian High Commissions/Embassies in cotton deficit countries like Bangladesh, Vietnam, Indonesia, Turkey, Thailand to explore new avenues for export of cotton for stabilizing cotton prices in India. 

This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today. 

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Increasing Export of Iron ORE 

The export of iron-ore is presently under Open General License (OGL). High-grade iron-ore (+64% Fe) is canalized through MMTC. Exports are determined by availability and international market situations. 

Government has Long Term Agreements for supply of high grade iron-ore to Japan and South Korea through MMTC. A proposal for renewal of LTAs (for 3 years w.e.f 1.4.2015) is under way. Negotiations on quantity to be supplied and price thereof, shall commence after approval of renewal of LTAs. Iron-ore exports to Japan and South Korea under the LTA are largely made from NMDC mines in Bailadila, Chhattisgarh. 

This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today. 

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Import Policy for Marble 

The marble is covered under two chapters of ITC(HS) code, 68 and 25. The import of rough marble is covered under ITC (HS) code 25151100 and 25151210 and is restricted for import. The import policy for marble under these ITC(HS) codes is issued annually. The present import policy has been notified vide Directorate General of Foreign Trade notification No.99 dated 20th November 2014 (the same is available at DGFT website – dgft.gov.in). The import of marble in finished form is covered under ITC(HS) code 68021000, 68022110, 68022120, 68022190, 68029100 and 68029200 and is ‘free’ for import provided that the minimum import price is US$60 per square meter and maximum thickness of slab is 20 mm (notification No. 100 dated 5th December 2014). This is available at DGFT website – dgft.gov.in. 

The import policy of marble is issued annually after consultation with the stake holders and concerned State Governments. So far, the process of consultation for marble import policy for the year 2015-16 has not begun. 

This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today. 

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Mega Investors' Summit to attract Global Capital 

The Partnership Summit 2015 was organized by the Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce & Industry in association with the Government of Rajasthan and Confederation of Indian Industry (CII) at Jaipur, Rajasthan during 15-17 January, 2015.  The Partnership Summit is an annual event, being organized since 1995.  The theme of the Partnership Summit, 2015 was “Partnership for Shared New Realities”.

Trade and Economic Ministers of 24 countries and over 1000 delegates from 54 countries participated in the Summit.  The Summit also featured stalls and exhibition including the “Make in India” by DIPP and an exhibition by the Government of  Rajasthan. Key Indian companies and foreign organisations including C K Birla Group NBC (National Engineering Industries Ltd), Apollo Hospitals, Clarks Group of Hotels, The Bahrain EDB (Economic Development Board), JCB India Limited, Blue Star, Indian Wind Turbine Manufacturers Association (IWTMA), Mahindra World City Jaipur, PI Industries Ltd, The Sona Group, TVS Motor Company, Welspun Renewables Energy Pvt. Ltd., Golcha Associated Group, Hamriyah Free Zone, KPMG  in India, Shree Cement Ltd (SCL), Saint-Gobain India Ltd., Patton, Hindustan Coca-Cola Beverages Ltd., Airtel and Fortis participated in the exhibition.

During the summit discussions were held among the delegates in the following Plenary Sessions:
                                     i.        Plenary Session 1 – “Defining Shared New Realities”

                                    ii.        Special Plenary Session – “Two Decades of WTO : Why it Matters for Development”

                                  iii.        Special Plenary Session – “Resurgent Rajasthan : Gaining Speed”

                                  iv.        Plenary Session 2 – “US and India : Co-Creating a Shared Future”

                                   v.        Plenary Session 3 - “Mega-Regional Trading Blocs : Implications for Emerging Economies”

                                  vi.        Plenary Session 4 – “Make-in India : Offering a New Partnership Opportunity to Industry”

                                vii.        Plenary Session 5 – “Revitalizing South Asia Economic Cooperation : The Options in the Midst of Prevailing Constraints”

                               viii.        Plenary Session 6 – “Financing for Growth and Development”

                                  ix.        Plenary Session 7 – “Growing Importance of Service Sector in Manufacturing Value Chains”

                                   x.        Plenary Session 8 – “Global Development Agenda Beyond 2015”

The major initiatives taken by the Government to improve Ease of Doing Business in India include further opening up of multiple sectors for Foreign Direct Investment including Defence, Construction, Railways and Insurance. 

            A major thrust has been given to Defence Manufacturing by delicensing almost 60% items. The initial validity of Industrial License for Defence has been raised from 2 to 7 years, extendable upto 10 years. Process of applying for Industrial License (IL) and Industrial Entrepreneur Memorandum (IEM) has been made online and this service is now available to entrepreneurs on 24x7 basis at the eBiz website.  This had led to ease of filing applications and online payment of service charges. 14 services including IL, IEM, Employee  Registration with ESIC(Employees’ State Insurance Corporation), Employer Registration with EPFO(Employee Provident Fund Organisation), Company name availability (Ministry of Company Affairs(MCA)), Allotment of Directors' Identification Number (DIN), Certificate of company's incorporation, Declaration of commencement of business (MCA), RBI's Foreign Collaboration-General Permission Route, Advance Foreign Remittance (RBI), Permanent Account Number (PAN), Tax deduction Account Number (TAN), Issue of Explosive license (PESO) and Importer exporter code (IEC-DGFT) have been integrated with eBiz portal which will function as an online single window portal for obtaining clearances from various Governments and Government agencies.

            The number of documents required for export and import has been limited. Six best practices identified by the Government have been circulated among all the states for peer evaluation and adoption.

The Partnership Summit is a platform for dialogue and engagement among top leaders from across the globe, towards a greater understanding of forces that are shaping the world, the challenges that need global policy attention and the responses required to effectively manage them. The Summit did not seek investment announcements.


This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.

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Contribution of Manufacturing Sector to GDP 

Central Statistics Office (CSO) has recently revised the base year of National Accounts Statistics from 2004-05 to 2011-12, including introduction of new concepts such as Gross Value Added (GVA) at basic price. The sectoral contribution in the new series is now provided in terms of GVA, whereas in the earlier series such contributions were indicated in terms of GDP. CSO has informed that as per the advance estimates of national income 2014-15, the share of manufacturing in total GVA at basic prices in the year 2014-15 is estimated as 17 per cent. 

The National Manufacturing Policy (NMP) 2011 had envisaged enhancing the contribution of the manufacturing sector in GDP from about 15-16 per cent to 25 per cent in a decade’s time. However, no similar targets were envisaged in terms of GVA, as this concept was not in use at the time of preparation of NMP 2011. 

The Government has been taking measures including, inter alia, administrative and regulatory measures, to accelerate the growth of manufacturing sector in the country. For the creation of conducive business environment, the Government is engaged in simplifying and rationalizing the processes and procedures for boosting investor sentiment, simplifying the Foreign Direct Investment (FDI) policy and correcting the inverted duty structure. Some of the recent initiatives towards this end include pruning the list of industries that can be considered as defence industries requiring industrial license, permissible extensions in the validity of industrial license up to seven years, treating partial commencement of production as commencement of production of all the items included in the license etc. The recent amendments in FDI policy include allowing FDI in Defence up to 49% and FDI in Railway infrastructure up to 100%, easing the norms for FDI in construction and exempting FDI in medical devices from sectoral restrictions of pharmaceuticals and raising permissible FDI in insurance from 26% to 49%. 

Further, the Government has launched the e-biz Mission Mode Project under the National e-Governance Plan, and 14 Central Services spanning a number of Ministries and Departments are now integrated in the e-Biz portal. Besides, the Government is implementing the Delhi Mumbai Industrial Corridor (DMIC) project. In addition, the Government has conceptualized Amritsar Kolkata Industrial Corridor, Chennai-Bengaluru Industrial Corridor, Bengaluru Mumbai Economic Corridor and the Vizag-Chennai Industrial Corridor (as the first phase of an East Coast Economic Corridor), and setting up a National Industrial Corridor Development Authority for coordinating and overseeing progress of the various industrial corridors. 

The Government has launched a “Make in India” initiative under which 25 thrust sectors have been identified. Information on these 25 thrust sectors has been put up on ‘Make in India’s web portal (http://www.makeinindia.com) along with details of FDI Policy, National Manufacturing Policy, Intellectual Property Rights and the envisaged National Industrial Corridors including the Delhi Mumbai Industrial Corridor (DMIC). An Investor Facilitation Cell in 'Invest India' has been created to assist, guide and handhold investors during the various phases of business life cycle under the Make in India initiative with provision of back end support up to the State level. 

This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today. 

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Establishment of Industrial Clusters 

Information on proposed industrial clusters established / to be established in the various States of the country is not centrally maintained. However, Department of Industrial Policy and Promotionintroduced a scheme namely ‘Industrial Infrastructure Upgradation Scheme (IIUS)’ in 2003 for the development of Industrial Clusters under which a number of clusters have been supported over years. 

Further, during the 12th Plan, ‘Modified Industrial Infrastructure Upgradation Scheme (MIIUS)’ has been notified in July 2013. MIIUS has the objective of enhancing competitiveness of industry by providing quality infrastructure to catalyse and promote industrial growth, employment generation and technology upgradation in Industrial Estates/Parks/Areas and greenfield projects, under which so far 24 projects were accorded ‘in-principle’ approval. Out of these, 11 projects have also been accorded ‘Final Approval’, against which central assistance has been released in case of 5 projects. 

MIIUS inter alia has provision to support, as per demand, creation of Technical Infrastructure like Common Facility Centres, Research and Development-Product Development and Technical Demonstration Facility, Central Effluent Treatment Plant and other environment protection infrastructure, Training Infrastructure and Quality Certification and Benchmarking, which contribute to adoption of modern technology in the assisted industrial units. 

This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. NirmalaSitharaman in a written reply in Rajya Sabha today. 

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