India–EU FTA Opens New Avenues for Tea Exports, TAI Cautions on Strict EU Norms

Guwahati: The Tea Association of India (TAI) has welcomed the conclusion of the India–European Union Free Trade Agreement (FTA), saying it creates new opportunities for Indian tea exports but also warned that strict EU regulatory norms may pose challenges for the industry.

In a statement issued on Wednesday, TAI said that India currently exports around 19–21 million kilograms of tea annually to EU countries, with Germany and Poland serving as major entry and redistribution hubs.

“The India–EU FTA holds significant promise for the Indian tea industry in terms of expanding market access and enhancing competitiveness,” said TAI President Shailja Mehta. However, she also noted that the benefits would depend largely on how regulatory concerns are addressed.

TAI flagged issues related to the EU’s stringent regulations on maximum residue limits, food safety, traceability, packaging and labelling, which continue to be major hurdles for exporters.

"However, EU regulations on Maximum Residue Limits (MRLs), food safety, traceability, packaging, and labelling continue to pose challenges. The industry looks forward to provisions in the FTA ensuring regulatory transparency, science-based standards, and timely consultations before the introduction of new measures,” Mehta said.

While duty rates on black tea and most green tea categories are already nil, the association said the elimination of duties on small-pack green tea imports under the FTA would further strengthen India’s export potential.

At the same time, emerging EU norms on sustainability, environmental compliance and human rights due diligence are expected to increase compliance costs, particularly for small and medium tea producers.

TAI stressed that complementary domestic support would be crucial for exporters to fully leverage the agreement. This includes assistance for certification, testing, traceability systems and capacity building.

The association also called for early stakeholder consultations and alignment of domestic schemes with FTA commitments to ensure that Indian tea producers are well prepared to tap the EU market.

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