Iran, Taiwan reject Indian tea shipments citing phytosanitary issues

Taiwan and Iran have rejected three containers of tea sent from India due to phytosanitary issues and presence of pesticides beyond permissible limits, Mint reported quoting people familiar with the matter. 

The economic crisis in Sri Lanka has affected its tea exports and a new opportunity has emerged for Indian tea exporters, but the recent rejections may hamper the bid.

However, export rejections remain extremely low, according to an official quoted by Mint.

“Only two containers have come back from Taiwan and one from Iran. The maximum residue level (MRL) in Taiwan is too low and exporters are aware of the risk," he added.

MRL, the maximum concentration of pesticide residue, mostly occurs in or on food and feeding material after pesticides are used. Nearly 95 per cent of the rejected tea containers had Quinalphos beyond the permissible limit, exporters said. 

In India, MRL for chemical Quinalphos is 0.01 mg per kg, a former official of the Tea Board of India said. The standard is among the strictest in the world. For the European Union, the standard is at 0.7 per kg and for Japan, it is 0.1. 

Meanwhile, the container rejected in Iran was due to phytosanitary issue as some unsanitary matter was found in the tea, the official said. "It was not the fault of the producer, but the exporter is to be blamed," he added. 

At 0.01 parts per million (ppm), Taiwan has an extremely strict MRL requirement, which makes it difficult for Indian as well as Vietnamese and Chinese exporters to comply with.

In Iran, Sri Lanka was the only competitor for Indian tea exports. With Sri Lankan economy facing challenges, Iran's entire market is up for grabs for Indian tea exporters. 

India's tea export slipped to $700 million in FY21 from $785 million in FY18, data shows. India's tea industry has not seen many reforms, experts said, as much of the production and exports are still done in the traditional way, the report said.