CTC Tea Prices hit by Pesticide Issue

CTC Tea Prices hit by Pesticide Issue

Subject: Geography

Section: Crops

Context: The rejection of certain lots of first flush teas by buyers, both in domestic and international markets, has created a storm in a cuppa with prices of CTC (curl-tear-crush) dropping by nearly ₹30-40 a kg over the last few days.

Concept:

• A certain set of tea traders and buyers have recently cancelled their purchases, going by reports that indicate that the chemical content in some lots of teas is higher than the maximum residue levels (MRLs) and, hence, do not conform to the FSSAI standards.
• Nearly 39,000 kg of tea in Kolkata auction have been returned by buyers.
• Industry insiders are worried that this could well be a spoiler for tea prices during the peak quality second flush season. Second flush crop is very crucial for the tea industry, both in terms of production and prices.

MRLs:

• Many developed and developing countries fix their own Maximum Residue Limit (MRL) of pesticides on Raw Agricultural Commodities (RAC) based on their country specific Good Agricultural Practices (GAP) and dietary consumption pattern.
• In India, the Food Safety and Standard Authority of India (FSSAI) under Ministry of Health and Family Welfare evaluate the supervised trial residue data based on the approved GAP, for fixation of MRL.
• The maximum residue limit (also maximum residue level, MRL), is the maximum amount of pesticide residue that is expected to remain on food products when a pesticide is used according to label directions, that will not be a concern to human health.
• For tea, according to the Indian Tea Planters’ Association an MRL of10 mg/kg is currently established in India.