Tea Board License

Primary Functions of the Tea Board of India

The Tea Board of India plays an important role in promoting the tea industry. It organizes international campaigns, participates in trade fairs, and markets Indian tea globally. The Board also funds research and development projects aimed at improving tea cultivation and processing, which helps enhance yield and quality. Let's discuss the main functions of Tea Board of India:

International Promotion and Branding

The Tea Board of India actively promotes Indian tea in global markets through international campaigns, trade fairs, and exhibitions. These initiatives aim to position Indian tea brands as premium products, enhancing their global reputation. By participating in key global events, the Board builds connections with international buyers and distributors. It also develops marketing materials and promotional content tailored to various foreign markets. This strategic promotion helps increase exports and boosts foreign exchange earnings for India.

Support for Research and Development

The Board funds multiple research and development (R&D) projects focused on improving tea cultivation methods and processing technologies. This includes research on pest control, climate-resistant tea varieties, and sustainable farming techniques. Collaborating with research institutes, it works to enhance crop yield, improve flavor profiles, and maintain consistent quality. The R&D efforts also aim to lower production costs, making tea cultivation more profitable for small and large producers alike. Ultimately, this function helps maintain India’s competitiveness in both domestic and international markets.

Regulation of Quality Standards and Licensing

One of the key roles of the Tea Board is to regulate quality standards across the tea industry. It ensures that the tea produced, processed, and exported from India meets set quality benchmarks. To achieve this, the Board issues mandatory licenses like the Tea Board License and Registration Cum Membership Certificate (RCMC) for exporters. Regular inspections and quality checks are conducted to uphold India’s reputation as a reliable supplier of fine tea. This regulatory function safeguards both consumer interests and India’s brand image globally.

Financial Support and Welfare for Tea Workers

The Tea Board offers financial assistance to tea workers, small growers, and plantations through various schemes. These include subsidies for replanting, rejuvenation, irrigation, and welfare initiatives. Special attention is given to small tea growers who often lack access to modern resources and capital. The Board also funds worker welfare programs focusing on healthcare, education, and housing. These efforts aim to improve living standards in tea-growing regions and ensure the long-term sustainability of the industry.

Market Data Collection and Industry Insights

Another important function is the systematic collection and analysis of market data on tea production, consumption, exports, and prices. This information is shared with stakeholders like farmers, processors, exporters, and policymakers to support informed decision-making. By tracking market trends, the Board helps anticipate demand-supply gaps and price fluctuations. It also provides industry forecasts, helping businesses plan production and marketing strategies. Access to reliable data strengthens the overall competitiveness and resilience of the Indian tea sector.

Benefits of Tea Board License

The following are the benefits of Tea Board License in India:

Legal Recognition and Compliance

Holding a Tea Board License gives your tea business official legal recognition under the regulatory framework of the Government of India. This ensures you can operate lawfully in both domestic and international tea markets without risking penalties or shutdowns. It helps establish your company as a credible and compliant entity in the eyes of buyers, suppliers, and regulators. Legal recognition also opens the door for securing government approvals, certifications, and partnerships. Overall, it strengthens your business’s trustworthiness and legitimacy.

Access to International Market Opportunities

A Tea Board License allows you to participate in global trade fairs, exhibitions, and promotional campaigns organized by the Tea Board of India. These events help you showcase your tea products on an international stage, meeting potential buyers, distributors, and collaborators. They offer excellent networking opportunities, helping you expand your global footprint. By joining such international events, exporters gain exposure to new markets, trends, and buyer expectations. This helps position your brand among premium international tea suppliers.

Eligibility for Export-Import Entitlements

Licensed exporters can access various import and export entitlements under India’s export-import (EXIM) policy, such as duty drawback schemes and export incentives. These entitlements help improve your company’s profitability by reducing operational and tax-related costs. Without a Tea Board License, businesses cannot legally claim these government-provided benefits. Access to these schemes also encourages companies to scale up exports, contributing to higher revenues. It creates a financial cushion that makes Indian tea businesses more competitive globally.

Access to Training and Skill Development

The Tea Board regularly offers training programs and workshops for licensed growers, processors, and exporters. These sessions cover technical areas like cultivation techniques, quality control, packaging, and marketing strategies. Training helps businesses align with national and international standards, improving their product quality and marketability. It also supports innovation and the adoption of sustainable practices across the industry. By staying updated through Tea Board training, businesses can maintain a competitive edge and improve long-term performance.

Market Intelligence and Organic Certification Support

License holders receive access to the Tea Board’s market intelligence, which includes detailed data on tea production, demand trends, pricing, and export patterns. This information helps businesses make informed decisions and stay ahead of competitors. For organic tea producers, the Board also facilitates the process of obtaining organic certification, which is essential for entering premium organic markets. With certified organic status, businesses can command higher prices and attract environmentally conscious consumers. These combined insights and certifications create valuable market advantages.

Eligibility Criteria for Tea Board License

The Tea Board of India has laid out clear eligibility requirements for various participants in the tea industry to obtain a Tea Board License. This license is mandatory for ensuring legal compliance, accessing government benefits, and participating in both domestic and international tea trade. Below is an in-depth look at the different eligible categories.

Manufacturer Exporters

Manufacturer exporters are entities that manufacture tea products and export them under their own brand or company name. They may use raw materials sourced from their own tea plantations, buy from local growers, or even import raw tea leaves or related materials. These exporters oversee the entire manufacturing process, including blending, packaging, and branding, ensuring that the final product meets both Indian and international standards. They are a crucial part of the export chain and must hold a valid Tea Board License to access export incentives, participate in promotional programs, and maintain legal status.

Merchant Exporters

Merchant exporters are traders who do not engage in direct manufacturing but specialize in buying raw tea materials from various sources and arranging for their processing on a contract or job-work basis. They manage the logistics, packaging, and marketing but outsource the production process to third-party manufacturers or processing units. Merchant exporters play a significant role in connecting local suppliers with international markets. To operate legally and benefit from government trade policies, these exporters must also secure a Tea Board License.

Tea Growers

Tea growers, whether small individual growers or large estate owners, are eligible to apply for a Tea Board License. These individuals or entities are directly involved in cultivating tea and supplying it to manufacturers, exporters, or local markets. Obtaining a Tea Board License allows growers to participate in auctions, claim subsidies or grants, and access training programs provided by the Board to improve cultivation practices and yields.

Brokers, Buyers, Auction Organizers, and Distributors

The eligibility criteria extend to brokers who facilitate tea sales, buyers who purchase tea for domestic or international distribution, auction organizers who manage tea auctions, and distributors handling the logistics and delivery of tea products. Each of these roles is vital in the tea supply chain, and all must hold the appropriate Tea Board License to function legally. Licensing ensures transparency, fair trade practices, and adherence to quality standards within the industry.

By setting these eligibility standards, the Tea Board of India helps maintain the integrity, competitiveness, and sustainability of the Indian tea sector.

Who Needs a Tea Board License in India?

Entities that require a Tea Board License in India include:

Tea Growers

Tea growers are individuals or companies engaged in cultivating tea on estates or small farms. Whether they supply fresh tea leaves to local manufacturers or aim to sell directly in markets, they must have a Tea Board License. This license allows them to participate in official supply chains, access subsidies, and sell or export their produce legally. It also helps them benefit from government support programs aimed at improving tea cultivation.

Tea Manufacturers

Tea manufacturers handle the processing, blending, and packaging of raw tea leaves into finished products like loose tea, tea bags, or instant tea. They cater to both domestic and international markets and are responsible for maintaining product quality and standards. To operate legally, they must secure a Tea Board License, which ensures their products meet regulatory norms. This license also opens the door to export entitlements and participation in promotional schemes.

Tea Brokers

Tea brokers act as intermediaries, connecting tea producers with buyers through negotiations or auction platforms. They help in setting fair market prices and ensuring smooth transactions between sellers and buyers. Since they play a key role in the flow of tea within the supply chain, brokers are required to obtain a Tea Board License. This ensures that all trade activities they manage comply with Indian tea industry regulations.

Tea Buyers

Tea buyers include wholesalers, retailers, or commercial buyers who purchase tea in bulk at auctions or directly from manufacturers and brokers. These buyers then supply tea to markets, cafes, restaurants, or export it. To legally participate in tea auctions or direct purchase arrangements, buyers need a Tea Board License. This licensing system ensures that buyers operate transparently and adhere to fair-trade practices.

Tea Exporters

Tea exporters are businesses that specialize in shipping Indian tea products to international destinations. Whether they are manufacturer exporters or merchant exporters, they must hold a Tea Board License to qualify for government export incentives. This license validates their operations under India’s export-import policy, allowing them to access duty benefits, promotional schemes, and international trade opportunities.

Auction Organizers

Auction organizers manage the formal auction process where tea producers and buyers interact to set prices and complete transactions. These organizers oversee the logistics, bidding, and regulatory compliance of tea auctions. To run legal and recognized auctions, they need a Tea Board License, ensuring that the entire auction process aligns with industry standards and government rules.

List of Licenses Issued by the Tea Board of India

The Tea Board of India issues a variety of licenses, including:

Tea Board Export License

This license is mandatory for businesses or individuals exporting Indian tea to foreign countries. It ensures that only approved and quality-compliant tea products leave India’s borders. Holding this license grants access to export benefits under India’s export-import policies. It also helps maintain the international reputation of Indian tea by regulating what can be exported. Without it, exporters are not allowed to legally ship tea abroad.

Tea Board Distributors License

Entities involved in distributing or selling tea within the Indian domestic market need this license. It authorizes them to supply tea to wholesalers, retailers, or directly to consumers. This license ensures that distributed products meet national quality and safety standards. It also helps track and regulate domestic supply chains for better market oversight. Distributors without this license risk penalties and suspension of operations.

Tea Board Warehouse License

Exporters storing tea prior to international shipment must obtain this license. It certifies that the warehouse facilities meet proper storage, safety, and hygiene standards. Licensed warehouses protect tea quality by maintaining the right environmental conditions, such as temperature and humidity. It also enables smooth inventory management and traceability of export goods. The license is vital to avoid contamination or spoilage before export.

Tea Board Permanent Exporter License

This license is issued to exporters who are consistently engaged in tea export activities. It confirms that the exporter’s operations fully comply with long-term regulatory and quality standards. Holding a permanent license simplifies the renewal process and offers continued access to government schemes and incentives. It demonstrates the exporter’s credibility and reliability in international markets. Only serious, compliant businesses qualify for this certification.

Tea Board Buyer Registration

Authorized buyers participating in tea auctions must be registered with the Tea Board. This registration allows buyers to legally purchase tea in auction houses or marketplaces. It ensures that buyers follow ethical trading practices and meet payment and contractual obligations. Registered buyers are given access to premium auction lots and market data. Without registration, buyers are prohibited from participating in official tea auctions.

Tea Board Broker License

Brokers who facilitate tea sales between producers and buyers must hold this license. It authorizes them to operate in auction settings and represent sellers or buyers. The license ensures brokers meet professional standards and follow fair negotiation practices. It also enhances transparency and trust within the auction system. Licensed brokers help maintain market stability and efficient price discovery.

Tea Board Flavour Registration

Any flavors or additives used in tea products must be registered with the Tea Board. This ensures that only approved, safe, and high-quality ingredients are used in tea production. It protects consumer health and ensures compliance with national and international food safety regulations. Registered flavors also maintain consistency in product taste and quality. Without this registration, flavored tea products cannot be legally sold.

Mini Tea Factory License

Individuals or businesses wishing to set up small-scale tea factories need this certification. It verifies that the factory’s operations meet industry standards for equipment, hygiene, and worker safety. The license encourages small entrepreneurs to enter the tea processing industry while maintaining quality control. It also provides access to Tea Board support programs for mini factories. Operating without this license is illegal and can result in factory closure.

Tea Waste License

This license governs the disposal and management of tea waste generated during manufacturing or processing. It ensures that waste materials are handled sustainably, minimizing environmental harm. Licensed waste handlers are required to follow eco-friendly disposal or recycling practices. This license is critical to promoting sustainable tea production and reducing the industry’s carbon footprint. Without it, businesses face environmental compliance penalties.

Planting Permit

Any grower planning to plant or replant tea bushes must secure this permit from the Tea Board. The permit regulates new plantations to prevent overproduction and maintain soil health. It ensures that planting activities align with sustainable agricultural practices. Approved planting helps balance local ecosystem needs and industry demand. Growers without this permit may face fines or planting restrictions.

NOC for Manufacturing Unit Construction

Before constructing a new tea manufacturing facility, businesses must obtain a No Objection Certificate (NOC). This ensures compliance with environmental, zoning, and industrial regulations. The NOC certifies that the planned construction won’t harm local communities or ecosystems. It also confirms that the manufacturing unit’s design meets industry standards. Without this clearance, construction projects may be halted or declared illegal.

RCMC (Registration Cum Membership Certificate)

Issued under India’s export-import policy, the RCMC is mandatory for businesses wishing to import or export tea. It allows companies to access government incentives, concessions, and trade facilitation schemes. The certificate confirms the business’s membership with the Tea Board and adherence to trade regulations. It also helps monitor and promote India’s overall tea trade performance. Without an RCMC, tea businesses cannot legally engage in international trade.

Documents Required for Tea Board License

The documents required for obtaining a Tea Board License include:

• A copy of the Importer & Exporter Code (IEC) issued by the Directorate General of Foreign Trade (DGFT), duly attested with the company seal. The address on the IEC should match the address provided in the application form.
• Details of the Directors, Partners, or Proprietors, including names, contact numbers, and residential proofs like Voter ID, Driving License, or Passport, each attested with the company seal.
• A Declaration on Company Letterhead stating that none of the directors, partners, or proprietors are linked to any tea company whose license was previously cancelled or suspended by the Tea Board, duly attested.
• An Authorization Letter for the person signing and submitting the application on behalf of the company.
• Any additional documents or Demand Drafts required, as specified by the Tea Board.

How to Apply for Tea Board License?

The process of applying for a Tea Board License involves several key steps:

Documentation

The first and most important step is gathering all the required documents, such as business registration certificates, identity proofs, address proofs, GST details, and bank account information. Depending on the type of license, additional documents like processing unit details or export records may be needed. Applicants can submit the documents either online through the Tea Board of India’s official portal or physically to the designated regional office. Ensuring all documents are complete and correct avoids delays or rejections. Proper documentation sets the foundation for a smooth application process.

Application for Exporter License

Before applying for the Registration Cum Membership Certificate (RCMC), applicants must first secure the exporter license, which is mandatory for all tea export activities. To do this, they need to fill out Form A and attach the required supporting documents, such as business details and previous trade records if applicable. Along with the form, applicants must also pay the applicable Tea Board License fee, which varies depending on the scale of operation. Submitting this application accurately is critical, as errors may lead to processing delays. Once filed, the application moves to the review stage.

Approval of Exporter License

After receiving the application, the Tea Board carefully reviews all submitted forms and documents to verify the applicant’s eligibility and compliance with regulations. This may involve background checks, verification of business operations, and confirmation of legal standing. If the Tea Board is satisfied that the exporter meets all criteria, it issues the Exporter License, allowing the business to officially engage in tea export activities. This approval is essential, as the RCMC application cannot proceed without it. It usually comes with specific terms and conditions that the license holder must follow.

RCMC Registration

With the Exporter License in hand, the applicant can now apply for the Registration Cum Membership Certificate (RCMC), which formalizes the right to participate in India’s export-import framework. To do this, the applicant submits Form 19A and Form 198 to the Tea Board, along with the supporting documents and applicable fees. These forms capture detailed information about the applicant’s export intentions, product categories, and compliance commitments. The RCMC is especially important for accessing government incentives and export entitlements. It also acts as proof of membership in the Tea Board’s export network.

Approval of RCMC Registration

Finally, the Tea Board reviews the RCMC application to ensure all requirements are met and that the applicant aligns with national export standards. This includes confirming that the exporter has no outstanding legal issues and meets all compliance obligations. Upon successful review, the Tea Board grants the RCMC and issues the official Tea Board License along with relevant export certifications. This approval allows the applicant to fully operate as a recognized exporter and benefit from government trade schemes. Once issued, the license must be renewed periodically as per Tea Board guidelines.

Violations and Penalties under Tea Board of India

Violations under the Tea Board License framework can result in serious penalties. Violations include obtaining the license through misrepresentation, failing to comply with the terms and conditions of the license, ignoring directions issued by the registering authority, or breaching provisions of the Tea Act or related orders. The penalties for such violations include monetary fines, imprisonment, suspension of the Tea Board License, or complete cancellation of the license. To avoid these consequences, license holders must strictly adhere to all regulatory guidelines and maintain full compliance.

Products Registered Under Tea Board License

The Tea Board License covers a range of products, including:

Bulk Tea

Bulk tea refers to loose tea leaves that are typically sold in large quantities to wholesalers, packers, and exporters. It is not packaged for direct consumer sale but is essential for blending, repackaging, or further processing. This category includes black tea, green tea, and other varieties meant for large-scale distribution. Registering bulk tea ensures it meets the Tea Board’s quality and safety standards. Without proper registration, bulk tea cannot be legally traded or exported.

Packet Tea

Packet tea includes small retail packages designed for direct consumer sales in supermarkets, tea shops, or online platforms. These packets often come in varying weights, such as 100g, 250g, or 500g, and are branded by manufacturers. Proper registration under the Tea Board License ensures that packet tea adheres to packaging, labeling, and quality norms. It also allows the product to participate in domestic and export markets legally. This certification builds consumer trust and brand reputation.

Tea Bags

Tea bags are small, pre-portioned sachets filled with tea leaves, designed for easy brewing in individual cups. They offer convenience and consistent flavor, making them popular in both domestic and international markets. Registration under the Tea Board License verifies that the tea used in bags meets approved standards. It also ensures that the manufacturing process, materials, and flavoring comply with health and safety regulations. Only licensed products can access government incentives and global trade opportunities.

Instant Tea

Instant tea comes in the form of granules, powders, or concentrates that dissolve quickly in hot water, offering a fast and easy tea experience. It is commonly used in ready-to-drink (RTD) products, vending machines, and travel packs. Registering instant tea under the Tea Board ensures the product is made from approved ingredients and processes. It also validates product quality for both domestic consumers and international buyers. Without licensing, instant tea products cannot enter regulated markets.

Flavoured Tea

Flavoured tea includes blends where tea leaves are infused with natural or artificial flavors, such as mint, jasmine, cardamom, or fruit essences. This category caters to consumers seeking unique and diverse taste profiles beyond traditional tea flavors. Registration under the Tea Board ensures that only approved, safe flavorings are used in the production. It also helps businesses tap into premium markets and international demand for specialty blends. Compliance with licensing safeguards both product integrity and consumer health.

Organic Tea

Organic tea is cultivated using certified organic farming practices, without synthetic pesticides or fertilizers. This tea category appeals to health-conscious consumers and is often sold at a premium price. Registering organic tea under the Tea Board involves additional organic certification and verification of farming methods. It allows producers to access premium domestic markets and meet international organic trade requirements. Licensing helps build trust with buyers and reinforces the authenticity of organic claims.

Specialty Tea

Specialty tea refers to high-end, niche varieties known for their distinctive flavors, processing techniques, or geographic origins, such as Darjeeling, Assam Orthodox, or White Tea. These teas often command premium prices and are sought after by connoisseurs, gourmet retailers, and international buyers. Registration under the Tea Board protects the authenticity and geographic indication (GI) of these unique products. It also provides access to specialized export channels and promotional support from the Board. Without licensing, specialty teas lose competitive advantages in premium markets.

Difference Between Tea Board License and RCMC

The Tea Board License and the Registration Cum Membership Certificate (RCMC) are two essential but distinct authorizations required by tea exporters in India. While they often go hand-in-hand, they serve different purposes and have separate functions within the export framework.

The Tea Board License is a specialized license issued exclusively by the Tea Board of India. Its primary purpose is to authorize and regulate the export of tea products from India. This license ensures that the exporter meets the quality standards, safety regulations, and legal compliance set by the Tea Board. Without a valid Tea Board License, no entity can legally export tea outside India, regardless of how large or small their operations are. It applies only to the tea industry and includes various categories such as bulk tea, packet tea, tea bags, instant tea, flavored tea, organic tea, and specialty teas. Essentially, the Tea Board License acts as a sector-specific permission, ensuring that all tea export activities are traceable, compliant, and aligned with India’s tea industry regulations.

On the other hand, the RCMC (Registration Cum Membership Certificate) has a broader role. It is a general certification required for exporters across various industries, not limited to tea, and is issued by export promotion councils and commodity boards, including the Tea Board of India. The RCMC certifies that the holder is a registered member of the respective export promotion body. More importantly, it qualifies the exporter to access government-backed export incentives, subsidies, duty drawbacks, and trade promotion schemes under India’s Foreign Trade Policy (FTP). Without an RCMC, even if an exporter has a valid Tea Board License, they cannot avail of the financial or promotional benefits provided by the government for boosting exports.

To summarize, while both the Tea Board License and RCMC are mandatory for tea exporters, they address different regulatory needs. The Tea Board License ensures that the exporter is authorized to conduct tea-specific export activities and meets industry quality standards. The RCMC, meanwhile, provides exporters with eligibility to participate in national incentive schemes and marks their formal registration under India’s organized export promotion system. Together, these certifications help ensure that the Indian tea industry operates competitively and compliantly on both domestic and global stages.