New Delhi, Feb 9: The domestic packaged tea industry has shrunk 8.3 per cent during July-December 1998 following imposition of eight per cent excise duty during last budget.According to an ORG-MARG survey the 8.3 per cent shrinkage in marketshare of packaged tea during the six months after the budget is against 7.7 per cent decline recorded during July-September last year. Tea Packeters Association of India (TPAI) in a statement said increase in prices of packet tea had diverted a substantial market share for packet tea to the loose tea segment.
"Consumers are being forced to shift from branded packaged tea to loose tea consumption,"the association said. Meanwhile, TPAI has also petitioned finance ministry for the withdrawal of the duty to protect the interest of the consumers as well as the industry. The association said as against the common perception that packaged tea was mainly being consumed by affluent families.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.