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Tea Board License

Requirements for setting up Mini Tea Factory License

calendar25 Aug, 2022
timeReading Time: 4 Minutes
Mini Tea Factory License

The Industries of Tea are under the control of the Union Government. The Tea board was set up under Tea Act 1953 and was constituted in April 1954. The Board was set up to promote Indian Tea within and outside India. The Board functions under the statutory body of the Central Government under the Ministry of Commerce[1]. The Board is constituted of 31 members who are members of parliament, tea traders, consumers, tea producers and representatives of Governments from Tea producing states and trade unions. Every three years, the Board is reconstituted. The following are the requirement for setting up Mini Tea Factory License.     

Norms for Setting up Mini Tea Factories

  • The Tea board of India has approved norms for setting up micro and Mini tea Factories by small tea growers by small tea growers, who have accounted for 35K per cent of India’s annual Tea Production.
  • Growers holding tea areas up to 10-12 hectares are considered small tea growers, and there are around two lakh such holdings,
  • With the announcement of the guidelines, it is expected that the STG sector would be able to establish exclusive factories and adopt good manufacturing practices therein, a senior official of the Confederation of Indian Small Tea Growers Association (CISTA) said.

Definition of Mini Tea Factory for setting up Mini Tea Factory License

  • It means a Tea factory owned by the small growers or an association of small growers, or a producer company. Sources require all required Tea leaves from their plantation to manufacture Tea and have the capacity to produce not more than 500 kilograms of made per day.

Functions of Tea Board

The Tea Board has comprehensive functions and various responsibilities as directed by the central government. Some of the functions of the tea board are discussed below for a better understanding.

  • Technical and financial assistance is provided for tea manufacturing, cultivation and marketing.
  • Export production and development of the tea industry in India
  • Helping in R&D activities for Improvement and Augmentation in tea production and quality.
  • Labour welfare schemes provide limited financial assistance to plantation workers and their wards.
  • To assist and encourage, technically and financially to unorganized small grower sector.
  • Collecting and Maintaining statistical data and publication.
  • The Board shall assist in controlling insects and other pests affecting the Tea.
  • Improving the marketing of Tea outside and within India
  • Subscribing to the company’s share capital or entering into any agreement or other arrangement.
  • Better working conditions and improvement of incentives and amenities for workers.
  • Any other activities as assigned from time to time by the Central Government.

The Board shall perform its function with subjects to such rules made by the central government.

Documents Required to Furnished for Mini Tea Factory License 

The following are the documents and Information that need to be submitted

  • Applicants name – (INTO BLOCK LETTERS)
  • Certificate of Incorporation in case of Producer Company/ Biometric Card No.
  • Mailing address with the Pin Code, E-Mail Id, Contact Number
  • Name of the Tea processing  Unit
  • Tea Processing units with Pin code, E-Mail Id, Contact Number.
  • Area of Tea which is under cultivation with break up, if the applicant is a small grower or an associate of small growers or producer company
  • Document indicative total green leaf produced per year with break up, if the applicant is a small grower, an association of small growers, or a producer company.
  • Annual production Capacity
  • List of Machines & Equipment installed with the date of Installation
  • Copy of factory layout drawn by a civil engineer.
  • A copy of FSSAI has been obtained.
  • Central Excise registration number and zone
  • Details of Bank and cheques to be drawn in favour of the Tea board. 

Registration of Mini Tea Process of Mini Tea factory

  • The applicant must apply to the Tea Board for the Tea Board License to be issued after receiving all the above documents.
  • The applicant must also submit the RCMC to one of the Tea Board of India’s regional, head, or zonal offices. The Tea Board License is issued if the entire application is deemed satisfactory after a careful review.

Guidelines for setting up Mini Tea Factory License

  • In January 2003, the Ministry of Commerce, Government of India, exercised its power conferred under the provision of the Tea Act. No manufacturing activities shall be carried on, except under a Valid Registration obtained under an order issued by Tea Marketing Control Order in respect of Tea factory owned or controlled by him.
  • Stipulates that no mini tea factory shall carry on the activities of selling, manufacturing or hold stock of Tea after 30 days of publication of this order except under a valid certificate obtained under this order. The certificate application shall be submitted to the certifying Authority in FORM – K within thirty days from the date of commercial manufacturing.
  • However, suppose the Mini Tea Factory is already set up before the publication of this order of Tea Marketing Control Order, 2003. In that case, it shall be deemed to be a manufacturer under the provision of the order, provided that it obtains a certificate within ninety days from the date of publication of the order of TMCO, 2003.

Validity of Mini Tea Factory License

Once the license is granted, the Validity of the Mini Tea Factory License is for the Lifetime. However, no renewal fee will be paid because its validity is for a lifetime.  

Conclusion

After reading this blog, we can conclude that the Ministry of Commerce, Government of India has exercised its power and allowed the small grower to grant Mini Tea factory License.

Read our Article:Different Types of Tea Board Licenses in India

Saiyam Shah

Saiyam Shah has done his LL.M in Business Law from Amity Institute of Advanced Legal Studies – Amity University. His area of interest is legal research related to Indirect – Tax and Company law. He has prior experience in Tax litigation, dealing with various Income – Tax Assessments and has good drafting skills in filing arguments and replying to Income – Tax Notices.

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