The Union Ministry of Commerce and Industry has mandated that dust grades of tea produced in India must be sold through public tea auctions. A gazette notification states that 50% of other grades of tea should also be auctioned, to ensure fair price discovery in the industry.
The notification issued by the Commerce Ministry specifies that every registered tea manufacturer must sell a certain percentage of tea through public auctions. The order applies to tea manufacturing units in northeastern states and other regions, except mini tea factories.
The Tea Association of India has supported the move, emphasizing the need for fair price discovery in the industry. By promoting auction sales, the industry aims to address challenges and prevent its collapse. This initiative is crucial for the survival of tea planters and producers.
TAI President Sandeep Singhania expressed gratitude to the Commerce Ministry for the initiative. The proposal for 100% auction of dust grades is seen as a bold step towards reviving the tea industry. The stakeholders are urged to support this trial and assess its impact on the sector.
Assam, the largest tea producer in India, has a significant number of tea workers and small tea gardens. The state’s tea belts are vital for the livelihood of over 60 lakh people. As the industry faces challenges, the push for public auctions is expected to bring stability and sustainability to the tea sector.
