Image used for representational goal solely. File
GUWAHATI The Ministry and Commerce and Industry has made it necessary for dust grades of tea produced in India to be bought by public auctions.
A gazette notification by the Ministry on February 23 additionally stated that at the least 50% of different grades of tea – orthodox and the granular CTC (crush, tear, and curl) primarily – ought to attain the markets by the public sale route.
“Every registered tea manufacturer shall, on and from the date of commencement of the Tea (Marketing) Control (Amendment) Order, 2024, sell (i) not less than fifty per cent of total tea manufactured in a calendar year… and (ii) one hundred per cent of dust grades tea manufactured in a calendar year in its manufacturing units… through public tea auctions, held under the control of organiser of tea auction licensed to do so under this order,” the notification learn.
Barring mini tea factories, the order is relevant for tea manufacturing models in Arunachal Pradesh, Assam, Bihar, Himachal Pradesh, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Uttarakhand, and West Bengal.
‘Fair price discovery’
The Tea Association of India (TAI), one of many main our bodies of planters and tea producers, stated it had been advocating the adoption of the general public public sale as a single gross sales channel to make sure “fair price discovery” for the beverage trade “facing unprecedented challenges and is on the verge of collapse”.
Many estates bypass the tea public sale centres and go for direct promoting, the place patrons dictate the costs.
“The proposal for a 100% auction commencing with only dust grades was put forward (by tea associations). Transitioning to 100% auction for dust grades represents a small yet significant step towards restructuring the existing system,” TAI president Sandeep Singhania stated.
Dust grades are the most affordable teas and represent roughly 20% of the whole tea manufacturing in North India (overlaying West Bengal and the Northeast too).
“We understand that implementing such changes comes with uncertainties and challenges. However, given the urgency of the situation, we believe it is necessary to test innovative solutions with full support for one season and assess their effectiveness and potential impact,” Mr. Singhania stated.
The TAI can also be dedicated to complying with most residue ranges (of pesticides) and advertising teas as a wholesome beverage, he stated.
