Guwahati: Four leading tea producers’ associations from Assam and West Bengal have urged Prime Minister Narendra Modi to withdraw or modify rules mandating that at least 50% of annual tea production be sold through public auctions.
In a joint representation, the associations called for greater flexibility, arguing that producers should be allowed to choose the mode of sale based on prevailing market conditions. They contended that the existing provision places tea producers at a disadvantage by increasing transaction costs and extending sales cycles compared to ex-factory transactions.
The signatories—the Assam Bought Leaf Tea Manufacturers Association, North Eastern Tea Association, Bharatiya Cha Parishad, and North Bengal Tea Producers’ Welfare Association, stated that they collectively represent nearly 60% of tea production in north India.
Highlighting the scale of the sector, the associations noted that out of India’s annual tea production of about 1,350 million kilograms, nearly 1,120 million kilograms are produced in the Assam and North Bengal regions.
The groups have sought either withdrawal of the provision or suitable relaxation under the Tea (Marketing) Control Second Amendment Order, 2003. The rule, introduced by the Ministry of Commerce and Industry in 2015, requires registered tea manufacturers to route a minimum of half their annual output through public auctions, with provisions for periodic revision by the Centre.
In their letter, the associations said compulsory auction sales impose financial and operational burdens on producers. They pointed out that while several expert committees constituted by the Tea Board have examined the auction system and recommended improvements, none have supported making auction sales mandatory.
They also noted that past attempts to enforce compulsory auction sales have faced challenges, as reflected in multiple amendments to the Tea (Marketing) Control Order over the years.
The associations further argued that the mandate runs counter to the government’s stated objective of promoting ease of doing business, and limits producers’ ability to adopt efficient and viable marketing strategies.
They added that the requirement to sell tea through public auctions could infringe upon the freedom to carry on trade and business, and called for policy measures that better align with industry realities.