The Tea Board of India wants 100% of the country’s tea output (except the quantity meant for direct exports) to be routed through the auction system saying that this is considered to be the most secured way of marketing.
It has recently issued a notice in this regard seeking the industry and the trade’s comments on this matter by this month-end. Currently all registered manufacturers have to sell 50% of their crop through public auctions.
However, it is being increasingly felt that this measure, introduced last year to improve price-realisation, may not have achieved its objective. “Allowing partial routing through auction is leading to offering low quality teas which is affecting the entire price-realisation mechanism” the Tea Board said.
It also said that a detailed analysis of auction participation by the manufacturers is being presently carried out by the industry regulator. The Tea Marketing control order of 2003 was amended in October 2015 through a notification to put in place the 50% mandatory system.