Agri Business

Govt set to amend rules for selling tea at auctions

Our Bureau Chennai | Updated on January 24, 2018

Marketing control order to make sale of 70% produce mandatory

The Centre plans amending rules governing sales of tea through auctions. It will soon alter the Tea Marketing Control Order, 2003, making it mandatory for tea manufacturers to sell 70 per cent of their produce through auctions.

This amendment is being planned to ensure transparency in pricing and help small tea growers in realising better prices for green teas.

The Centre will also soon launch a unique and modified price stabilisation fund for the tea industry. The fund will provide crop insurance for small growers.

A delegation of Confederation of Indian Small Tea Growers Associations was given these assurances by RR Rashmi, Additional Secretary (Plantation) in Ministry of Commerce, during a meeting in New Delhi to discuss issues affecting small tea growers.

According to a press release from the confederation, the delegation had pointed out to the Commerce Ministry official a resolution passed at the 223{+r}{+d} board meeting of the Tea Board at Valparai in Tamil Nadu. It was then resolved that every bought leaf factory will sell not less than 70 per cent of total tea manufactured annually through public auctions.

“This will help in formulating a better price sharing formula for small growers,” said Bijay Gopal Chakraborthy, President of the confederation, in a statement.

Currently, the Tea Board fixes a benchmark price for tea produced by small growers. The price varies from ₹11-14 a kg, depending on the region. Small growers are concerned that green tea prices have remained stagnant for nearly a decade when prices of other commodities have soared during this period.

In the modified price stabilisation fund, self-help groups comprising small growers will get 40 per cent subsidy for setting up a micro or mini tea factory, the release said.

Tea research association will provide training to small growers on various aspects of production, including quality, pesticide usage and plant protection methods, the official told the delegation.

Published on January 19, 2015

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