Tea Board has amended the pan India auction rules in line with the recommendations of the Ramaseshan Committee, introducing significant changes to the sampling norms under the Bharat Auction model as part of first phase of implementation.

A circular to this effect said that the amendments of pan India Auction Rule on Bharat Auction 2021 should come into force from July 1 at all registered tea auction centres of South India. However, this shall not apply to the auction centres of North India until further notice.

Though the committee report includes a wide range of suggestions on the rationalisation of sampling norms, only the major and most impactful recommendations are proposed for implementation with minor modifications aligning with the ground level practices at the initial stage, the circular said.

Improving price discovery

The implementation of the Ramaseshan Committee Report pertains to improving price discovery and market structure in the tea industry and it was examined by the Board in the light of extant rules, feedback received from various stakeholders and deliberations.

The report focuses on reforming the tea auction mechanism to ensure fairer price discovery for the brew, particularly benefiting bought leaf tea manufacturers. The recommendations include standardising lots and rationalising sampling norms in the Bharat Auction model.

Dhananjayan Krishnamurthy, president of Nilgiris Bought Leaf Tea Manufacturers Association told businesslinethe most notable and long-awaited change—one that the association has consistently advocated for over the past three years—relates to the eligibility and distribution of Free Trade Samples.

Sellers to decide on samples

As per the amended rule, he said buyers’ eligibility to receive free or paid trade samples shall now be decided solely by the sellers. Brokers are required to obtain the seller’s option prior to the dispatch of any samples. This amendment empowers sellers with complete discretion over the distribution of both free and paid samples, ensuring that their commercial interests are better protected and aligned with market realities, he said.

Engagement of third party service provider for drawing samples from the lots as recommended by Ramaseshan Committee will be explored for implementation at a later stage following due consultation with the industry, Tea Board circular said.

Published on June 16, 2025