The Centre has notified a new Tea (Marketing) Control (Amendment) Order, 2015 after effecting amendments to some clauses of the Tea (Marketing) Control Order, 2003.
The major amendments include compulsory registration of manufacturer or producer of tea, obtaining a “no Objection Certificate” or grant of permission for enhancement of capacity from the Tea Board, sale of tea through public auctions with particular reference to Bought Leaf Factories, Fixation of price sharing formula and its compliance and so on.
It said that no manufacturer shall carry on the activities of manufacturing tea after 90 days of publication of the Order in the Official Gazette without obtaining an NOC in respect of each factory to be set up by the manufacturer.
On sale of tea through auction, the new order states that every registered Bought Leaf Factory shall sell not less than 70 per cent of the total tea manufactured in a calendar year through public auctions.
However, any tea marketed directly by the Bought leaf Factory (BLF) in the form of packet tea, instant tea, tea bags, aromatic tea, green tea, quick brewing black tea, organic tea and direct exports (excepting those sold through auctions abroad) shall be excluded while computing total production.
Monthly returnsFor sale of teas outside public auction, every registered manufacturer should submit the monthly returns within the time specified by the registering authority.
It has notified the formation of a green leaf price monitoring committee in each tea growing district with two representatives each from BLFs, small tea growers and estate factories, and an officer from the Board (not below the rank of Assistant Director and the Collector or Deputy Commissioner of the tea growing district).
Price-sharing formulaThis committee will monitor the average green leaf price based on the previous month’s average auction price of BLFs by applying the price sharing formula and oversee payment compliance to the small tea growers