Overview
- Four industry bodies from Assam and West Bengal asked the prime minister to withdraw or ease a rule that forces at least half of a factory’s annual tea output to be sold at public auctions.
- The groups say auction sales cost about Rs 10 per kg more than direct ex-factory deals, which they contend can wipe out thin profit margins and delay payments to estates and workers.
- The mandate stems from a 2015 order that set the 50 percent threshold for auctions, and the notification allows the registering authority to change that percentage with central government approval.
- The associations say they represent nearly 60 percent of north India’s production, noting north India produces about 1,120 million kg out of roughly 1,350 million kg a year nationwide.
- They cite Tea Board expert panels that sought to improve auction efficiency but did not back compulsory sales, and no government response to their request was reported as the rule remains in force.