Mon Dec 02 05:00:58 UTC 2024: ## Tea Producers Protest Mandatory Auction Sales
**GUWAHATI, INDIA (December 2, 2024)** – The North East Tea Association (NETA) is challenging a new regulation mandating that 100% of dust tea and at least 50% of other tea grades be sold through public auctions. In a letter to Commerce and Industry Minister Piyush Goyal, NETA argues that the February 26th gazette notification contradicts the government’s stated policy of “ease of doing business.”
NETA contends that producers should have the freedom to choose between private sales and public auctions, methods that have coexisted for over 150 years, each with its own advantages and disadvantages. The association cites the June 28th report of the R. Ramaseshan Committee, which acknowledged the importance of private sales in providing flexibility and direct buyer engagement.
The current auction system, NETA argues, is inefficient, with long “printing times” (the period between tea arrival and auction readiness) leading to unsold tea and quality degradation. For example, the November 26th auction in Guwahati saw a 28-day printing time, resulting in 40% of CTC teas remaining unsold. NETA proposes solutions including adjusting minimum lot sizes and improving auction efficiency.
Furthermore, expressing concern over declining tea exports (from 60% in the 1960s to 16% in 2023), NETA suggests a domestic marketing campaign to revitalize tea consumption, particularly among younger generations. The association believes that repositioning tea away from its image as a purely “conventional common man’s drink” is crucial for future growth.
First Piper 