ATPA urges Centre to expand 100% auction rule for CTC tea grades

Guwahati, Dec 2: The Assam Tea Planters Association (ATPA) has appealed to the Union government to include the fannings grade of CTC tea in the mandated 100% auction sale, alongside the dust grades already covered by the Tea (Marketing) Control (Amendment) Order, 2024.

In a memorandum submitted to Union Commerce and Industry Minister Piyush Goyal, ATPA chairman Samudra Prasad Baruva highlighted the need for stricter implementation of the existing auction rules and additional tea grades to enhance transparency and market efficiency.

Baruva noted that strict monitoring of pesticide residues and implementing 100% dust-grade auctions have been instrumental in promoting Indian tea as a safe and high-quality product. He explained, “100% dust auction not only mapped pesticide MRLs but also created buoyancy in the market. Bringing the fannings grade under this would further plug loopholes and enhance industry integrity.”

The ATPA also urged the Tea Board of India to rigorously enforce the dust auction mandate, citing instances of non-compliance during the current year.

While acknowledging the Tea Board’s efforts to stabilize the market by curtailing supply, Baruva emphasized the need for demand-side solutions for sustainable growth.

The ATPA proposed that the Tea Board be empowered to actively market Indian tea both domestically and internationally and allocate dedicated funds for marketing initiatives, including participation in global trade fairs, which have historically proven effective in fostering business-to-business (B2B) connections.

The ATPA underscored the importance of channelling all tea sales through a unified auction platform to boost competition and transparency. Commending recent reforms in the auction system, the association encouraged the Tea Board to expedite measures to enable a full transition to this framework.

“An efficient auction system benefits all stakeholders by creating a competitive and transparent marketplace,” the memorandum stated.

The ATPA also advocated for an early closure of the auction season by the end of November, citing better price realization during the current year as evidence of its efficacy.

The ATPA’s proposals aim to strengthen the Indian tea industry’s market position while fostering sustainable practices. With the government and Tea Board’s support, these measures could not only safeguard quality and pricing but also bolster India’s reputation in the global tea market.

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