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Planters, exporters hail 100 pc auction of dust grade tea

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KOLKATA, March 12: A body of tea planters on Tuesday said the idea mooted by the commerce ministry for a 100 per cent auction of dust-grade tea is a welcome step.

Indian Tea Association (ITA), in a statement, said it appears to be the only solution to detect and test maximum residue levels (MRLs) in a transparent manner.

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Indian Tea Exporters Association (ITEA) has also hailed the commerce ministry’s decision to allow the sale of 100 per cent dust-grade varieties through the auction route on a trial basis.

ITA, the oldest and the largest association of tea producers, pledged its unequivocal support to the Tea Board and the commerce ministry in this endeavour.

“During the interaction with the commerce and industry minister, the association had supported the idea mooted for a three-month trial for 100 per cent dust auctions in north India,” the statement said.

The association also supports all initiatives to boost consumption of safe and compliant tea in India and to increase exports in a challenging global market, it said.

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ITA said it supports initiatives to promote tea as a safe, healthy and aspirational drink with the help of all stakeholders.

The Tea Board had recently issued an order, stating that 100 per cent of dust-grade teas manufactured in a calendar year should be sold through the auction mode under the provisions of the Tea (Marketing) Control (Amendment) Order, effective from April 1, 2024.

The exporters’ body said, in a statement, that the industry is passing through a “critical phase, largely due to oversupply of lower quality teas with questionable compliance standards”.

ITEA said that the government since long had a provision requiring 50 per cent of all tea produced to be sold through the auction route.

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“This had been willfully flouted. Issues relating to compliance which are key to boosting tea demand domestically and overseas have been often flouted,” ITEA alleged.

The association also said this had been successful in other tea-producing countries like Sri Lanka which requires 100 per cent sale of teas through the auction.

According to tea exporters’ body, this would increase the availability of quality-compliant tea which will boost exports that are needed for balancing demand and supply.

It also said the same should be extended to orthodox tea (including Darjeeling) to boost competition and for better price discovery. (PTI)

 

 

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