Sale Of 100% Dust Grades Of Tea Through Auction

The Government has introduced the Tea (Marketing) Control (Amendment) Order, 2024 to facilitate sale of tea through auctions. This order will come into effective from April 1, 2024.

Under the amendment, every registered tea manufacturer must sell a minimum of fifty percent of the total tea manufactured in a calendar year through public tea auctions. Additionally, one hundred percent of dust grades tea manufactured annually in specified geographical areas must be sold through public tea auctions. These geographical areas include:

  • Arunachal Pradesh,
  • Assam,
  • Bihar,
  • Himachal Pradesh,
  • Meghalaya,
  • Mizoram,
  • Nagaland,
  • Sikkim,
  • Tripura,
  • Uttarakhand and
  • West Bengal,

However, this requirement excludes Mini Tea Factories.

Furthermore, the order clarifies that dust grades of tea include all grades listed as dust grades in the Indian Standard IS 4541-1986.

To ensure compliance, amendments have been made to FORM-E of the order.

Additionally, tea manufacturers must also report the quantum of dust grades of tea manufactured during the month, along with details of the dust grades of tea used for manufacturing various tea products marketed directly or exported.

These amendments aim to enhance transparency, accountability, and fair trade practices within the tea industry. By regulating the sale of tea through public auctions, the order seeks to prevent monopolistic practices and promote market access for all tea producers, especially those in specified regions.