Business EconomyPosted at: Apr 17 2026 7:29PM


Tea bodies urge PM Modi to scrap mandatory auction norms, seek market freedom

Siliguri, Apr 17 (UNI) Four major tea industry bodies from Assam and North Bengal have jointly appealed to Prime Minister Narendra Modi, seeking urgent amendments to existing regulations mandating the compulsory sale of tea through public auctions, warning that the policy is placing severe financial and operational strain on producers.
In a letter sent on April 15, the Assam Bought Leaf Tea Manufacturers Association (ABLTMA), North Eastern Tea Association (NETA), Bharatiya Cha Parishad (BCP), and North Bengal Tea Producers' Welfare Association (NBTPWA) raised concerns over provisions under the Tea (Marketing) Control (Second Amendment) Order, 2015 and the subsequent 2024 amendment.
The Associations, which collectively represent a significant share of North India's tea output, urged the Prime Minister to withdraw or suitably modify the requirement that mandates at least 50 per cent of total annual tea production be routed through public auctions. They argued that such compulsion undermines market flexibility and imposes additional costs on producers.
In their representation, the organisations highlighted four key demands. First, they called for the withdrawal or modification of the 50 per cent compulsory auction clause introduced under the 2015 notification. Second, they sought similar reconsideration of the 2024 amendment, which not only reiterates the 50 per cent requirement but also mandates that 100 per cent of dust-grade teas be sold through auctions.
Third, the Associations stressed the need to allow producers the freedom to choose their mode of sale—whether through auctions or private channels—based on prevailing market conditions. They argued that such flexibility is essential for improving efficiency and sustaining profitability in a highly competitive sector.
Finally, as an alternative, they requested that the government consider granting suitable exemptions or relaxations to affected stakeholders under existing provisions of the Tea (Marketing) Control framework.
The industry bodies maintained that compulsory auction sales increase transaction costs and lengthen the sales cycle, often eroding already thin profit margins. They also contended that such restrictions run counter to the government's stated objective of promoting ease of doing business, and called for policy reforms to ensure a more balanced and sustainable growth environment for the tea sector.
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