Compulsory tea auction scrapped

By Our Special Correspondent

NEW DELHI, JAN. 12. In a major policy decision, the Union Government has scrapped the system of compulsory auction of tea and has now allowed tea producers to sell their produce privately or through auction.

So far, under the Tea Marketing Control Order (TMCO) 1984, every tea producer had to sell 75 per cent of the produce compulsorily through auctions, subject to certain exemptions. But because of the falling prices at the auctions, the tea industry had been pleading with the Government to amend Clause 17 of the TMCO so that they could sell their production through any method of choice. The representations had come from the United Planters' Association of South India (UPASI), the Indian Tea Association, the Tea Association of India, the Nilgiris Bought Leaf Tea Manufacturers Association and others.

Taking note of their demand, the Union Commerce and Industry Minister, Mr. Murasoli Maran, today amended the TMCO, removing the clause for compulsory auction of 75 per cent of tea production in the country.

According to a Commerce Ministry note, the flexibility provided through the amendment would enable tea producers to have better options of marketing their produce, get better prices and bring relief to the tea industry.

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Section  : Business
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