Major tea producer associations from Assam and West Bengal have formally approached Prime Minister Narendra Modi, requesting the withdrawal of a government notification that mandates the sale of at least 50% of their annual production through public auctions. The appeal, spearheaded by groups including the Assam Bought Leaf Tea Manufacturers Association (ABLTMA) and the North Bengal Tea Producers’ Welfare Association (NBTPWA), argues that such compulsory measures infringe upon their fundamental right to conduct trade freely.
The producers emphasized that the auction system imposes a heavy financial burden, with transaction costs reaching approximately ₹10 per kilogram—nearly 5% of the average selling price. This cost often exceeds the net profit margins of many tea estates. In their letter to the Prime Minister, the associations highlighted that the mandate contradicts the government’s “Ease of Doing Business” initiative. They pointed out that other commodity boards under the Ministry of Commerce do not face similar restrictions, leaving the tea sector uniquely disadvantaged by longer selling cycles and operational inefficiencies.
The industry bodies also noted that recent requirements to route 100% of “dust grade” tea through auctions in 2024 and 2025 have already failed to meet intended objectives, instead leading to escalated costs. By urging the Prime Minister to intervene, the producers are seeking the flexibility to choose between auction and private sales based on market dynamics. They maintain that forcing tea through public auctions is a regressive step that stifles the viability of the industry in Northeast India and Bengal.
