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North India Prepares for Dust Tea Auction Blitz in Kolkata

 

The Indian government has mandated a 100% auction of dust tea grades from North India starting April 1, 2024, for a three-month trial period. This decision, aimed at demand generation, better price discovery, and compliance with FSSAI norms, affects states like Arunachal Pradesh, Assam, Bihar, Himachal Pradesh, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Uttarakhand, and West Bengal. The Federation of All India Tea Traders Association (FAITTA), the Indian Tea Exporters Association (ITEA), and the Confederation of Indian Small Tea Growers’ Association (CISTA) have supported this move. However, the Assam Bought Leaf Tea Manufacturers’ Association (ABLTMA) has expressed opposition, citing potential disruption to their established marketing systems. The Tea Board chairman and the Indian Chamber of Commerce (ICC) tea committee have discussed the need for a constructive approach and possibly enhancing infrastructure if the trial extends beyond three months. The auction system in Kolkata, with about 2 million square feet of registered tea warehousing space, is considered capable of handling the additional quantities of dust tea during the lean season.

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