Indian Tea Exporters Association Applauds Government’s Move for 100% Auction of Dust Grade Teas

The gazette notification will unleash all demand in a central marketplace, boosting competition, demand, and price to the benefit of all segments of the tea industry. This model has been extremely successful in other large tea-producing countries like Sri Lanka, where 100 pct teas are required to be sold via auctions. ITEA believes that this trial will afford much-needed transparency and comprehensive and legitimate testing of all production units as per FSSAI protocol and will incentivise better quality production for the benefit of Indian tea lovers.

Anshuman Kanoria, Chairman of ITEA, said, “Increased availability of quality and compliant teas will boost Indian tea exports, which play the most important role in balancing demand and supply. ITEA believes that the 100 pct auction should also be extended to the export sector of Orthodox and Darjeeling teas to boost competition and price discovery. Ultimately, this initiative of the Government of India will be a win-win for the image of Indian tea and all stakeholders, barring those who have a vested interest in continuing spraying chemicals and generally depressing tea prices by flooding the market with lower-quality teas.”

ITEA is pained to note statements from some vested groups threatening to defy the directive in an attempt at unsustainable continuation of malpractices. While thanking the Tea Board of India and our Honourable CIM, ITEA calls for Unity in the Indian tea trade and urges all stakeholders to come together and accept the trial initiative in the interest of Indian tea.