Assam and West Bengal Producers Demand Right to Choose Mode of Sale
Guwahati, April 17, 2026 — Facing rising financial pressures, four major tea industry associations from Assam and West Bengal have jointly appealed to Prime Minister Narendra Modi, urging the Central government to scrap the mandatory requirement of selling tea through public auctions.
In a joint representation submitted on April 16, the tea bodies argued that the compulsory auction rules are financially burdensome, delay sales, and threaten the overall viability of the region’s tea producers.
The Core Grievance: High Transaction Costs
The appeal was filed collectively by the Assam Bought Leaf Tea Manufacturers Association (ABLTMA), the North Eastern Tea Association (NETA), the Bharatiya Cha Parishad (BCP), and the North Bengal Tea Producers’ Welfare Association (NBTPWA). Together, these organizations represent approximately 60% of North India’s tea production.
The associations specifically flagged the Tea (Marketing) Control Orders of 2015 and recent circulars issued in February 2024 and October 2025. These orders mandate that producers must sell 100% of their dust-grade tea and at least 50% of their total annual tea manufactured through public tea auctions.
According to the associations, this mandate places producers at a significant commercial disadvantage. “The auction system involves higher transaction costs and longer selling cycles compared to ex-factory [private] sales,” the joint memorandum stated.
They highlighted that the cost of routing sales through public auctions is approximately ₹10 per kilogram. This amounts to nearly 5% of the average selling price, which they claim often exceeds the net profit margins of the producers, making the business increasingly unsustainable.
Demand for Market Freedom
The letter noted that Assam and West Bengal are the backbone of the domestic industry, contributing roughly 50% and 30% respectively, to the nation’s total output. North India alone produces nearly 1,120 million kilograms of the country’s total 1,350 million kilogram annual production.
The tea bodies argued that the mandatory auction requirement is fundamentally inconsistent with the government’s broader ‘Ease of Doing Business’ policy. They noted that no expert committee constituted by the Tea Board has ever explicitly recommended making auction sales compulsory.
Calling for the immediate withdrawal or modification of the orders, the associations urged the Prime Minister to allow tea producers the absolute freedom to choose between public auctions and private sales based on prevailing market dynamics. As an alternative, they requested suitable exemptions and relaxations to ease the immediate financial burden on affected stakeholders.
