Four Assam-based tea organisations have urged Prime Minister Narendra Modi to allow tea producers the freedom to choose how they sell their produce, instead of being mandatorily required to sell through public auction centres.
The organisations—Assam Bought Leaf Tea Manufacturers’ Association (ABLTMA), North Eastern Tea Association (NETA), Bharatiya Cha Parishad (BCP), and North Bengal Tea Producers’ Welfare Association (NBTPWA)—stated that the cost of selling tea through auction centres often exceeds the net profit margins of producers, making the business increasingly unviable.
In a joint representation submitted on April 16, the organisations called for amendments to government orders issued in February 2024 and October 2025, which made it compulsory for tea producers to sell a significant portion of their output through public auctions.
According to the organisations, the rules require producers to sell 100% of dust-grade tea and at least 50% of their total annual production via auction centres. They argued that this system places tea producers at a disadvantage.
“The auction system involves higher transaction costs and longer selling cycles compared to direct ex-factory sales. The cost of selling through auctions is around ₹10 per kilogram, which is nearly 5% of the average selling price and often exceeds the net profit margins,” the organisations said.
They have requested the government to either withdraw or modify these orders, allowing producers to choose between auction and private sales based on market conditions. They also sought relaxation or exemptions for affected stakeholders.
Assam and West Bengal together account for nearly 83% of India’s total tea production, while South India contributes about 17%. Out of the country’s annual production of around 1,350 million kilograms, North India produces approximately 1,120 million kilograms.
The four organisations collectively represent about 60% of North India’s tea production, highlighting the scale and significance of their concerns.