Tea Board wants 100% of output sold via auctions


Note4students
Mains Paper 2: Polity | Statutory, regulatory and various quasi-judicial bodies.
The newscard throws light on the working style of Tea Board of India. Few takeaways from the newscard are:

Prelims Level: Read about how the auction takes place on
Tea output and the proposed changes. Do not miss the Back2basics about Tea board .UPSC has asked questions on Government institutions in 2017.

Mains Level: Not very Mains heavy

Context
• The Tea Board of India wants 100% of the country’s tea
output (except the direct exports) to be routed through
the auction system
• This is considered to be the most secured way of
marketing

The ongoing practice: All registered manufacturers have to sell 50% of their produce through public auctions Purpose not served

• This measure, introduced last year to improve price-
realisation, has not achieved its objective

• Allowing partial routing through auction is leading to offering low quality tea which is affecting the entire price realisation mechanism

Reception of the proposal
• Trade and industry sources were not very happy with the
proposal
• The low tea prices were not directly linked with the amount being offered in auctions
• Small tea growers were happy with the proposal since it would help them get better prices

Back2basics Tea Board of India
• It is a state agency of the Government of IndiaIt is established to promote the cultivation, processing, and domestic trade as well as export of tea from India
• It was established by the enactment of the Tea Act in 1953 with its headquarters in Kolkata
• The Tea Board India is responsible for the assignment of certification numbers to exports of certain tea merchants
• This certification is intended to ensure the teas’ origin, which in turn would reduce the amount of fraudulent labeling on rare teas such as ones harvested in Darjeeling
• The Tea Board India’s tasks include endorsement of the diverse production and productivity of tea
• It includes financial support of research organisations and the monitoring of advances in tea packaging as it relates to health beneficial aspects

 

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