Introduction: On February 23, 2024, the Ministry of Commerce and Industry introduced the Tea (Marketing) Control (Amendment) Order, 2024, amending the Tea (Marketing) Control Order, 2003. This amendment aims to regulate the marketing of dust tea grades produced in specific regions of the country. This article breaks down the key changes and implications for the tea industry.
Detailed Analysis: The amendment introduces a significant change in paragraph 21 of the 2003 Order. Registered tea manufacturers are now obligated to sell a specified percentage of their total tea through public tea auctions. The amendment outlines that fifty per cent of total tea, excluding dust grades, must be sold in calendar years. Additionally, one hundred per cent of dust grades tea manufactured in certain states must also be sold through public auctions.
The order exempts Mini Tea Factories from this requirement. The definition of “dust grades of tea” is clarified in alignment with the Indian Standard IS 4541-1986.
Further, the amendment introduces a new clause (viii) in FORM-E, requiring manufacturers to report the quantum of dust grades of tea manufactured during the month. This includes details on total dust grades manufactured and used for various tea products.
Key Points of the Amendment:
- Effective Date: April 1, 2024
- Applicability: Applies to dust tea grades manufactured in Arunachal Pradesh, Assam, Bihar, Himachal Pradesh, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Uttarakhand, and West Bengal.
- Requirement: Mandates 100% sale of dust tea grades through public tea auctions conducted by licensed organizers.
- Exemption: This rule does not apply to mini tea factories.
Expected Impact:
- Increased Price Transparency: Public auctions are expected to bring more transparency to the pricing of dust tea grades, potentially benefiting producers.
- Improved Market Access: This move might facilitate wider market access for producers, especially smaller ones, by offering a centralized platform for selling their tea.
- Potential Challenges: Adapting to the new system and ensuring efficient auction processes could pose initial challenges for stakeholders.
Background: The Tea (Marketing) Control Order, 2003, regulates various aspects of tea marketing in India. This amendment is the latest in a series of modifications made to the order over the years. The stated purpose of this specific amendment is to ensure “fair and transparent marketing” of dust tea grades.
Conclusion: Tea manufacturers need to adapt to the Tea (Marketing) Control (Amendment) Order, 2024, by ensuring compliance with the new auction requirements. Understanding the implications and adjusting manufacturing and reporting processes is crucial for a seamless transition.
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MINISTRY OF COMMERCE AND INDUSTRY
(Department of Commerce)
ORDER
New Delhi, the 23rd February, 2024
S.O. 854(E).—In exercise of the power conferred by sub-sections (3) and (5) of section 30 of the Tea Act, 1953 (29 of 1953), the Central Government hereby makes the following order further to amend the Tea (Marketing) Control Order, 2003, namely:
1. (1) This order may be called the Tea (Marketing) Control (Amendment) Order, 2024.
(2) It shall come into force with effect from the 1st April, 2024.
2. In the Tea (Marketing) Control Order, 2003, (hereinafter referred to as the said Order), in paragraph 21, for sub-paragraph (1), the following sub-paragraph shall be substituted, namely:-
‘(1) Every registered tea manufacturer shall, on and from the date of commencement of the Tea (Marketing) Control (Amendment) Order, 2024, sell-
(i) not less than fifty per cent. of total tea manufactured in a calendar year, excluding tea mentioned in clause (ii); and
(ii) one hundred per cent. of dust grades tea manufactured in a calendar year in its manufacturing units located in the geographical area of States of Arunachal Pradesh, Assam, Bihar, Himachal Pradesh, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Uttarakhand and West Bengal,
through public tea auctions, held under the control of organiser of tea auction licensed to do so under this order:
Provided that this paragraph shall not apply to a Mini Tea Factory.
Explanation. For the purpose of this paragraph, the “dust grades of tea” shall include all grades listed as dust grads in the Indian Standard IS 4541-1986’.
3. In the FORM-E of said order, in Part-I, in serial number 10, after clause (vii) and the entries relating thereto, the following clause and entries shall be inserted, namely:-
“(viii) Quantum of dust grades of tea manufactured during the month (in kgs)
| Total Dust grades of tea manufactured | Total Dust grades of tea used for manufacturing of packet tea, instant tea, tea bags, aromatic tea, green tea, quick brewing black tea and organic tea marketed directly by the manufacturer or exported directly (refer paragraph 21(2) of the Tea (Marketing) Control Order, 2003) |
[F.No. K-57023/17/2023-PLANT A]
AMARDEEP SINGH BHATIA, Addl. Secy.
Note: The principal Order was published in the Gazette of India, Extraordinary, Part-II, Section-3, Sub-section (ii) vide S.O. 1 (E), dated the 1st January, 2003 and subsequently amended vide following notifications, namely:-
1. S.O.247 (E), dated the 28th February, 2003;
2. S.O.430 (E), dated the 10th April, 2003;
3. S.O.270 (E), dated the 27th February, 2004;
4. S.O.1170 (E), dated the 20th October, 2004;
5. S.O.1017 (E), dated the 15th July, 2005;
6. S.O.1012 (E), dated the 15th April, 2015;
7. S.O.2688 (E), dated the 1st October, 2015;
8. S.O.3319 (E), dated the 25th October, 2016;
9. S.O.21 (E), dated the 3rd January, 2017;
10. S.O. 2288(E), dated the 4th June, 2018;
11. S.O. 2560 (E), dated the 31st July, 2020;
12. S.O. 3086(E), dated the 30th July, 2021; and
13. S.O. 5294(E), dated the 17th December, 2021.
