Mandatory Auctions for All Grades of Darjeeling Tea Are Under Consideration

Telegraph, The
Times of India

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Second flush, teas are usually flown to destinations around the world. These transactions
represent 55% of volume and 75% of total sales for the year.

Source: The
He told the
Times of India who”Practically speaking, this may result in cost crash of Hills [Darjeeling] tea and most of the members may not agree with this proposition. However, prior to making a remark, we need to observe the modalities. The assembly is crucial.”
If all Darjeeling tea is pressured into auctions, sellers and the Tea Board stand to benefit. This is because measures of quantity and quantity and things like taxes based on earnings will establish norms.
The proposition is controversials as growers fear that auctions that are awkward and time-consuming will delay shipments, leading to a decrease in quality without a guarantee of higher returns. DTA Chairman Binod Mohan, said members are passionate about the proposition.

The gardens function in clusters possessed by 10 firms.

Tea workers wonder why lucrative gardens in Darjeeling find it hard to meet payroll. Photo by Pullock Dutta/World Tea News

Costs last year averaged $5.93 (INRs419) per kilo, based on Tea Board of India statisticians. Immediate earnings generating $200 (INRs14,000-18,000) each kilo are typical. The mid-point is INRs2,000-4,000 a kilo for good tea, with lower grades bringing INRs450-500 each kilo although one tea sold for $ 2,800 per kilo last year.

Published at Tue, 05 Nov 2019 10:14:41 +0000
The board made it clear that growers
In 2016 Darjeeling growers transitioned to a contemporary e-auction that permitted buyers to participate, from a version, practiced as Colonial days. Lead to more equitable rewards for the finest of the fine tea of the region and the transition was expected to improve price discovery. Prices have fallen. Very little of the tea is now listed for auction with the best offered directly to clients in Europe, Japan, Russia and the U.S.
On the auction stage so we can recognize the true value of the tea,” Tea
Board deputy chairman Arun Kumar Roy told reporters. Routing all of tea through auction
houses will enable the board to keep tabs on how much is generated, said Roy.

During the initial flush and ancient at the


A niche product such as this, we feel there is a need to intervene and see that
every kg is accounted for.”

Producers in the 87 gardens that make up India’s first Geographical Indication (GI) tagged merchandise will meet next week to consider that a Tea Board of India proposal to make auctions mandatory. Sizeable quantities of tea advertised a lack of transparency in transactions and as Darjeeling contain only a portion of the tea that was high-value due to unscrupulous mixing.
Roy told The Telegraph at Kolkata”for
Who submit their teas to auctioneers controls they’re trying to find and can always buy it back establishing the pricing.

“We Would like to get 100 percent of Darjeeling teas
Kilos were auctioned. In the past, volume was nearer to 3.5
million kilos. Growers in the area are needed to sell at least 50 percent of their
tea in auction. In Sri Lanka TMCOs require 100 percent compliance.

Falling prices can induce growers to participate in mandatory auctions for Darjeeling tea. Photo by Adobe Stock.

Only 1.5 million kilos of the 7.7 million