Assam: State government initiated process to digitalize tea auctions using AI, blockchain

In tandem with the celebration of 200 years of Assam tea, the state government has initiated the process to digitalize Assam tea auctions.
tea auctions
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Staff Reporter

Guwahati: In tandem with the celebration of 200 years of Assam tea, the state government has initiated the process to digitalize Assam tea auctions. The tea auctions will be conducted with the help of AI and blockchain technology. The Assam government is mulling these changes to bring about transparency and efficiency in the tea auction system.

Industry department sources said that the Guwahati Tea Auction Centre started functioning in 1970. Auctions started manually, and changes were gradually brought about to reach the stage that it has come to now. The state government will now start the use of AI and blockchain technology. Towards that end, discussions are being held with stakeholders in the tea industry. In the first year of its operation, GTAC had sold 9.1 million kg of tea at an average price of Rs 5.68 per kg. In 2023-24, the GTAC sold 166 million kg of tea at an average price of Rs 183 per kg. 45% of the total tea produced in Assam is sold through the GTAC.

Sources said the quality and the price of tea are fixed through tea tasting, which is done manually. Differences in the perception of tea quality from person to person cannot be ruled. But through the use of AI, there will be more precision in the perception of tea taste and quality.

The sources further said that the government is preferring the use of blockchain technology, as it provides an immutable and transparent ledger. In the context of the tea industry, this means that every entity involved in the production of tea and the supply chain—from the framers to processors, transporters, warehouses and retailers—has access to the same information about each batch of tea. It also ensures fair bidding, eliminates fraud and provides immutable records of transactions.

 Also Read: Assam: Mandatory auction of dust tea extended for six months

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