Tea Board Orders Manufacturers to Sell 50% Production Through Auctions or Face Action

Tea Board India has issued a fresh circular reminding all registered tea manufacturers of a mandatory requirement to sell a minimum of 50 per cent of their annual production through public tea auctions in India — and warning that violations will be treated seriously.

The move comes after a compliance review revealed that a number of manufacturers had not been following the original directive, which has been in force since 2015.

The requirement is not new. The Central Government amended the Tea (Marketing) Control Order, 2003, through a gazette notification dated October 1, 2015, under the powers granted by the Tea Act, 1953.

Under Clause 21(1) of the amended order, every registered tea manufacturer is required to sell not less than 50 per cent of total tea manufactured in a calendar year through licensed public auction organisers in India. The Registering Authority retains the power to revise this percentage with prior approval from the Central Government.

To assess adherence to the rule, Tea Board conducted a detailed analysis of auction participation by registered manufacturers covering two calendar years — 2024 and the period up to August 2025.

Manufacturers found to have offered no tea for sale through auctions during this period were issued show-cause notices for violating Clause 21(1). Personal hearings were subsequently held for those who either failed to respond or submitted replies the Board found unsatisfactory.

A notable finding to emerge from the personal hearings was that several manufacturers said they were simply unaware of the 50 per cent auction participation requirement.

In response, Tea Board decided to reissue the directive as a fresh circular — addressed to all tea manufacturers across India — to ensure there could be no further ambiguity about the rule or its enforcement.

The Board has forwarded the circular to all Tea Producer Associations across India, asking them to bring the directive to the attention of every one of their members without delay.

The circular makes the Board's position clear: going forward, failure to comply with the auction participation requirement will be viewed seriously by the Registering Authority.

Also read: Indian and Assam Tea Production Fall in 2024: Tea Board of India