Guwahati, April 17: Four leading tea producers’ associations from Assam and West Bengal have jointly appealed to Prime Minister Narendra Modi to withdraw or amend rules mandating that at least 50 per cent of annual tea production be sold through public auctions.

In a letter made public on Friday, the Assam Bought Leaf Tea Manufacturers Association, North Eastern Tea Association, Bharatiya Cha Parishad, and North Bengal Tea Producers’ Welfare Association argued that compulsory auction sales place producers at a disadvantage due to higher transaction costs and longer selling cycles compared to ex-factory sales. Together, the groups claim to represent nearly 60 per cent of north India’s tea production, which accounts for about 1,120 million kilograms out of the country’s total annual output of 1,350 million kilograms.

The associations urged the Prime Minister to grant suitable relaxation or exemptions under the Tea (Marketing) Control Second Amendment Order, 2003. They noted that while expert committees of the Tea Board have recommended efficiency improvements in the auction system, none have supported mandatory auction sales.

The associations further contended that compulsory auctioning infringes upon producers’ fundamental right to carry on trade and business and is inconsistent with the government’s policy of promoting ease of doing business. They stressed that producers should have the flexibility to choose the most efficient mode of sale in line with market dynamics.

The current mandate, introduced by the Ministry of Commerce and Industry in 2015, requires registered tea manufacturers to sell not less than 50 per cent of their annual production through public auctions, with the percentage subject to revision by the Centre.