'TMCO amendment of 50 pc sale through auction not needed'

Tea producers have opposed an order that require every registered manufacturer to sell not less than 50 per cent of his tea through public auction centres.
"In a liberalised globalised economy we feel there is no need for such legislation," North East Tea Association (NETA) chairman Bidyanand Barkakoty said at the General Meeting of the Association at Kaziranga today.
He pointed out the recent amendment to the Tea (Marketing) Control Order (TMCO), 2003 requiring every registered tea manufacturer to sell not less than 50 per cent of his manufactured tea through public auction centres "is not necessary".
"We also fail to understand that if manufacturers (sellers) are compelled to sell 50 per cent of their produce through auction centres, then why all buyers registered under the Tea Board are not compelled to purchase 50 per cent of their total purchase from the auction centres?" he asked.

There are more than 4,000 buyers registered with the Tea Board, but only a handful of them were registered with the tea auction centres.
The number and profile of buyers in auction centres was limited and thereby usually tea produced by Bought Leaf Factories fetch much less price in auction centres compared to ex-factory sales, he pointed out.

"We fear the unsold percentage may go up substantially because of more arrival of tea due to the new TMCO amendment," he said.
The Union Ministry of Commerce and Industry had amended some clauses of TMCO, 2003 on October 1 wherein it was stated, "Every registered tea manufacturer shall, on and from the date of commencement of this notification, sell not less than 50 per cent of the total tea manufactured in a calendar year through public tea auctions in India, held under the control or auspices of organisers of tea auction licensed to do so under the provisions of this order."

Barkakoty further said growers often complain about transparency in price realisation by manufacturers and difficulty in implementation of price sharing formula.
It is mandatory for every manufacturer to submit E-Forms every month through online mode to the Tea Board.
"We request the Tea Board to put E-Forms of every manufacturer in public domain so that it is easily accessible to the growers. This will ensure complete transparency and help in implementation of price sharing formula," Barkakoty added.