Industry

India's tea-auctioning system under scrutiny

Up for review
Up for review

A parliamentary panel has urged the Commerce Ministry and the Tea Board to review India's current tea auction system, which is said to prevent maximizing prices for farmers. The standard auction system presently in place makes it hard for farmers to control prices once the crop is offered at the auction, whereas the newly introduced e-auction platform remains inaccessible to those without an Internet connection. The panel is also concerned by a steady decrease in India's annual output from 986 million kilograms in 2007 to 966 million kg in 2010, while China's production rose by roughly 30% in the same period. Finally, the committee will look into the issue of aging bushes, with 37% of tea bushes being over 50 years old.

visit website