The Tea Board India has asked all producers to sell 50 percent through public auctions, prompting companies to urge the supervising body of the industry to keep exports out of the purview of the order. In a recent circular on Tea Marketing Control Order (TMCO), 2003, the board said routing 50 percent of the produce through auctions will bring stability in the price realisation process. It also said if any producer does not comply with the order, strict action will follow.

Reacting to the order, Rudra Chatterjee, managing director of Luxmi Tea, which manufactures premium Darjeeling tea like Makaibari, said it should not be made applicable for exports and value-added tea (packet tea). Whole-time Director of McLeod Russel, Azam Monem, said the directive has been in existence and organised producers have been adhering to it.

"The genesis of the Tea Board order is to bring small tea growers (STG) in its fold. STGs account for 50 percent of the total production in the country," he said.

Monem also said the directive should not be made applicable to exports and packet tea, and this aspect should be examined by the Board.