The president of the Tea Association of India (TAI) Sandeep Singhania has said the tea industry is currently facing unprecedented challenges and is on the verge of collapse.
PHOTO: Representational Image - Getty Images
The president of the Tea Association of India (TAI) Sandeep Singhania has said the tea industry is currently facing unprecedented challenges and is on the verge of collapse.
“The situation is dire and urgent action is needed to revitalize the industry. As producers, we recognise the necessity to explore innovative approaches to address these challenges,” Mr Singhania added.
In response to a recent central government’s order, the TAI president, Mr Singhania also mentioned, the TAI has advocated one such approach for some time, which is the adoption of a single sales channel that is public auction to ensure fair price discovery.
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According to him, the proposal for a hundred per cent auction commencing with only dust grades was put forward. Dust grades constitute approximately 20 per cent of the total production in north India. Therefore, transitioning to a 100 per cent dust auction represents a small yet significant step towards restructuring the existing system.
“The proposed 100 per cent dust auction signifies a bold move forward, and we encourage all shareholders to approach this trial with an open mind and a spirit of collaboration,” Mr Singhania said, adding, “We believe it is necessary to test innovative solutions with full support for one season and assess their effectiveness and potential impact.”
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