Amendment to the Tea marketing control order 2003

## Report on the Tea Marketing Control Second Amendment Order, 2021 **1. Executive Summary:** This report analyzes the Tea Marketing Control Second Amendment Order, 2021, which amends the Tea Marketing Control Order, 2003. The core purpose of this amendment, based on the provided text, is to modify the method for monitoring the average green leaf price paid to small tea growers. The key change involves substituting a clause regarding the formula used to determine this price, tying it directly to the average auction price of tea manufactured by Bought leaf factories in the same district. This report details the specific changes, their potential impact, and relevant stakeholders. **2. Introduction:** This report aims to provide a comprehensive overview of the Tea Marketing Control Second Amendment Order, 2021, based solely on the information provided within the official gazette notification. It outlines the changes introduced by this amendment and its likely implications for stakeholders in the tea industry. **3. Policy Overview:** * **Original Policy Being Amended:** Tea Marketing Control Order, 2003 * **Core Objective(s):** The original Tea Marketing Control Order, 2003, as inferred from the amendment, likely aims to regulate and control the marketing of tea. This specific amendment focuses on ensuring fair pricing for small tea growers by linking their green leaf prices to auction prices. **4. Background and Rationale:** As an amendment, the Tea Marketing Control Second Amendment Order, 2021, suggests a need to refine aspects of the original 2003 order. The specific amendment targets the mechanism for determining the price of green leaf paid to small tea growers. The likely reason for this amendment is to provide a more transparent and equitable pricing system. Linking the green leaf price to the average auction price of tea manufactured by Bought leaf factories presumably aims to reflect prevailing market conditions more accurately and ensure that small tea growers receive a fair share of the revenue. **5. Key Provisions / Changes:** This amendment focuses specifically on paragraph 30A, subparagraph 5, clause a of the Tea Marketing Control Order, 2003. * **Specific Part of Original Policy Being Changed:** Paragraph 30A, subparagraph 5, clause a of the Tea Marketing Control Order, 2003. This clause previously defined how to monitor the average green leaf price payable to small tea growers. * **New Rule/Provision:** The original clause 'a' is substituted with a new clause which states that monitoring should be based on "the average auction price of tea manufactured by the Bought leaf factories of such district for the same month by applying the price sharing formula specified under subparagraph 2 of paragraph 30." * **Difference/Effect of the Change:** The change alters the *basis* for determining the average green leaf price. Previously, the method for monitoring green leaf prices was different from what is now prescribed. The new method now explicitly connects the green leaf price to the average auction price achieved by Bought leaf factories in the same district and utilizes a price-sharing formula already outlined in the original order (subparagraph 2 of paragraph 30). This should make the green leaf price more responsive to market fluctuations reflected in auction prices. **6. Target Audience and Stakeholders:** Based on the text, the primary target audience and stakeholders are: * **Small Tea Growers:** As the amendment directly impacts the method of calculating the price they receive for their green leaf. * **Bought Leaf Factories:** Their auction prices are now directly used to determine the price paid to small tea growers. * **The Tea Board/Regulatory Bodies:** Responsible for monitoring and enforcing the Tea Marketing Control Order. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The Ministry of Commerce and Industry, specifically the Department of Commerce, is responsible for enacting this amendment. The Tea Board (though not explicitly mentioned) is likely the body responsible for implementing and monitoring the Tea Marketing Control Order, including this amendment. * **Timelines or Procedures:** The amendment came into force on the date of its publication in the Official Gazette, which was December 17, 2021. The procedure for monitoring green leaf prices now involves tracking the average auction prices of Bought leaf factories and applying the existing price-sharing formula outlined in paragraph 30. **8. Expected Outcomes / Impact of Changes:** The intended outcome of this amendment is likely to: * **Provide a fairer and more transparent pricing mechanism for small tea growers.** By linking green leaf prices to auction prices, the amendment aims to ensure that growers receive a price that reflects the market value of their product. * **Reduce price discrepancies and disputes.** A formula-based approach tied to market prices could minimize arbitrary pricing by Bought leaf factories. * **Improve the overall efficiency of the tea marketing system.** By aligning green leaf prices with market signals, the amendment could contribute to a more responsive and efficient market. **9. Conclusion:** The Tea Marketing Control Second Amendment Order, 2021, represents a targeted adjustment to the Tea Marketing Control Order, 2003. Its significance lies in its revision of the method for determining the price of green leaf paid to small tea growers, directly linking it to the auction prices achieved by Bought leaf factories. This change aims to create a more equitable, transparent, and market-responsive pricing mechanism, ultimately benefiting small tea growers and contributing to the stability of the tea industry.

Key Entities Referenced