Why in NEWS
The Tea Board of India has amended the Bharat Auction model rules for pan-India tea auctions, based on recommendations from the Ramaseshan Committee. The move aims to ensure better price discovery and protect the interests of tea sellers in the country.
Key Concepts Simplified
| Term | Meaning |
|---|---|
| Bharat Auction Model | A pan-India electronic tea auction system where buyers place bids before the lots go live |
| Ramaseshan Committee | A panel formed to review and improve price discovery mechanisms and tea auction structure |
| Price Discovery | The process of determining the market price of tea through open and transparent bidding |
| Tea Board of India | A statutory body under the Tea Act, 1953 responsible for the regulation and promotion of the tea industry in India |
About Tea Board of India
| Feature | Details |
|---|---|
| Established | 1953 |
| Legal Basis | Tea Act, 1953 |
| Headquarters | Kolkata |
| Jurisdiction | Regulates tea producers, manufacturers, brokers, exporters, auctioneers, warehouse keepers |
| Functions | Market surveys, price monitoring, consumer analysis, data support to exporters/importers |
| Global Offices | London, Moscow, Dubai (for trade promotion) |
About Bharat Auction Model
| Feature | Description |
|---|---|
| Type | Electronic auction platform |
| Scope | Pan-India, applicable to all tea-producing regions |
| Unique Feature | Bids are submitted in advance of lots going live, improving transparency |
| Objective | Improve efficiency, ensure fair price discovery, and protect seller interests |
Ramaseshan Committee Recommendations
| Focus Area | Purpose |
|---|---|
| Auction Reforms | Improve transparency and reduce volatility in tea pricing |
| Price Discovery | Shift towards more dynamic bidding mechanisms to reflect true market demand |
| Stakeholder Protection | Enhance seller protection and ensure fair participation across auction centers |
Key Agricultural Boards in India
| Board | Act/Status | Headquarters |
|---|---|---|
| Tea Board | Tea Act, 1953 | Kolkata |
| Coffee Board | Coffee Act, 1942 | Bangalore |
| Rubber Board | Rubber Act, 1947 | Kottayam, Kerala |
| Spices Board | Spices Board Act, 1986 | Kochi, Kerala |
| Tobacco Board | Tobacco Board Act, 1975 | Guntur, Andhra Pradesh |
| National Turmeric Board | Not a statutory body | Nizamabad, Telangana |
| Makhana Board | Proposed | Bihar |
In a Nutshell – Memory Code: “TEA-PRO”
T – Transparent bidding via Bharat Auction
E – Electronic platform for all tea regions
A – Auction reforms via Ramaseshan Committee
P – Protection of seller interests
R – Regulatory role of Tea Board
O – Offices in India and abroad for tea promotion
Prelims Practice Questions
- The Bharat Auction model is associated with:
A. Agricultural produce marketing
B. Online sale of fertilizers
C. Pan-India tea auction system
D. Export licensing of spices - The Tea Board of India was established under which Act?
A. Tea Marketing and Regulation Act, 1962
B. Tea Act, 1953
C. Commodity Boards Act, 1951
D. Essential Commodities Act, 1955 - Which of the following is NOT a statutory agricultural board in India?
A. Tobacco Board
B. Rubber Board
C. National Turmeric Board
D. Spices Board
Answer Key with Explanation
| Qn | Answer | Explanation |
|---|---|---|
| 1 | C | Bharat Auction is an electronic platform for tea auctions across India |
| 2 | B | Tea Board was created under the Tea Act, 1953 |
| 3 | C | National Turmeric Board is not a statutory body |
