Tripura is set to operationalise its first tea auction centre at Gurkhabasti in West Tripura district by April. The foundation stone was laid in March 2024 by Chief Minister. The centre is being developed under the supervision of the Tripura Tea Development Corporation.

Why is it Important?

At present, India has seven tea auction centres, including major hubs at Guwahati and Kolkata. Tripura’s tea growers currently send their produce to these centres, increasing transport costs and reducing profit margins.

The new centre will:

• Reduce transportation expenses for planters.
  
• Improve price realisation for Tripura tea.
  
• Provide a ₹4 per kilogram transport subsidy to buyers initially.
  
• Strengthen local value addition and market access.
  

Economic Significance

• Tripura has 54 operational tea estates.
  
• Annual production is around 90 lakh kilograms.
  
• Over 30,000 people directly depend on the tea sector.
  
• Once operational, Tripura will be treated as a tea-consuming State, enabling collection of Goods and Services Tax on local transactions.
  

Exam Hook

With reference to Tea Auction Centres in India, consider the following statements:

1. Tea auction centres help in price discovery through competitive bidding.
   
2. Establishing a tea auction centre can improve local revenue collection through Goods and Services Tax.
   
3. Tripura was previously hosting one of India’s tea auction centres.
   

Which of the statements given above is/are correct?

(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 only
(d) 1, 2 and 3

Answer: (a) 1 and 2 only

One-line wrap: Tripura’s first tea auction centre promises to empower local planters, enhance revenue, and strengthen the State’s tea economy.

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