New National Tea Bill Targets Domestic Auction and Compulsory Value Addition

Uganda’s Parliament has granted permission for the introduction of the National Tea Bill, a proposed law designed to revolutionize the country’s tea industry. Spearheaded by Igara County West MP, Hon. Cohen Amanya, the legislation aims to enforce compulsory value addition for all tea exports and establish a dedicated domestic tea auction system.

The initiative addresses long-standing vulnerabilities in the agricultural sub-sector. Currently, approximately 90 percent of Uganda’s tea is sold through the Mombasa Tea Auction, exposing local producers to heavy market dependency and volatile prices. Furthermore, poor-quality leaves and inadequate processing have historically depressed earnings, with industry figures showing earnings falling well below potential.

To combat this, the proposed Bill makes value addition mandatory. Exporters and buyers will be required to process, blend, package, or grade tea locally and obtain a compliance certificate before shipping it abroad. Non-compliance could result in severe penalties, including license suspension, cargo seizure, and heavy fines. Additionally, the creation of a domestic auction system is expected to improve marketing channels and boost revenues for local farmers.

Lawmakers from across the political divide supported the motion, emphasizing that proper regulation is vital for safeguarding farmers and improving overall crop quality. The Ministry of Agriculture, Animal Industry and Fisheries will oversee sector regulations, while district authorities will supervise on-farm practices, pest control, and handling standards.

Read the full report on the Parliament of Uganda.