Kolkata: A 10-member committee constituted by the Tea Board of India has recommended the introduction of a minimum sustainable price (MSP) for tea to the Union ministry of commerce. Stakeholders of the Indian tea industry have been complaining about the widening gap between production costs and market realisations.
Welcoming the recommendation, the Indian Tea Association (ITA), Tea Association of India (TAI), United Planters Association of Southern India (UPASI), Confederation of Indian Small Tea Growers Associations (CISTA) and Federation of Indian Tea Manufacturers Association (FITMA) have emphasised the need for a sustainable pricing framework to secure remunerative returns for tea producers, protect the interests of small tea growers and ensure the long-term viability of the sector.
India produces approximately 1,350–1,400 million kg of tea annually, with small tea growers contributing nearly 55%. The average wage for tea garden workers in Assam is only Rs 280, while in Bengal it is Rs 250. Raha pointed out that over the years, tea prices have registered a marginal CAGR of approximately 2%–3%, as compared to an estimated CAGR of 10–14% in input costs. Dhunseri Group chairman CK Dhanuka, a former ITA chairman, said there was under-recovery of Rs 20-25 per kilogram in tea.
ITA secretary general Arijit Raha pointed out that without MSP, most gardens are incurring losses and defaulting in PF and gratuity. “The Tea Board’s proposal is based on cost of production. We hope the cost of production will be realised through MSP. This will also enable tea producers to pay higher wages,” he added.
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