Tea Industry's Call for Minimum Sustainable Price Sparks Diverse Reactions

Mixed Responses to Tea Growers' Appeal for MSP

Dibrugarh, Nov 7: A collaborative request from prominent tea planter and grower associations in India has reached Prime Minister Narendra Modi, urging the establishment of a minimum sustainable price (MSP) for green tea leaves. This initiative has generated varied reactions within the tea sector.

The joint appeal, made by the Indian Tea Association (ITA), Tea Association of India (TAI), Assam Tea Planters Association (ATPA), and several grower organizations, including the Confederation of Indian Small Tea Growers Association (CISTA), All Assam Small Tea Growers Association (AASTGA), and All Bodoland Small Tea Growers Association (ABSTGA), was disseminated through multiple media channels. The accompanying advertisement emphasized that no extra government assistance would be necessary once the MSP is set.

While some industry players welcomed the initiative, others raised concerns regarding its practicality and motives. Chand Kumar Gohain, chairman of the Assam Bought Leaf Tea Manufacturers Association (ABLTMA), acknowledged the proposal but expressed skepticism about its authenticity and feasibility.

Gohain noted that many factories associated with the producer groups that issued the appeal have been acquiring green leaves at prices ranging from Rs 12 to Rs 16 per kg over the last couple of months. Gautam Beria, secretary of ABLTMA, contended that if these associations are genuinely committed to their request, they should first ensure that small growers receive Rs 35 per kg for leaves purchased in the past three months.

“This payment would validate their intentions,” Beria remarked, warning that failing to do so would reveal the appeal as mere political posturing ahead of the upcoming Assembly elections in the State.

Deven Singh, chairman of the Federation of Indian Tea Manufacturers Association (FITMA) and advisor to ABLTMA, advocated for a collective industry approach to enhance domestic demand. He stated, “Rather than depending solely on pricing measures, associations should collaborate with the Tea Board to elevate per capita tea consumption from the current 860 grams to at least 1,000 grams, while also focusing on quality compliance.”

Singh further suggested that any proposed MSP, such as the Rs 35 per kg target, should be contingent on the quality of green leaves supplied. He cautioned that such pricing could lead to a minimum finished tea price of approximately Rs 225 per kg, while current market rates for bulk teas hover between Rs 120 and Rs 140 per kg.

“Proposing an idea without addressing demand will not produce effective outcomes and may lead to further disruptions,” he warned. Singh urged all associations to engage in strategic discussions regarding the industry's future and to collaborate with major buyers, including Hindustan Unilever Limited, Tata Consumer Products Limited, Wagh Bakri, and FAITTA.

By

Staff Correspondent