Tea production costs in India are rising much faster than the price tea fetches, squeezing producers and above all small growers. A Tea Board committee has recommended a minimum sustainable price for tea, and on Tuesday five major tea industry bodies called for it to be implemented quickly, Kolkata's Ei Samay reports.
By the bodies' reckoning, tea prices have grown at a compound rate of just 2 to 3 percent a year in recent years, while inputs and other costs have risen by about 10 to 14 percent a year. Sixty percent of production costs go on workers' wages, provident fund and gratuity, and the central government's new wage code is expected to push wages higher still.
C K Dhanuka, former chairman of the Indian Tea Association and head of Dhanseri Industries, said the industry welcomes the report the Tea Board has submitted to the centre and hopes the Commerce Ministry will reach the right decision after examining it.
Small tea growers stand to gain most. Bijoy Gopal Chakraborty, president of CISTA, which represents them, said a minimum sustainable price would give small growers steadier and more profitable prices and help protect their livelihoods.
Experts expect, however, that a minimum price set by the centre could push up the price of tea for consumers. The report is by Ei Samay's Sudipta Banerjee and Saheli Biswas.
Photo: Shahnoor Habib Munmun / Wikimedia Commons (CC BY 3.0)
Source: Ei Samay
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