Tea trade bodies push for minimum sustainable price and 100% auction of teas
minimum sustainable price for teas along with a 100 per cent auction of teas.
An interactive interface with small tea growers was held today in Kolkata. The event aimed to bring together stakeholders from the organized tea sector and small tea growers from North and South India, to discuss challenges, opportunities, and sustainable growth strategies.
During the meeting, besides the persistent challenges of climate change and the presence of intermediaries, the key challenges faced by the small tea rowers were deliberated covering the issues of lack of bargaining power with the small tea growers, given the perishable nature of green leaf.
It was also discussed that the existing price distortion as the present Price Sharing Formula (PSF) for determining the Minimum Benchmark Price (MBP) for green leaf is not compensated for the cost of production.
The representatives of Small Tea Growers’ Associations across North and South India univocally stated that the current PSF is not compensating the cost of production and the need for a fair and transparent pricing mechanism that takes into account the cost of production and allows for a reasonable margin is the urgent need of the hour.
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