Small tea growers ask for reshaping of directorate’s activity pattern

SILIGURI: Though it came to existence after long cry, it could not fulfil the aspiration. This seems to be the condition of Small Growers Development Directorate(SGDD) of India Tea Board that was formed following long demand of the small tea growers to dedicatedly look after this corner of plantation sector that contributes around 35% to national tea production.

“Contrary to what was expected, SGDD could not yet ensure any properly effective mechanism for the STGs to enjoy uncompelled or rational price for their produce. Activity sector of the directorate needs a assessment and reshaping,” said Mr. Bijoy Gopal Chakroborty, President CISTA.

Following long pending demand and lot of brain storming sessions, SGDD was formed by the Ministry of Commerce & Industry, Government of India in 2011 to work under Indian Tea Board ( ITB). One of the most important issues on which this directorate is supposed to work is the price sharing tussle between STGs and bought leaf factories(BLF). STGs, without own factories, are dependent on BLFs for processing of their raw materials.

As per present system, ITB announces a monthly district wise benchmark price of green leaf for the BLFs to follow while paying to the STGs. This benchmark price structure is amended every month based upon the price realization of BLFs from market.

“But, in practice, BLFs are fixing price arbitrarily and taking advantage of supply demand theory without caring benchmark pricing system set by the SGDD. Financially weaker STGs are always at deep corner because of highly perishable nature of their produce and thus compelled to accept BLF’s command. SGDD has so far failed to safeguard STGs interest,” said Chakroborty.

But while showing the picture from other side, Mr. P. Seal, a senior BLF owner said, “STGs are always our partner in the whole trade. To ensure their share of that, there are pricing mechanisms and system of monitoring by the authority. We strictly adhere to that. Actual price realization as per that system may go down bellow expectation sometime, but the BLFs should not be held responsible for that.”

At this juncture, “We have requested the Plantation secretary of Ministry of Commerce & Industry, GoI to intervene and reshape the system to make the situation rational and smooth for STGs.”

At present India hosts over 2 lakh STGs contributing around 35% to the national tea output.