Small tea growers demand new price sharing formula

SILIGURI: Confederation of Indian Small Tea Growers’ Association( CISTA), the apex body of Indian small tea growers organizations, is going to strengthen its demand for early implementation of a ‘realistic’ and ‘scientific’ price sharing formula.

The decision to press hard on this demand has been taken in the just concluded seventh Annual General Body Meeting of CISTA. “As decided in CISTA platform, a price sharing formula, based on the directions of the Madras High court, should be developed immediately and it should be implemented in a speedy and transparent manner,” said Mr. Bijoy Gopal Chakroborty, secretary CISTA.

There is a price sharing formula since 2004 to share the final market realization of made tea between green leaf growers with small plantations and the factory owners. Though not same throughout the whole country, on an average around 60% share for the growers and 40% for factories remained the formulation.

“We have never rejected this formula. But its improper and inadequate implementation has made it ineffective,” said Mr. Chakroborty.

However, following litigations over the old formulation, Chennai High Court passed directive and subsequently Centre asked the Tea Board to engage the services of Institute of Cost and Works Accountants of India to study the situation in one of the major Indian tea producing areas, Nilgiri region. And the formula was restructured. But that too got questioned and the High Court again directed the Union Government in October 2012 to fix a ‘realistic’ price ‘uninfluenced by artificial market forces.’

“We want immediate fixation of this realistic formula with a minimum price protection component built in,” said Mr. Chakroborty.

Around 65,000 small tea growers, despite producing near 30% of the national annual yield in India, remains under many constrains pertaining to their land, finance, workforce Government policy implementations etc. accepted even senior tea administrators.

However, according to Ms V Yadav, Director, Ministry of Commerce and Industry, Government of India, the long awaited small tea grower development scheme under the 12th Plan period under the plantation development scheme are ready to be rolled out any day.