Tea trade bodies push for minimum sustainable price and 100% auction of teas

The major tea trade bodies in the country have decided for a 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.

After a protracted discussion, the meeting today unanimously resolved that to ensure the sustainability of the Indian tea industry a minimum sustainable price of made tea, indexed to the Cost of Production and quality, needs to be introduced immediately. To monitor and give effect to the same, 100% auction of made teas should also be introduced. Members unanimously expressed views in favour of this.