Book on Tea Industry ‘Minimum Floor Price’ released in Guwahati

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“Minimum Floor Price” a book dedicated to problems and prospects of the Tea industry was released in Guwahati.

The tea industry in India has been advocating measures to ensure its sustainability and to cushion against natural uncertainties that derail lives and livelihood of more than three million workers.

Speaking at the launch of the book, ‘Minimum Floor Price of Tea – The only way to make the tea plantation sustainable,’ its author Sri Chandra Kumar Dhanuka, chairman of the Dhunseri Group said the following:

  • The stakeholders in Tea are the small tea growers who hold around 52% of the market share, producing about 702 million kg of tea. Large tea growers holds about 48% of the market share, producing around 648 million kg of tea.
  • The tea buyers, sellers (merchants), brokers and transporters are only intermediaries
  • Stakeholders are suffering badly who are giving livelihood to around 3 million people whereas intermediaries are not even employing 5% of the same.
  • There are thousands of sellers but only around 10 main buyers who control the market.
  • There is over supply of Tea worldwide, which is expected to continue till at least 2030 as per FAO report.
  • During his first term, Sri Narendra Modi envisioned 50% of margin on total cost of agriculture produce, which is not being achieved in the current scenario. The Tea farmers are struggling to achieve their COP meanwhile other farmers across India are earning much better given the protection of MSP.
  • A Floor Price mechanism does not entail the Government buying any tea or funding any type of transaction, whereas, Minimum Support Price (MSP) is the minimum price at which the Government buys agricultural products from farmers. Hence no financial support from state or central government is required and the government also does not have to buy tea.
  • Tea sector is suffering badly from low prices and severe pest attacks because of which producers both small and big are incurring huge losses. The poor farmers will not be able to maintain a minimum standard of living.

Chairman of ITA Hemant Bangur, TAI President Sandeep Singhania, Sri Bijoy Gopal Chakraborty, President of the Confederation of Small Tea Growers Association, Rajen Bora, President of All Assam Small Tea Growers Association, Sri Rajeeb Gohain, Board member of Tea Board of India, Sri Narayan Lahon, President, Small Tea Growers Council of Assam, and Rabi Ram Boro, President, All Bodoland Small Tea growers Association also spoke at the occasion.

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