HT Digital
GUWAHATI, Aug 16: A book entitled ‘Minimum Floor Price for Tea’, which delves into the challenges and opportunities present in the tea industry, was officially released in Guwahati, a press release said on Thursday.
During the book launch, Chandra Kumar Dhanuka, the author and Chairman of the Dhunseri Group, emphasized the necessity of establishing a minimum floor price for tea to safeguard the future of tea plantations.
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The key points raised in his address included the fact that small tea growers represent approximately 52% of the market share, producing around 702 million kg of tea, while large tea growers account for 48% of the market share with a production of about 648 million kg, making them the primary stakeholders in the industry.
Meanwhile, the tea sector is currently experiencing an oversupply, a situation projected to continue until at least 2030, as indicated by an FAO report.
He also emphasized that despite the Modi government’s commitment to ensuring a 50% margin on the total cost of agricultural produce during its initial term, tea farmers are finding it difficult to meet their Cost of Production (COP). In contrast, other farmers in India benefit from the protection of the Minimum Support Price (MSP).
The author highlighted that a floor price mechanism for tea, in contrast to MSP, would not necessitate government involvement in purchasing or funding transactions.
Additionally, this strategy would provide support to tea producers without imposing financial burdens on either the state or central government.
He further emphasized that the sector is grappling with challenges stemming from low prices and severe pest infestations, resulting in substantial losses for both small and large producers.
