Tea bodies urge centre to fix MSP for green leaves; industry divided over proposal

Dibrugarh, Nov 7: A joint appeal made by India’s leading associations of tea planters and growers to Prime Minister Narendra Modi to notify a minimum sustainable price (MSP) for green tea leaves has evoked mixed reactions from the tea industry.

The appeal, issued jointly by the Indian Tea Association (ITA), Tea Association of India (TAI), Assam Tea Planters Association (ATPA), and grower bodies including the Confederation of Indian Small Tea Growers Association (CISTA), All Assam Small Tea Growers Association (AASTGA), and All Bodoland Small Tea Growers Association (ABSTGA) through various media outlets, called for an MSP to safeguard the interests of tea growers. The advertisement accompanying the appeal clarified that no additional government support would be required once the MSP is declared.

While several stakeholders welcomed the proposal, others questioned its feasibility and intent. Chand Kumar Gohain, chairman of the Assam Bought Leaf Tea Manufacturers Association (ABLTMA), appreciated the initiative but expressed doubts about its “sincerity and practicality”.

Gohain pointed out that several factories belonging to members of the producer associations like ITA, TAI and ATPA that issued the appeal have been purchasing green leaves at Rs 12-16 per kg over the past two months. Gautam Beria, secretary of ABLTMA, argued that if these associations are serious about their appeal, they should first ensure payment of Rs 35 per kg for leaves procured from small growers over the last three months.

“This payment would demonstrate the genuineness of their intentions,” said Beria, adding that failure to do so would expose the appeal as mere “jumlabaazi” ahead of the upcoming Assembly elections in the State.

Echoing a pragmatic approach, Deven Singh, chairman of the Federation of Indian Tea Manufacturers Association (FITMA) and advisor to ABLTMA, emphasised the need for collective industry efforts to boost domestic demand.

“Instead of relying solely on pricing interventions, associations should work with Tea Board to raise per capita tea consumption from the current 860 grams to at least 1,000 grams besides increasing domestic demand and focusing on quality compliance,” Singh said.

He further suggested that any proposed MSP such as the Rs 35 per kg benchmark should be linked to the quality of green leaves supplied. Singh warned that such pricing would translate to a minimum finished tea price of around Rs 225 per kg, whereas current market prices for bulk teas range between Rs 120 and Rs 140 per kg.

“Floating an idea without addressing the demand side will not yield tangible results and could create further disruption,” he cautioned. Singh urged all associations to engage in strategic dialogue on the industry’s future and collaborate with leading buyers, including Hindustan Unilever Limited, Tata Consumer Products Limited, Wagh Bakri, and FAITTA.

By

Staff Correspondent