HAPPENING -- 9:

STORM IN THE TEA CUP:

FACTORY OWNERS WORRIED; GROWERS AGITATED

 

By P S SUNDAR 

 

The nearly one lakh members of the tea small grower families in The Nilgiris are now a worried lot as the factories (popularly called bought-leaf factories) to which they supply their green leaf have expressed their inability to pay the price fixed by Tea Board.

 

Factory owners are frustrated that the price they get for their teas at the public auctions are inadequate to cover their cost of production.   They are also concerned that substantial volumes of the teas are remaining unsold at the auctions.

 

The Nilgiris Bought Leaf Tea manufacturers’ Association has informed the Joint Secretary of plantations in Union Commerce Ministry Diwakar Nath Misra that the average price at the auctions of Coonoor Tea Trade Association has crashed to ₹ 78 per kg from ₹ 122 this time last year.

 

“It was highlighted that in the prevailing circumstances, unless the tea sells above ₹ 90 per kg at the auctions, we would not able to cover the cost of production as per the price sharing formula fixed by the Tea Board”, Association President Dhananjayan said.

 

The Association conducted an all-members emergency meeting and decided to fix the basic price at the auction at ₹ 85 per kg, he said.

 

However, this seriously affected the sale at this week’s auctions since teas worth a whopping ₹ 16.27 crore remained unsold as there were no takers for as much as 70 per cent of the 7.58 lakh kg which was offered. 

 

As factory owners sent the message that they cannot pay the small growers the price fixed by Tea Board unless they get this average price, some small growers hoisted black flag on their houses and destroyed their green leaf without supplying to the factories.   

 

When contacted Tea Board’s Executive Director for South Zone, Dr M Muthukumar IAS told me, “I have taken over the office only now.  I am already examining the issue to find an amicable solution after consulting the stakeholders”.

 

Among the 30 per cent tea which was sold this week, the average price was ₹ 92.92 per kg and Homedale Estate tea, auctioned by Global Tea Auctioneers Pvt Ltd., topped when Badhusha Tea Company bought it for a significant price of ₹ 314 per kg.   This was the only tea which crossed ₹ 300/kg level.

(Response can also be sent to: pssundar.coonoor@gmail.com)