Assam: Tea producers want minimum sustainable price for tea

Staff Reporter

GUWAHATI: In synergy with Prime Minister Narendra Modi's vision, various tea producers' organisations have advocated for a minimum sustainable price (MSP) for their produce.

The tea producers' bodies think 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 percent auction of made teas should also be introduced, they said.

The tea-producing organisations said that tea farmers face challenges due to climate change and associated volatility. Therefore, tea farmers deserve to be protected by way of a sustainable price, in line with the Prime Minister's vision.

The industry stands committed to promoting the production of the best quality teas. To sustain quality and remain compliant, price realisation needs to compensate for the cost of production and allow for a reasonable margin.

It is pertinent that the small tea growers are also challenged by a lack of bargaining power given the perishable nature of the green leaf. The tea producers' bodies from both north and south India unequivocally stated that the current Price Sharing Formula (PSF) is not compensating the cost of production and, therefore, a fair and transparent pricing mechanism is the urgent need of the hour.

Also Read: Assam: BLFs of Lakhimpur fetched the highest tea price in January 2025

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