Green tea leaf pricing: Tea Board to issue notices to bought leaf factories

Staff Reporter

GUWAHATI: The Tea Board of India (TBI) has decided to issue notices to the bought tea leaf factories that have not been paying green leaf prices to small growers as per the guidelines of the Ministry of Commerce and Industries.

The Tea Board of India held a meeting with all stakeholders today at its regional office in Guwahati. The meeting observed that ‘certain tea factories operating within the Northeast Zone jurisdiction have failed to comply with the prescribed average green leaf price (AGLP) for the districts during the months of August and September 2025, resulting in payment of green leaf prices below the mandated level to small tea growers.’  

According to sources, the TBI decided to issue notices to such bought leaf factories that did not comply with the guidelines of the ministry in the payment of prices for green leaf to the small tea growers. The Board said that if the factories do not comply with the guidelines within the specified time, they will face suspension of their licences.

According to the Tea Board of India’s guidelines, “the statutory provisions, i.e., AGPL (Average Green Leaf Prices) payable to small growers, on a district-wise basis, shall be determined by taking into consideration the average auction price of tea sold during the corresponding month. It is obligatory for all registered tea manufacturers procuring green tea leaf from small tea growers. Non-adherence to these guidelines constitutes a violation under the Tea Marketing Control Order (TMCO) and may attract stringent measures by the authority concerned.”

The ministry directed all tea factories to (i) immediately pay the differential amount corresponding to the AGLP of the relevant districts to the green leaf suppliers/small tea growers concerned, (ii) submit documentary evidence of such payments to the nearest field officers of their jurisdictions for verification and record purposes, and (iii) ensure adherence to the AGLP for all future procurement without exception.

Non-compliance will compel the ministry to initiate appropriate action as the provisionsion of TMCO.

This development has proved beyond doubt that the small tea growers of the state decrying the bought leaf factories not paying them their remunerative prices is not for nothing.

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