Book Titled 'Minimum Floor Price' for Tea Industry Released in Guwahati

A book titled “Minimum Floor Price”, dedicated to exploring the challenges and opportunities within the tea industry was officially released in Guwahati.

The tea industry in India, which supports the livelihoods of over three million workers, has been advocating for measures to ensure its sustainability and to mitigate the impact of natural uncertainties.

At the book launch, Sri Chandra Kumar Dhanuka, the author and Chairman of the Dhunseri Group, discussed the importance of implementing a minimum floor price for tea to secure the future of tea plantations.

Key points highlighted during his speech are:

* Small tea growers, who account for about 52% of the market share and produce approximately 702 million kg of tea, and large tea growers, holding 48% of the market share with a production of around 648 million kg, are the primary stakeholders in the industry.

* The tea industry is plagued by an oversupply, with the situation expected to persist until at least 2030, according to an FAO report.

* Despite the Modi government's vision of ensuring a 50% margin on the total cost of agricultural produce during its first term, tea farmers are struggling to achieve their Cost of Production (COP). Meanwhile, other farmers in India benefit from the Minimum Support Price (MSP) protection.

* A floor price mechanism for tea, unlike MSP, would not require government intervention in purchasing or funding transactions. This approach would support tea producers without financial strain on the state or central government.

* The sector is facing challenges from low prices and severe pest infestations, leading to significant losses for both small and large producers. Without intervention, many small farmers will struggle to maintain a minimum standard of living.

Prominent figures in the tea industry, Chairman of ITA Hemant Bangur, TAI President Sandeep Singhania, Sri Bijoy Gopal Chakraborty, President of the Confederation of Small Tea Growers Association, Rajen Bora, President of All Assam Small Tea Growers Association, Sri Rajeeb Gohain, Board member of Tea Board of India, Sri Narayan Lahon, President, Small Tea Growers Council of Assam, and Rabi Ram Boro, President, All Bodoland Small Tea growers Association also spoke at the event, highlighting the urgent need for reform in the tea sector.

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