Advocating for Minimum Floor Price: A Lifeline for India's Tea Industry

A leading tea planter, Chandra Kumar Dhanuka, has suggested introducing a minimum floor price for tea to sustain India's tea industry. He argues this measure would benefit all stakeholders. The proposal emphasizes the inclusion of small tea growers and excludes intermediaries. This could ensure fair returns for growers and align tea pricing with other agricultural products.

In a bid to stabilize the tea industry in India, Chandra Kumar Dhanuka, chairman of Dhunseri Group, has put forth a compelling argument for instituting a minimum floor price for tea. Speaking at the launch of his book 'Minimum Floor Price for Tea – The Only Way To Make Tea Plantations Sustainable,' he emphasized the critical need for this pricing strategy to benefit all stakeholders, including producers, buyers, and the government.

Highlighting data from 2013-14 to 2022-23, Dhanuka drew attention to the disparity between tea prices, which rose by 33.8%, and Minimum Support Price (MSP) items like jowar, paddy, and wheat, which saw significantly higher hikes. This discrepancy, he argued, necessitates a floor price similar to MSP to ensure a level playing field for tea alongside other agricultural products.

Bijoy Gopal Chakraborty, president of the Confederation of Small Tea Growers Association, echoed Dhanuka's sentiments, advocating for tea to be included in the agriculture sector to allow growers to benefit from government schemes. Both leaders stressed that the floor price is crucial for providing fair returns to small tea growers, who currently face cost-production mismatches.

(With inputs from agencies.)