Advocating Sustainable Pricing: Securing the Future of India's Tea Industry

Tea growers in India are urging for a minimum sustainable price to ensure industry viability. The Indian Tea Association highlights challenges like climate change and underscores the need for pricing that covers production costs, ensuring quality and fair margins, especially for small producers lacking bargaining power.

Tea growers across India are increasingly calling for implementing a minimum sustainable price for their produce, crucial for ensuring the viability of an industry that employs millions. A statement by the Indian Tea Association (ITA) highlighted the consensus among both large and small producers on this pressing need.

The ITA emphasized that tea cultivation, largely an agricultural endeavor, faces numerous challenges such as climate change. Despite these obstacles, the industry remains committed to producing top-quality teas compliant with all established norms. To achieve this, price realization must not only cover production costs but also provide a reasonable profit margin.

The ITA has pointed out that small tea growers, in particular, struggle with a lack of bargaining power under the current price-sharing formula, which inadequately compensates for production costs. They advocate for using the organized sector's production cost as a benchmark to ensure fair margins for all growers.

(With inputs from agencies.)