COIMBATORE: Reeling from decades of low prices, tea growers in the Nilgiris have renewed their long-standing demand to fix a minimum support price (MSP) for green tea leaves, as the ongoing crisis is pushing thousands of farming families to the brink.
Small tea growers say prices have been steadily declining since the 1980s due to multiple factors, leaving them unable to meet even basic household expenses. The situation, they argue, has become unsustainable for small and marginal farmers who form the backbone of tea cultivation in the hill district.
“Our primary demand is the fixation of an MSP of Rs 40 per kg for green tea leaves, in line with the recommendations of the Dr Swaminathan Committee and keeping in view the current economic conditions,” said JB Subramanian, founder president of the Small and Tiny Tea Growers Association. He pointed out that the cost of producing one kilogram of green tea leaves exceeds Rs 25, while farmers are currently paid only Rs 12 to Rs 15 per kg.
Following a dip in production, the cost of green tea leaves has risen from Rs 15 to Rs 19 per kg, which is a reasonable price received by growers. However, farmers caution that the increase is short-lived and prices are expected to fall again from next month, once normal yields resume.
Although the Central government extends certain subsidies to small tea growers, farmers say the assistance is far from adequate. Around 65,000 families in the Nilgiris depend entirely on tea cultivation for their livelihood, making price volatility a matter of survival rather than profit.
The issue, according to growers, has repeatedly been raised with union ministers during the last assembly and parliamentary elections. “At the time of polls, we were assured a permanent solution, and the issue even found a place in the poll manifesto. Yet, the core problem remains unresolved,” Subramanian said.
Growers have continued to submit representations to the centre, seeking a long-term policy intervention. At present, green tea leaves harvested by farmers are sold to about 160 private tea leaf factories, including 16 industrial cooperative tea factories run by the State government. With production costs rising and market prices stagnating, tea growers warn that unless an MSP is fixed soon, the future of small-scale tea cultivation in the Nilgiris could be at serious risk.
KEY FACTS
Rs 40 per kg for green tea leaves is sought as MSP by tea growers
Rs 12-15 per kg is the procurement price of green tea leaves
Rs 19 kg is the current increase in price due to a dip in production
100 kg per acre has been the average yield in December and January, a huge drop from 400 to 500 kg per acre each month earlier before winter
200 kg per acre was the average yield during the winter months last year
65,000 farmers in the Nilgiris rely entirely on tea cultivation
160 private factories purchase harvested green tea leaves
16 state-run industrial cooperative tea factories also purchase leaves