Book titled “Minimum Price” for the tea industry published in Guwahati

Book titled “Minimum Price” for the tea industry published in Guwahati

The main points of his speech are:

* The major players in the industry are the small tea growers, who hold about 52 percent of the market share and produce about 702 million kilograms of tea, and the large tea growers, who hold 48 percent of the market share and produce about 648 million kilograms of tea.

* The tea industry is suffering from oversupply, and this situation is expected to continue at least until 2030, according to a 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 meet their cost of production (COP). Meanwhile, other farmers in India are benefiting from the protection of the minimum price (MSP).

* A minimum price mechanism for tea, unlike the MSP, would not require government intervention in purchasing or financing transactions. This approach would support tea producers without placing a financial burden on the state or central government.

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

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