Business · India Bureau
Tea Board backs minimum price floor to support domestic producers
A Tea Board panel has recommended establishing a minimum sustainable price for tea, a move that has garnered backing from industry associations. The recommendation comes as India's tea sector, dominated by small growers who account for over half of national output, faces ongoing pricing pressures.
LSN India ·
India's Tea Board has moved to address pricing concerns in the country's tea industry by recommending the implementation of a minimum sustainable price mechanism. The proposal, which has received support from major industry associations, aims to provide greater price stability for domestic tea producers.
The initiative comes at a significant moment for India's tea sector. The country produces approximately 1,350 to 1,400 million kilograms of tea annually, cementing its position as a major global producer. Small tea growers form the backbone of this output, accounting for nearly 55 per cent of India's total tea production.
Industry associations have welcomed the Tea Board's recommendation, viewing it as a necessary step to protect producers from volatile market conditions. The proposal seeks to establish a floor price that ensures tea growers, particularly smaller operators, can maintain viable operations and sustainable livelihoods.
The move reflects ongoing efforts to balance market dynamics with producer welfare in a sector that plays a crucial role in India's agricultural economy and employs hundreds of thousands across tea-growing regions. Implementation details and timeline for the minimum price framework are expected to be finalized following further consultations with stakeholders.