Govt considering to fix a minimum support price on bought tea

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Union Minister Rameswar Teli on Friday said the government is considering to fix a minimum support price on bought tea leaves on account of huge fluctuations in the rates of the raw material.

Addressing a press conference here, the Union Minister of State for Food Processing said he has spoken to the Assam government and representatives of the tea industry to fix the rate at Rs 25 per kg and a decision will be taken soon.

"When our small tea growers sell their green leaves, the rates fluctuate heavily from Rs 5 to Rs 30 per kg. This has affected the business. So, we have suggested that the rate should be fixed at Rs 25," he said.

This rate will be a kind of "MSP for the tea growers" and big corporates like the Tatas have agreed to the suggestion, the Union minister claimed.

"We have discussed the issue with the Assam Industry Minister. A decision needs to be taken soon as the prices have fallen to Rs 10 recently. We are working on it to find a solution," Teli said.

He added that the notification can be done at the state level itself instead of a Central regulation.

Teli also informed that due to various reasons, work force in the tea gardens are decreasing gradually and it has affected the industry.

Assam Industry Minister Chandra Mohan Patowary on Wednesday had said that the state's tea industry was in "a very bad shape" with many gardens being sold to companies in the Middle East.