Tea Board plans minimum benchmark auction prices as growers stare at losses

Rising labour costs and muted auction prices have meant that some tea growers are not able to even cover their minimum production cost

In the wake of rising cost of production and muted auction prices, the Tea Board is working on a plan to set minimum benchmark prices for various tea grades to support producers. It will help tea producing companies to shield themselves from any losses while selling their produce at auction centres. When announced, tea will be the second commodity after sugar where a minimum price has been fixed.  

At present, tea prices are decided in electronic auctions. Invariably, in the initial part of the season, they are lower than the cost of production, which puts pressure on margins. In