The Confederation of Indian Small Tea Growers’ Association (CISTA) has voiced strong opposition to the suggested price sharing formula (PSF) for determining the rate of Green Tea Leaves (GTL).
In a letter addressed to Amarendra Singh Bhatia, chairman of the Tea Board of India, CISTA president Bijoy Gopal Chakraborty expressed concerns about the proposed average cost of production for small tea growers (STGs) compared to those in Assam and West Bengal.
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While Mr Chakraborty did appreciate the Tea Board’s efforts and sought input from STGs before finalising the recommendations submitted by a private agency appointed by relevant authorities, he also criticized the role of this agency in determining production costs.
According to him, the agency’s report shows that GTL production costs for STGs in Tinsukia, Assam are Rs 18 per kg.
Similarly, costs in other areas such as Dibrugarh (Rs 19), Jorhat (Rs 18.5), Golaghat (Rs 20) and Udaigiri (Rs 17.50) were also reported.
The CISTA president also pointed out that according to the agency’s recommendations presented at a Tea Board meeting in Kolkata on 11 July year, production costs in Jalpaiguri, Darjeeling and North Dinajpur are only Rs 13 per kg.
Mr Chakraborty also mentioned that according to previous reports from 2003 and 2007, the cost of production for STGs in West Bengal was Rs 14 per kg.
He further claimed that the Tea Board had previously relied on the Institute of Cost & Works Accountants of India (ICWAI) for determining production costs.
On a positive note, CISTA did appreciate certain recommendations such as setting a minimum benchmark price and eliminating district-level price monitoring committees, as well as declaring factory-wise prices based on a specific formula and working with GST to obtain average factory prices.
They also supported the regulation of green tea leaf agents.
