A large number of small tea growers in Dooars and Terai regions of West Bengal have been hit hard by the sudden drop in the price of their produce, namely, the green leaves.
The bought leaf factories, the stand-alone tea processing units who are the major buyers of green leaves from small tea growers, are now paying at the rate of Rs 6/7 a kg of green leaves compared to Rs 20/22 even some 10 days ago citing oversupply, according to tea industry sources. While the small growers are not buying the oversupply theory, there is little they can do about it.
“We’ve kept posted the Siliguri office of Tea Board about the latest development on the price front hoping that something will be done to help us,” said a spokesman of Confederation of Small Tea Growers Associations (CISTA).The small tea-growers in Dooars and Terai regions produce green leaves enough for production of an estimated 130 million kg of made tea annually and 80 per cent of it is supplied to 105 bought leaf factories located in the regions, with the balance 20 per cent going to meet the requirements of some big gardens having their own processing facilities. An estimated 4.65 kg of green leaves are required to produce one kg of made tea. With bought leaf factories reducing the price of green leaves they buy, the big tea estates too are offering lower rates than before.
The bought leaf factories generally quote lower prices for green leaves around the Durga Puja time when the tea season gradually slows down.
“What is causing concern to us is that this year this is being done at the beginning of the season,” observes the CISTA spokesman. “May be they are upset at Tea Board’s decision to introduce mandatory sale of 70 per cent of their production through public auctions”.
When contacted, a spokesman for Tea Board said the problem was temporary and would be over soon.