A large number of small tea growers in Dooars and Terai regions of West Bengal have been hit by the sudden drop in the prices of their produce, namely, the green leaves.
Bought leaf factories and 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 six/seven per kg of green leaves compared with 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,” says a spokesman of the Confederation of Small Tea Growers Associations. “We’ll wait for a few more days and if nothing happen we will be forced to take some decisions.’’
Small tea growers in Dooars and Terai regions produce green leaves enough for the 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 sent for 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.
The spokesman regrets that with bought leaf factories having reduced the prices of green leaves they buy, the big tea estates too are offering lower rates than before.
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,” the spokesman said.
“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.