Small tea growers seek regulation of leaf agents, weather-based crop insurance

GUWAHATI

The North East Confederation of Small Tea Growers’ Association (NECSTGA) has sought steps, including weather-based crop insurance and regulation of leaf-dealing agents, to safeguard the 200-year-old beverage industry.

In a memorandum to the Chairperson of the Parliamentary Standing Committee on Commerce, the NECSTGA pointed out that the woes of small tea growers need to be addressed as they accounted for 52% of India’s total tea production.

The association’s president, Diganta Phukan, and secretary general, Binod Buragohain, said the quality of tea has been deteriorating because certain players blended poor quality teas, and unscrupulous agents acted as a bridge between small tea growers and bought leaf factories.

A bought leaf factory is a tea processing plant not associated with any estate or plantation group. A bought tea factory produces granular or orthodox teas, largely from leaves procured from small tea growers through agents or suppliers.

“More than 90% of the leaves are transported to the BLFs (bought leaf factories) by the agents, and 50% of these leaves are damaged during transportation,” the NECSTGA said, lamenting that small tea growers do not get the right prices because the bought leaf factories pay for the leaves through these agents.

“All agents should be regulated by the Tea Board of India through a monitoring mechanism,” the association said, calling for transparency in the supply chain to maintain the quality of tea.

Referring to Prime Minister Narendra Modi’s avowed focus on the northeastern region, the NECSTGA said the Centre should treat tea like other crops, including paddy and wheat, and come up with a minimum or sustainable support price policy. The small tea growers, in particular, have been finding it tough to stay afloat due to the increasing cost of production.

Underlining the impact of climate change on tea plantations, the association said weather-based crop insurance had become necessary for the small tea growers to cover damage due to drought and heavy rainfall. “Tea bushes have been damaged and green leaf production has been declining (due to extreme conditions),” it said.

The other suggestions of the NECSTGA include promotional schemes to increase the per capita consumption of tea in India to one kilogramme from the current 840 grams, and a brand name for Assam tea. It said the image of Assam tea had suffered without branding, which necessitated adherence to quality.

“Blenders are making tea brands in different names by adding poor quality made (processed) teas from various sources,” the association said.

The NECSTGA also said the Tea Board of India’s schemes should be made available for small tea growers across the northeastern States, beyond Assam.