Overview
- A 10-member committee of the Tea Board of India has recommended a Minimum Sustainable Price for tea to bring producer returns closer to rising production and wage costs.
- The recommended benchmark would use a composite index based on wage movements and the consumer price index with periodic reviews to track costs and inflation.
- Major industry bodies representing estates, bought-leaf factories and small growers publicly backed the recommendation and urged the Commerce Ministry to notify the MSP promptly.
- Producers say the move responds to a long-running gap where tea price realizations rose about 2–3% annually while input costs climbed about 10–14%, and note wages account for roughly 60% of production costs.
- Details still missing include the specific MSP band, modelling of likely effects on retail prices, and the Commerce Ministry’s timetable; supporters say an MSP could protect jobs, enable replanting and lift returns for the roughly 55% of output from small growers.