Overview
- A 10-member committee of the Tea Board submitted its MSP report to the Commerce Ministry on Tuesday, November 10, recommending a floor-price framework for tea.
- The committee based its proposal on ICMAI cost assessments and designed separate benchmarks for bought-leaf factories and organised estates.
- The recommended price mechanism links the benchmark to a composite index of wage movements and the consumer price index and calls for periodic reviews to keep prices aligned with costs.
- Five major industry associations publicly backed the recommendation and urged the Commerce Ministry to notify the MSP quickly so producers can plan for rising wage bills.
- Producers say the move responds to a long-running squeeze—tea prices have risen about 2–3% CAGR while input costs rose roughly 10–14% and labour makes up about 60% of costs—so an approved MSP could stabilise green-leaf prices for small growers and ease pressure on bought-leaf factories.