India - Small tea growers seek MSP, crop insurance & agent regulation

02.06.2025 794 views

The North East Confederation of Small Tea Growers’ Association (NECSTGA), an Assam-based umbrella organisation, has intensified its appeal to the central government, urging immediate interventions to safeguard India’s 200-year-old tea industry.

Representing small tea growers who account for a significant 52% of the nation’s total tea production, NECSTGA has sought crucial steps, including weather-based crop insurance and stringent regulation of leaf-dealing agents.

Sources indicate that the association has submitted a memorandum following the appeal to the Chairperson of the Parliamentary Standing Committee on Commerce.

In the detailed memorandum submitted to the Chairperson, NECSTGA cited the critical challenges facing small tea growers, stating the need for urgent policy reforms.

NECSTGA officials stated, “Small tea growers’ woes need addressing, as they account for 52% of India’s total tea production.”

According to Diganta Phukan, President, and Binod Buragohain, Secretary General of NECSTGA, the overall quality of tea has been deteriorating due to the blending of poor-quality teas by certain players and the unchecked activities of unscrupulous leaf-dealing agents. These agents act as intermediaries between small tea growers and “bought leaf factories” – processing plants that procure leaves from various sources.

“Agents transport over 90% of the leaves to BLFs (bought leaf factories), and 50% of these leaves sustain damage during transportation,” NECSTGA lamented.

They further pointed out that small tea growers often do not receive fair prices, as bought leaf factories pay for leaves through these unregulated agents.

The association has strongly advocated for the Tea Board of India to regulate all agents through a robust monitoring mechanism, asserting that transparency in the supply chain is paramount for maintaining tea quality.

Echoing Prime Minister Narendra Modi’s focus on the northeastern region, NECSTGA has urged the Centre to treat tea akin to other agricultural crops like paddy and wheat, and establish a minimum or sustainable support price policy. Small tea growers, in particular, are struggling to remain viable amidst escalating production costs.

Underlining the severe impact of climate change on tea plantations, the association stressed the necessity of weather-based crop insurance for small tea growers.

The association noted that extreme conditions have damaged tea bushes and caused green leaf production to decline.

NECSTGA proposed promotional schemes aimed at increasing India’s per capita tea consumption to one kilogram from the current 840 grams. They also strongly advocated for a distinct brand name for Assam tea, arguing that its image has suffered without proper branding, necessitating strict adherence to quality standards.

“Blenders are making tea brands in different names by adding poor quality made (processed) teas from various sources,” the association added, citing the dilution of brand value.

Furthermore, NECSTGA called on the Tea Board of India to make its schemes accessible to small tea growers across all northeastern states, extending beyond the current primary focus on Assam.

 

Source - https://nenow.in

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