Centre directed to fix minimum price for green tea leaf

  • 21/10/2012

  • Hindu (New Delhi)

The Madras High Court has directed the Union government to fix the minimum price for green tea leaf payable to small tea growers within six weeks. It also directed the government to do such exercise by calling for a realistic report on the problem faced by the small tea growers in The Nilgiris district and thereafter, arrive at a scientific sharing formula between the growers and the manufacturers. Disposing of petitions from two small tea growers in The Nilgiris district, Justice K. Chandru said: “Since the monopoly power is vested on the Government of India, in this regard, it requires a scientific human approach and should not be dictated by the artificial market forces. The endeavour of Government of India must be to provide a realistic price in respect of the green leaf produced by the small tea growers and must be based upon the ground reality regarding the cost of production of such green leaf.” The judge also directed the Union government to take note of the Institute of Cost and Works Accountants of India (ICWAI) Committee report dated on May 5, 2008 and even call for any other study in this regard and arrive at a just and reasonable conclusion and price to be paid for the green leaf produced by small growers. Following a direction from the Division Bench of Madras High Court in 2007, the Tea Board engaged the services of ICWAI to conduct a study to ascertain the cost of producing tea leaf. Based on the findings, the Union government announced a price-sharing formula between tea growers and the manufacturers in 2008. Not satisfied with the government’s decision, the two petitions were filed by R. Dharuman and K.B. Bojan, small tea growers in The Nilgiris district. They contended that the Union government’s order was nothing but eyewash and the order would not bring any solution to the problem faced by the small tea growers. Small tea growers were entitled to a reasonable return, and the Centre should fix minimum support price as it did for sugarcane and rubber. Mr. Justice Chandru said it was the brokers and buyers who controlled the market and a large number of small tea growers were left high and dry. “The Union of India and the Tea Board have not really taken note of the direction issued by the Division Bench earlier and have hurriedly announced a formula which is far from any ground reality.”