The Tea Board of India has failed to arrive at a consensus on fixing a minimum price for green leaf.

An official, who attended the Board’s meeting in Calcutta on Tuesday, on Wednesday said no consensus could be arrived at and a committee was constituted to discuss the issue threadbare. It will have representatives from different segments of the tea industry.

The official said the board wants more time to discuss the issue as it needs to have the cooperation of all.

“As this would be for all the tea-producing states, they wanted the prevalent prices at which green leaf is being bought,” the official said.

He said it is a complex issue since the minimum price will not be a support price.

“There will be unsold green leaf at that price which the small tea growers would have to destroy,” he said, adding that they would not like that to happen under any circumstances.

Another official said the fixing of minimum price for green leaf can be done only through wide-ranging stakeholder consultations and not unilaterally.

Low prices at the auctions have become the biggest problem for the industry. From April to August, the average price of tea was Rs 164.97, compared to Rs 170.70 during the same period last year, while the cost of production was Rs 200 per kg. This means the prices being realised at the auctions is not covering the cost of production.

The issue becomes relevant also as the share of small tea growers in tea production is almost equal now to the big growers but the cost structure of the two segments is completely different, putting the organised sector at a distinct disadvantage over the small growers in terms of cost.

“There has to be a level playing field for the two segments. Hence, it is necessary that the minimum price for green leaf be fixed. Apart from creating a level playing field, it will also help the small growers to realise better revenue for their produce. This will automatically address the issue of quality,” a tea industry official said.

Assam industries and commerce minister Chandra Mohan Patowary had said on September 20 that it had asked the Tea Board of India to discuss the issue in its board meeting.

He said a minimum price for green leaf should be fixed for all tea-producing states and it could come into effect from the next season. The meeting was attended by all the stakeholders of the industry and all of them supported the issue.