Business · Energy & Commodities · 2 hrs ago
Tea producers welcome proposal for minimum sustainable price
A Tea Board of India committee has recommended a minimum sustainable price for tea in India.
Tea industry stakeholders welcomed the proposal, saying it could help producers cover costs and support higher wages for garden workers.
They say tea prices have risen by about 2–3% a year, while input costs have increased by an estimated 10–14%.
Producers are also concerned that implementing the Code on Wages could add to wage costs and strain their finances.
The proposal has been sent to the Ministry of Commerce, which has not decided whether to approve it.
Producers say the proposed price band would cover production costs, but have not given details of the price or its effect on shop prices.
The industry employs millions of workers across large and small tea gardens, and stakeholders say better returns are needed to keep operations and investment going.
A Tea Board of India committee has recommended a minimum sustainable price for tea, and industry stakeholders welcomed the proposal on November 10.
The proposal has been sent to the Ministry of Commerce, which has yet to decide on it.
Producers say the price framework could help bring revenue in line with rising production costs and support wage increases and the industry’s long-term sustainability.
Tea prices have grown by about 2–3% annually, compared with estimated input-cost growth of 10–14%.
The producers did not specify how the proposal might affect retail prices or consumers.
- Who
- Tea industry stakeholders, including representatives of producer associations, welcomed the proposal.
- What
- A Tea Board of India committee recommended a minimum sustainable price for tea.
- When
- Stakeholders welcomed it on Tuesday, November 10, 2026.
- Where
- India. The proposal was sent to the Ministry of Commerce.
- Why
- Producers say it could help address the gap between production costs and tea prices, support wage increases and sustain the industry.
This story does not have two clearly opposing sides.
Tea industry stakeholders welcomed the committee’s recommendation for a minimum sustainable price.
The proposal was sent to the Ministry of Commerce, which had yet to decide on it.
- Price growth
- Tea prices rose by approximately 2–3% annually.
- Input-cost growth
- Estimated at 10–14% annually.
- West Bengal daily wage
- ₹250 per day for a tea garden worker.
- Tea gardens
- About 270 large gardens and hundreds of small gardens across the State.
What people are saying
A Minimum Sustainable Price framework is therefore essential to bridge the widening gap between production costs and market realisations and to ensure the long-term sustainability of the industry,
Ensuring remunerative returns to producers is critical to sustaining operations, facilitating investment in re-plantation and productivity enhancement and securing the industry’s long-term sustainability,
The market is dysfunctional and there is no level playing field. If market forces are left to determine the fate of industry, it will bring about the demise of tea gardens,
Over the years, tea prices have registered a marginal compound annual growth rate (CAGR) of approximately 2–3%, as compared to an estimated CAGR of 10–14% in input costs.