![]() Financial Daily from THE HINDU group of publications Tuesday, Jun 07, 2005 |
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Agri-Biz & Commodities
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Tea Small tea growers abandoning harvest P.S. Sundar
Coonoor , June 6 SMALL growers in some pockets of Nilgiris district are now reportedly abandoning the harvest as the factories are refusing to take the increased arrival of the raw material. "Following the recent rains, the crop has increased 10 times. So, factories are unable to process all these leaves. In some cases the growers are disappointed that the factories are refusing to accept their harvest leaves and so, they are abandoning such bags full of leaves. In other cases, the growers are slowing down the harvest," Mr T. Rangaiah, former Vice Chairman of Tea Board, told Business Line. He added that some factories catering to the requirements of the small growers possess low capacity driers. "This reduces the output of made tea and these factories are discouraging the procurement of the green leaf from the farmers. In some case, they press into operation some artificial yardsticks like loyalty in times of crisis and reject the leaves from certain farmers." A tea scientist said that the output of the green leaves has increased 20 per cent over the same period of last year. "Growers are finding it difficult to market the crop. So, they hesitate to harvest. But, with favourable humidity and soil moisture arising from the recent rains, the crop prospects are bright." Even the red spider insect attack that is rampant in Kotagiri belt has been reduced to low-alarm level. "These pockets have been identified and rectification measures are on. To that extent the crop loss is prevented," the scientist added. Meanwhile, with the prices of some teas at the auctions conducted by the Coonoor Tea Trade Association (CTTA) hitting a new low of Rs 26 a kg, the payment to the small growers for the green leaf supplied by them to the factories is bound to fall further this month. As of now, an average of Rs 6 a kg is paid to the growers. This shows a marked reduction from Rs 10 a month back. Auctioneers are advising the sellers to stagger their supplies to even out the arrivals at the auctions matching with the low demand. Buyers are predicting a further fall in prices in the coming weeks in the context of huge offerings, heavy arrivals and reduced demand in summer months.
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