The Hindu Business Line : ICWAI studying tea output cost

TO explore the possibility of fixing a floor price for the tea green leaves supplied by the small growers in the Nilgiris, the Commerce Ministry is believed to be currently undertaking a cost study.

"A team from the Institute of Cost and Works Accountants of India (ICWAI) visited our area and collected cost details from us. They told us that they were studying the cost of production for green leaf as desired by the Centre," Mr K. Belli, an advocate and small grower who led a group of small growers in the discussions in Doddacumbai village, told Business Line.

The proforma seeks information on the individual cost in respect of materials, fertilisers, pesticides, weedicides, micronutrients, wages for plucking, pruning, manuring, draining and spraying, irrigation, implements, supervision, depreciation, taxes, transport and the like.

Since the yield in the area is 2,500 kg per acre, the cost of production of green leaf works out to Rs 10.66 a kg.

"We have appealed to the Commerce Minister and the Tea Board to fix a floor price of Rs 15 a kg for the green leaf which alone will be a workable rate", Mr Belli said.

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