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The Madras High Court has directed the Union Government to fix a realistic price for the green tea leaf payable to the small tea growers in the Nilgiris.
The High Court has, in its Order dated October 12, 2012, directed the Union Government to exercise its power under Section 30 of the Tea Act 1953 by calling for a realistic report on the problem faced by small tea growers in Nilgiris district and thereafter, arrive at a scientific sharing formula between the growers and the manufacturers.
‘Since the monopoly power is vested on the Government of India, it requires a scientific human approach and should not be dictated by the artificial market forces.
The endeavour of the Government 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,’ said Justice K. Chandru, disposing the petition from two small tea growers – R Dharuman and K.B. Bojan.
The judge also directed the Union Government to take note of the ICWAI (Institute of Cost and Works Accountants of India) Committee report dated on May 5, 2008 and (if need be) 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.
He has further stated that the exercise should be undertaken by the Union of India within a period of six months from the date of receipt of a copy of the said order.
The petitioners – Dharuman and Bojan went to Court as they were not satisfied with the price-sharing formula (between tea growers and manufacturers) announced by the Union Government.
Justice Chandru has, in the order observed that a large number of small growers were left high and dry as the market was largely controlled by brokers and buyers.
“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.”
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