South Indian small tea growers are up in arms over the reported move by producing companies to import tea, citing production drop on account of a combination of factors such as adverse weather conditions, Covid lockdown, etc.

According to growers, the producing companies plan comes at a most inappropriate time when prices of bought tea leaves are ruling at a record ₹30 per kg, after a gap of two decades. The prices have started moving up on account of lower production in plantations due to inclement weather such as rain, frost, etc.

The Covid-19 restrictions impacted production in a big way, recording a 30 per cent drop. The Assam floods also contributed to a production drop in North India, they said.

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All these developments have prompted companies to import cheaper dust tea so as to blend it with their produce to cater to the export markets, YC Stephen, State President, Small Tea Growers Federation, Idukki, told BusinessLine.

It is understood that tea producing companies have received necessary clearance to import dust tea from other producing nations. Since the duty structure in Vietnam, Indonesia for imports is on the higher side, the tea would be brought to Sri Lanka and shipped to India at 8 per cent duty under the Indo-Sri Lankan FTA, he said.

The move, he said, would bring down the prices of green tea leaves plucked by small tea growers, hitting lakhs of workers in the country especially women labourers badly.

Protests planned

Gearing up for an agitation, Stephen said several like-minded farmers’ organisations have extended support for the cause and it was decided to intensify the protest by organizing dharnas before the State Secretariat soon.

Confirming the development, Ramesh Bhojarajan, President, The Nilgiris Small Tea Growers Association, said that Federation of All India Tea Traders Association are making efforts to import tea as the prices in the domestic market have gone up and they do not wish to pass the increase to the customers. Around 60.35 million kg of tea have been imported in the last three years out of which only 24.23 million kg have been re-exported. The balance 26.92 million kg have been sold in the domestic market and this has led to a market crash.

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If tea imports are facilitated or teas that are meant for re-exports are allowed to seep into the local market, he said this would increase the supply and cause the market to crash, thereby affecting small growers.

L Vairavan, secretary, The Nilgiris Bought Tea Manufacturers Association, noted that tea prices have gone up because of temporary reasons such as lockdown, floods, climatic conditions, etc. This would reverse shortly and the supply would be stabilised. The current rates which small tea growers are getting are only a sustainable price and not a profitable one.

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