The Tea Board has declined to waive the ₹23-crore penalty on Indco cooperative factories in The Nilgiris district.

The Baduga Desa Party had urged the Board to ensure that the small growers are paid the price as fixed by the Board for the green leaf they supply. The Indco factories were hoping to be exempted because their were a co-operative. “We are now happy that the Board has ruled that no such exemption could be given, and the small growers will now get their due share,” said Manjai Mohan, State President of the Party.

Tea Board Secretary S Soundararajan wrote to Dharmendra Pratap Yadhav, Secretary, Tamil Nadu MSME Department on Thursday that the requested penalty waiver is not possible.

the decision to recover the differential between the announced district average price for the green leaf and the actual price paid by Indco factories has not been taken in isolation against such Indco factories. “Such action has been taken against all defaulting bought leaf factories,” he said.

Soundararajan also said it is inconsequential whether the factory is owned by a co-operative society as long as the green leaf is sourced from other than own estate. The claim that profit and dividend are shared among the small growers who are members of Indco factories and hence they can pay less than the fixed price does not hold ground as the factories have to honour the law of the land, he asserted.

He also observed that waiver of penalty is not possible as any relaxation would frustrate the efforts of the Board for ensuring better price realisation for small growers.

“We thank the Central Government and the Tea Board for this decision taken realising the situation of the small growers”, Manjai Mohan said.

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