Study on Cost of Production, Pricing of Green Leaf, and the Relationship of Small Tea Growers (STG) with Bought-Leaf Factories (BLF) and Auction Centres

[Small Tea Growers - Working Paper]

The price of green leaf was at an all-time high in the year 1998-99, and thereafter, it started declining. This has pushed the Small Tea Growers (STGs) into distress. The small tea growers and their workers are at the receiving end in the supply chain of the tea industry. They have little voice or bargaining strength for their produce (green leaf), with bought-leaf factories (BLF) exercising monopoly over them. The research aims to study the cost of cultivation of tea green leaf, pricing of green leaf, market conditions (i.e., marketing channels of green leaf), relationship of STGs and BLFs, policy measures by Tea Board of India (such as price-sharing formula, or PSF) and their effective implementation, and alternative model of price determination of green leaf in order to improve the bargaining power of STGs. It focuses on aspects such as farm management, scientific agricultural practices and remunerative return, which will ultimately enhance the viability of the STGs in the long run.