Coonoor, September 19:

Tea planters in south India are looking for an immediate government response on two of their main demands to remain viable and sustain growth — a floor price for green leaf and suspension of online electronic auctions. The two demands, which particularly affect thousands of small growers, were articulated by delegates at the 112th annual conference of the United Planters’ Association of South India (Upasi) here.

“We have been representing to the union commerce ministry for a reasonable floor price between Rs 10-15 Indian Currency (IC) per kg of green leaf supplied to factories for processing to offset increasing production costs and overheads. “We hope commerce minister Kamal Nath, who is presiding over the conference, will respond positively to our demand and mitigate the hardship of small growers,” a leading tea planter from Nilgiris said.

The plantation sector in south India annually produces about 200 million kg of tea in different varieties. As one of the six agro-climatic regions, Nilgiris alone has about 60,000 small growers producing organic and green teas.

In a bid to address the issue, the commerce ministry has roped in the Institute of Cost and Works Accountants of India (ICWAI) to evolve a workable floor price and a mechanism to monitor its implementation. The planters are also looking for a directive from the government to the Tea Board for switching back to the offline open auction system to ensure a level-playing field for all growers till e-auctions are streamlined.

“Ever since the electronic auction system was introduced from April 1, prices have shot up abnormally due to monopolisation and price fixation by a section of buyers, operating as a cartel from different places on consoles provided by the Tea Board.”