Despite a healthy harvest this season, thanks to favourable rains and climate, small tea farmers in the Nilgiris are facing a financial crisis due to plummeting prices for green tea leaves. While the Tea Board of India fixed the average price at ₹15.80 per kg for June (down from ₹17.50 in May), factories are reportedly purchasing green leaves at just ₹12 per kg, citing oversupply.
Farmers say their production cost per kg is around ₹25, factoring in labour, transport, and fertilisers. They are demanding a Minimum Support Price (MSP) that is at least 50% higher than the production cost, as recommended by the Swaminathan Committee. “Without MSP, we’ll remain trapped in losses,” said farmers.
Thumbur I Bojan, president of the Hill District Small and Marginal Farmers Association, suggested fixing a minimum auction price of ₹250 per kg of tea powder, with ₹200 going to farmers (₹50/kg green leaf) and ₹50 for manufacturers. Since four kilograms of green leaf are needed to make one kg of tea powder, the plan ensures fair compensation.
Growers also want strict auction-only sales for tea powder to prevent adulteration by private retailers. With over 60,000 small farmers affected, the Nilgiris Ari Gowder Farmers Association has called for a protest in Ooty on July 17, pressing the state and Centre for intervention.
Tea farmers stress that while consumer tea prices soar, their earnings shrink—jeopardizing the livelihood of over three lakh workers in the Nilgiris’ tea ecosystem.