Siliguri, Feb 15 (.) The Tea Association of India (TAI), predominantly a platform for producers of the beverage, has called for the introduction of a Minimum Sustainable Price (MSP) mechanism for made tea, linking it to production costs and quality parameters to ensure fair returns for all stakeholders in the tea industry.
Addressing the 54th Annual General Meeting of the North Bengal Branch of the Tea Association of India in Jalpaiguri, TAI president Shailja Mehta urged the Tea Board to establish an effective pricing framework.
“We appeal to the Tea Board to work out an effective mechanism to implement a Minimum Sustainable Price for made tea based on cost of production with defined quality parameters,” Mehta said.
She noted that such a mechanism, if properly enforced, would improve green leaf quality, ensure fair wages for workers in the small grower segment, provide consumers with better-quality tea, and enable estates to receive sustainable and remunerative prices.
She clarified that the proposed mechanism would differ from existing government support systems such as the Minimum Support Price, Price Stabilisation Fund, and Fair and Remunerative Price for sugarcane, as it would not involve government procurement or direct financial intervention.
Instead, the Minimum Sustainable Price would ensure that tea sold in the domestic market fetches at least the cost of production plus a 50 per cent margin, in line with the vision of an “Atmanirbhar Bharat.”
Highlighting production trends, TAI North Bengal Branch chairman Uttam Chakraborty said tea production in the region has increased significantly over the past 15 years, rising by 78 per cent from 230 million kilograms in 2010 to 411 million kilograms in 2025. India’s overall tea production has also grown by 35 per cent during the same period, with total output estimated at 1,369.98 million kilograms in 2025—about five per cent higher than the previous year.
North Bengal’s production alone rose by 29 million kilograms, or eight per cent, in 2025 compared to 2024. However, while small growers recorded a 13 per cent increase in production, organised estates saw a decline of two per cent, reflecting structural challenges within the sector.
Chakraborty noted that small growers now account for about 67 per cent of North Bengal’s tea output, compared to just 25 per cent in 2006, while the organised sector contributes around 45 per cent of production in North India. He stressed that this shift underscores the need for policy reassessment to ensure sustainability, competitiveness, and balanced growth across the tea industry. . MBN . .