Tea Board initiates study on price sharing formula for small growers
Representational image

Kolkata: The falling prices of tea leaves, coupled with exploitation by middlemen and the worsening impacts of climate change, have been severely affecting small and marginal tea farmers across various districts in the northern belt of West Bengal, leaving them struggling to survive.

Hub of Tea Growers

Popularly known as bought-leaf farmers, around 50,000 such small growers are based in the Dooars and Terai regions of West Bengal. Of these, 20,561 farmers are located in the Jalpaiguri district alone, the highest number of bought-leaf farmers in the state.

The total production area in Bengal spans around 39,640 hectares, out of which 25,270 hectares lie within Jalpaiguri district.

The plains of North Bengal also host approximately 264 bought-leaf tea processing factories that procure leaves from farmers and convert them into tea. Of these, 131 factories are located in Jalpaiguri.

The plains of North Bengal primarily produce Crush, Tear, Curl (CTC) tea, which is widely consumed within India, while the Darjeeling hills are famous for producing high-quality orthodox tea that is mainly exported to international markets.

Farmers’ Plight

However, farmers are increasingly experiencing severe financial losses due to declining prices for green tea leaves.

“The production cost of one kilogram (kg) of green tea leaves has risen above ₹30 per kg, factoring in labour charges and other inputs. But we are compelled to sell the green leaves at ₹22 per kg or even less. During Durga Puja last year, prices dropped as low as ₹8 per kg. Since tea leaves need to be dispatched to the factory within six hours of plucking to retain their quality, we can’t afford to wait for better prices. Hoarding is not an option. It has become extremely difficult to even cover costs—profit is no longer in the picture,” said Arun Baidya (35), a tea farmer based in the Fatapukur area of Jalpaiguri district.

He added that exploitation by middlemen was another significant issue plaguing their livelihood. “The middlemen are the real beneficiaries in the entire chain. They buy the leaves from us at a lower price and then sell them to the bought leaf factories at a much higher rate. They often claim that they’re paying us just ₹1 less per kg compared to what the factories offer, but we have no way of knowing the actual rate they sell the leaves. We labour for months, and they reap the financial rewards,” he said.

Barun Mazumdar (60), another tea farmer from Sariam village, shared that the absence of subsidies from the government worsens their situation. “Unlike other farmers, we do not receive any subsidy or financial support from the government. We bear all the expenses ourselves. The recent government order banning the use of chemical fertilisers is also going to drive our production costs up even further,” he said.

Demand for Minimum Price

Leaders of farmers’ unions are now calling upon the government to introduce a Minimum Sustainable Price for green tea leaves so that the farmers can stay afloat.

“We want the government to fix a minimum price for tea leaves between ₹50 and ₹70 per kg. Such a move will enable small tea growers to earn a minimal profit. However, this hike is only possible if the bought-leaf tea factories increase the selling price of processed tea to traders,” said Bijay Gopal Chakraborty, General Secretary of the Jalpaiguri District Small Tea Growers’ Association.

In 2023, the Tea Board and the Food Safety and Standards Authority of India (FSSAI) issued a circular mandating regular tea testing at processing units to ensure the leaves were free of harmful chemical residues. This circular had an unintended negative impact on small growers, as many factories initially stopped procuring their tea leaves.

However, an intervention by West Bengal Chief Minister Mamata Banerjee later ensured that the bought leaf factories resumed procurement from the affected farmers.

“We are currently carrying out awareness programmes among farmers about the dangers of using chemical inputs, but ideally, this responsibility lies with the factories that purchase the leaves. Unfortunately, they seem largely unconcerned, and we’ve had to take matters into our own hands,” Gopal added.

Climate Change Impact

Climate change has emerged as another major threat, badly affecting crop yields in the region. Tea producers told EastMojo that they have observed a 30 per cent decline in production since the previous year, with erratic weather patterns and changing rainfall cycles proving disastrous for their plants.

Call for Transparent Auctioning and Trade Policy Reform

Meanwhile, factory owners argue that they too are reeling under pressure, as the prices of finished tea have drastically reduced in the domestic market.

“The selling price of tea has fallen from ₹200 per kg to ₹110 per kg in recent months. This has happened due to intense competition from Nepalese tea, which enjoys a 100 per cent Free Trade Agreement (FTA) with India. It is flooding our market and ruining local producers. The government must invest in infrastructure to properly test and certify chemical-free tea,” said Sanjay Dhanothi, President of the North Bengal Tea Producers’ Welfare Association.

Tea growers are also demanding stricter enforcement of the tea auction process, which, they believe, could help them get better prices.

“Currently, only around 39 per cent of tea is sold through the auction mechanism, despite regulations being in place. The rest is sold directly to buyers without any transparent method, leaving farmers in the dark about the prevailing market rates. A fully transparent auction system would ensure better returns for growers,” said Rajat Raikarjee, Chairman of the West Bengal United Forum of Small Tea Growers’ Associations.

The farmers stress that without urgent intervention—whether through pricing reforms, climate adaptation support, or a fairer trade structure—the tea-growing community of North Bengal will face an even more uncertain future.

Also Read: Arunachal’s Yari Nayam is putting the Northeast at the heart of JNU elections

Independent Journalism Needs You
Gurvinder Singh
Gurvinder Singh Reporter, EastMojo

You just read a story that took days to report. Help us keep our reporters on the ground in the Northeast.

For Rs 83/month - less than a cup of coffee
Ad-free reading, support and keep important stories alive
Become a Member
OR

Support once (any amount)

₹
(incl. 18% GST)
or
UPI QR Code
Scan to pay via UPI

Leave a comment