The Hindu Business Line : Indco tea factories seek minimum price

THE Nilgiris Industrial Tea Factories Members' Association has appealed to the Tamil Nadu Chief Minister, Ms J. Jayalalithaa, to fix a minimum price of Rs 8-10 a kg, depending on the quality, for tea green leaves supplied by small growers to Indco factories.

"Since the cooperative tea factories — called the Indco factories — are under the direct management of the State Government, the Chief Minister can certainly do this for the benefit of the nearly 21,000 growers who are members of these factories," Mr T. Rangaiah, President of the association, told Business Line.

Although sections of growers and political leaders have been calling for a minimum price to be fixed by the Centre by invoking the Tea Act, the State can directly help the farmers by fixing a remunerative minimum price.

"The green leaf harvested by the small farmers is a pure agricultural produce and this is a State subject. Besides, the factories to which the growers supply leaves are also managed by the State Government.

Hence, this is a workable proposition," he said. The State Government had already recognised the need to help small growers of Nilgiris and is implementing a subsidy scheme valid for six months.

"It can show the same concern and go a step ahead by leading the market with a minimum price fixed for the green leaf," he said.

Mr Rangaiah pointed out that if the Government fixed a floor price for the private factories, monitoring would be difficult.

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