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Nilgiris Tea Crisis

Nilgiris Tea Crisis

1. Background

  • Nilgiris tea industry facing persistent cost price crisis for Green Tea Leaves (GTL).

  • Farmers, mostly Badagas, protested violently in late 1990s–2000 due to plummeting GTL prices.

  • Historic support from USSR collapsed after 1991 → worsened crisis.


2. Key Issues Identified

  • Over-reliance on Russian exports (market crash hurt small growers).

  • High production costs proportional to quality.

  • Excess factories in weak feeder areas → poor GTL quality.

  • Auction malpractices (brokers advancing money to farmers, fixing rates).

  • Disparity in sales: Coonoor sales rose post-1990s while other regions declined.

  • Despite all this → average prices stagnated at lowest levels.


3. Current Situation (as per Tea Board of India)

  • Nilgiris tea industry: 46,481 small growers, plantation area of 34,408.85 hectares.

  • Main demands:

    • Minimum GTL price.

    • Base auction price.

    • Recognition of Nilgiris plantation crop as an essential commodity under Ministry of Agriculture.

  • Presently remains under Ministry of Commerce.


4. Challenges for Small Growers

  • Rising labour costs.

  • Lack of branding & direct trade opportunities.

  • Failure of government subsidies & schemes.

  • Resistance to intercropping suggestions.

  • Younger generation planters shifting to IT sector instead of continuing tea cultivation.


5. Possible Solutions / Recommendations

  • Innovation & mechanisation (plucking, pruning) to reduce costs.

  • Explore self-employment models to cut labour dependence.

  • Branding and direct trade to improve margins.

  • Expand exports to CIS countries & untapped markets.

  • INDCOSERVE & TANTEA (govt-run) could act as price leaders through bulk procurement.

  • Potential for value-added products → “Nilgiris Champagne Teas”.


6. Conclusion

  • Nilgiris tea, though globally reputed, is trapped in a sustained cost-price crisis.

  • Without reforms in pricing, marketing, and grower support, small growers remain vulnerable.

  • The future lies in innovation, market expansion, and recognition under agriculture policy.


 


 

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