Tea Board panel proposes minimum sustainable price for tea

A 10-member committee of the Tea Board of India has recommended introducing a minimum sustainable price (MSP) for tea, a proposal the Union commerce ministry has received but not yet decided on. Five industry associations, the Indian Tea Association (ITA), Tea Association of India (TAI), United Planters’ Association of Southern India (UPASI), Confederation of Indian Small Tea Growers Associations (CISTA) and the Federation of Indian Tea Manufacturers Association (FITMA), welcomed the recommendation on Tuesday, 10 November, and urged early notification.

The committee proposed a benchmark price based on a composite index of wage movements and the consumer price index, with periodic reviews. Industry bodies said tea prices have grown at a compound annual rate of 2 to 3% while input costs rose 10 to 14%. Labour accounts for about 60% of production costs, and producers expect further hikes once the Code on Wages takes effect. Dhunseri Tea Chairman C.K. Dhanuka said there is an under-recovery of Rs 20 to 25 per kg. The MSP aims to ensure remunerative returns and long-term viability for the sector.

Update, 11 November 2026: The Economic Times now also reports the story, confirming the five associations’ welcome and the committee’s proposed composite index. It adds details on small-grower sales and bought-leaf factory economics. The commerce ministry has not yet notified the MSP.