Nilgiris tea and the brewing of a crisis, Pg7

Key Highlights:

• In 2000, Nilgiris plantation farmers protested due to dwindling Green Tea Leaves (GTL) prices, leading to violence and cancellation of the Ooty Flower show.
• A seminar was organized on September 4, 2000, to address the crisis, but solutions remain elusive after 25 years.
• The Nilgiris tea industry includes about 46,481 small tea growers with a plantation area of 34,408.85 hectares.
• Key demands of growers include a minimum GTL price, a base auction price, and recognition as an essential commodity under the Ministry of Agriculture.

Detailed Insights:

• The price decline was due to over-reliance on Russian exports, poor quality management, auction malpractices, adulteration, and neglect of local markets.
• From 1985-1995, tea plantation cover in the Nilgiris increased by 36% due to market support in the erstwhile USSR, but the collapse of the USSR and devaluation of the Rouble worsened the situation.
• The total capacity of tea factories in the Nilgiris is more than double the crop production, leading to reduced GTL quality.
• Unhealthy practices disrupted operations at the Coonoor auction centre, with some producers taking advances from brokers and supplying tea at fixed rates.
• Growers need to implement strategies like innovation, mechanization, self-employment, branding, direct trade, and exploring exports to CIS countries.
• INDCOSERVE and TANTEA could become price leaders, and there is potential for value-added products, leveraging the region's capacity to produce high-quality tea.

Key Concepts Involved:

• Green Tea Leaves (GTL): Unprocessed leaves from the tea plant, used to manufacture tea.
• INDCOSERVE: A government-run cooperative in India that supports tea growers.
• TANTEA: A tea plantation company owned by the Government of Tamil Nadu, India.