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LATEST NEWS UPDATES | Kerala’s tea planters say hit by ‘worst crisis in 100 years’

Kerala’s tea planters say hit by ‘worst crisis in 100 years’

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published Published on May 31, 2015   modified Modified on May 31, 2015
-The Economic Times

KOCHI: Hit by a slump in prices of tea and rubber, the plantation industry in Kerala has suggested a series of measures including a three year moratorium on taxes, a single window clearance system for diversification projects under the permission to use 5% land for activities other than plantations and purchase of one lakh kg of tea a week from Kochi auctions by the Kerala State Civil Supplies Corporation (KSCSC).

The Association of Planters of Kerala (APK) said the tea industry in the state is going through one of the worst crisis faced in the past 100 years of its existence. The average auction price realised by tea produced from Kerala in the current financial year is Rs 95.59 per kg when the cost of production is hovering above Rs 120 per kg.

For every kg of Kerala tea sold in the auction market, the producer is suffering a loss of Rs 25 per kg. Even though the average price of Kerala tea for the year 2015 is Rs 95.59 per kg, the actual price realised by the grower is less as nearly 90% of tea produced in Kerala is CTC grade whose average price is only Rs 93.75 per kg.

The large tea producers like Kanan Devan Hill Plantations, Harrisons Malayalam etc., who are known to carry out cultural operations meticulously, are forced to curtail cultural operations to a large extent due to the severe cash flow crunch.

Some of the estates have decided to extend the plucking rounds in order to reduce the cost and also the quantity of production, APK chairman C Vinayaraghavan said. The small and medium tea growers, who sell the green leaf directly to tea factories, started abandoning the operations altogether.

The Economic Times, 29 May, 2015, http://economictimes.indiatimes.com/news/economy/agriculture/keralas-tea-planters-say-hit-by-worst-crisis-in-100-years/articleshow/47463791.cms


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