US

Wild fluctuations in green leaf prices in the state of Assam became the reason for a dispute between tea growers and tea processing companies.
A part of the problem stems from the fact that the prices of processed tea and auction prices have stayed relatively unaffected while green leaf prices kept fluctuating. This year, the green leaf price dropped to Rs8(US$ 0.16) per kilogram, the lowest it has been for several years. Such situation also creates a domino effect where the lowering of the green leaf price in one district causes a price drop in neighboring districts.

The All Assam Small Tea Growers’ Association (AASTGA) demanded the enforcement of the Tea Marketing Control Order (TMCO) 2003 that created a price-sharing formula, whereas every registered tea manufacturer who buys tea leaf from growers should share the total gross proceeds from the sale of such manufactured teas with the growers supplying green tea leaf at a rate not less than 65%.
There are around 70,000 small tea growers in Assam who produce around 29% of total tea output in the state.