The Tea Board has slashed the average price to be paid to farmers in The Nilgiris for their green leaf in May by a ₹2 a kg.
The Board’s Factory Advisory Officer Rakesh Taluru has announced the district average price as ₹15 for May. The price was ₹17 all through 2017. Now, it has gone back to the May 2016 level.
Taluru has warned bought-leaf factories not to pay less than ₹15.
This price-fall has arisen from a crash in prices of black tea manufactured using these green leaves of small growers.
The average price for black tea at the Coonoor Tea Trade Association (CTTA) auction has crashed to ₹87.93 a kg — the lowest since 2015 and ₹10 less than this time last year.
“The price sacrifice was telling, as for the first time this calendar, not a single grade of CTC tea of bought-leaf factories could enter the high-price bracket of ₹200/kg this week,” said CTTA Chairman Ramesh Bhojarajan.