Wednesday March 21, 2018
Home India Small tea gro...

Small tea growers in north Bengal prepare to set up own processing units


Kolkata: Complaining about the abnormally low price for their yields, small tea growers in north Bengal’s Terai and Dooars area are now seeking help from the union government to set up their own processing units to reduce their dependency on estate and bought leaf factories (BLFs) in the region.

Small tea growers (STGs) – who sell their green plucked leaves to these processing factories – alleged that the payment from the bought tea leaf factories for their produce is much too low. The BLFs do not own any gardens but buy the green plucked leaves from the small tea growers, process them and sell it to packers and blenders.

“While the production cost in north Bengal is as high as Rs. 12.78 per kg, we only get Rs. 5-7 per kg on selling to the BLFs. We cannot sell tea in the auctions, as a result of which we are not able to know how much our teas actually fetch in the markets,” Bijoygopal Chakraborty, president of the Confederation of Indian Small Tea Growers Association (CISTA), told IANS.

According to a majority of the small tea planters, self-owned micro-small garden factories will help reduce their dependency on the BLFs and hence improve their revenues and profitability.

He alleged the 137 BLFs in the region are forcefully enforcing their own quality standards, disregarding the norms of the Tea Board, which is resulting in the STGs getting low incomes.

Sanjay Dhanuti, president of the North Bengal Tea Producers Association – comprising the BLFs – said the prices are dependent on the quality of leaves, which varies across gardens and flush seasons.

“If the stock has 20 percent count of good quality green leaves, it can fetch between Rs. 10.5-12 per kg while a 35 percent fine count can fetch Rs. 13 per kg. However, for produce which is of low quality, it goes around the market, for as low as Rs. 7 per kg and nobody is willing to buy it”, Dhanuti told IANS.

This problem, however, does not persist for the small tea growers in Darjeeling, who get a fair price for their yield, selling the leaves at Rs.35 to Rs.40 a kg to the BLFs.

The STG association has written to union Commerce and Industry Minister Nirmala Sitharaman, highlighting their concerns.

“There is a lack of transparency in terms of how the BLFs and the estate factories sell the made tea and the price at which they sell it. The price of tea fluctuates so much that during the peak season time it reduces to Rs.3-Rs.5 a kg”, the letter said.

Chakraborty said lack of their own processing units, remote location of the small-scale gardens and the perishable nature of the green leaves are the primary reasons for their woes.

While the government has already sanctioned a 25 percent subsidy to set up micro-small processing units for the STG’s gardens, the industry body has asked the minister to step up the monitoring process by the Tea Board while procuring or buying the processing machines, besides expressing other concerns.

“There are nearly 52 companies which have mushroomed to sell their machinery to the micro-small processing units despite having no credentials to produce good quality machines. The Tea Board need to check their quality and durability before disbursing any subsidy,” Chakraborty said.

The ministry had allocated Rs.200 crore ($30 million) during the 12th Five-Year Plan (2012-17) for the development of the country’s small tea planters. The small tea growers are however wary about the machinery subsidy reaching the BLFs or gardens.

“The first priority for the subsidy needs to be the collectives set-up by STGs and the proposed factories need to be given only to the actual small tea planter who has the capacity to process his own yield,” Chakraborty said.

Tea growers in the region said ensuring this will not replicate the existing scenario between the STGs and BLFs.

According to CISTA, in case the factories are allotted to planters who do not have sufficient cultivable area or yield, the planter in the long run may himself become another BLF which may further jeopardize the trade.

The Tea Board has also taken steps to secure the interests of small tea growers.

“We have introduced the minimum benchmark price which defines the minimum price payable to the STGs for green leaf purchase. This varies across regions and violation of the prescribed price may eventually result in cancellation of a factory’s license,” Chandra Shekhar Mitra, deputy director of tea development at the Tea Board, told IANS.

To promote tea output, the Tea Board has also abolished the compulsory notarised declaration on cultivation practices, standards and management of personnel from tea gardens to avail of the subsidies and replaced this with self-attested declarations.

(Avishek Rakshit, IANS)

Click here for reuse options!
Copyright 2015 NewsGram

Next Story

Reasons Why India Has Become a Call Center Hub

Experts are expecting the industry to grow considerably in the coming years on account of a steady influx of foreign investors

India is one of the largest call centre hubs in the world. Pixabay
India is one of the largest call centre hubs in the world. Pixabay
  • India has become a call center hub
  • In past few years, the industry has seen a drastic growth
  • There are several reasons which are making this industry flourish in India at such a fast pace

For over a decade, the call center industry in India has reached at least US$710 million in revenue. Experts are expecting the industry to grow considerably in the coming years on account of a steady influx of foreign investors.

At present, there are a lot of call centers in India and nearly every multinational company has outsourced their customer service to the country. Call centers, after all, can help in terms providing better customer outreach and flexibility according to More so, it has become essential for companies to set up call centers in India as a means to lessen costs and, more importantly, achieve better growth.

UP Investor Summit saw the launch of app e-Saathi.
This upsurge in the industry is providing many people with jobs. Pixabay

Indeed, it’s not so hard to think about the reasons why India has been preferred as a call center hub by a lot of foreign corporations. For a fact, these reasons are too obvious to begin with.

Government support

Ever since it lifted obstacles that have gotten in the way, the Indian government was able to prioritize the growth of the call center industry as an important economic driver, and it has continued to do so today. With such a strong backing from policymakers, the business process outsourcing environment in the country continues to prosper.

 A competitive workforce

The first thing that’s on this list is the Indian workforce itself. A lot of companies are looking towards India not because it’s cheaper to set up a CRM arm there. It’s the Indian employees themselves that encourage companies to invest. What with a great wealth of skilled and professional workers, India is a powerhouse when it comes right down to supplying qualified individuals to the job of engaging clients from overseas.

Also Read: 7 Pro SEO Tips for Small Businesses

From text to graphics, this software does it all. Pixabay
A competitive workforce is another reason for the upsurge of call centre industry in India. Pixabay

English proficiencies

But aside from the abilities of Indian workers along the lines of customer service, it is their capacity to speak English is what drives companies from Canada and the United States to expand their operations across the subcontinent. Language, after all, is an important factor of effective CRM, and with an Indian workforce, companies can get a competitive edge.

 An effective training environment

One reason why Indian call center workers are valuable is that they are constantly trained. Nothing else can provide better results than a worker who has just updating his skills through re-training. For foreign investors, this has been one of the most notable reasons  they prefer to establish a foothold in India.

Investments in IT

Apart from being a call center hub, India has also been regarded as one of the world’s most important tech hubs, standing side by side with Silicon Valley. Recent forays into the IT industry has introduced several innovations that have also impacted other industries as well. Call centers are not exempted from these disruptions since they are currently reaping the benefits of updated technologies and infrastructure.

Also Read: ‘WhatsApp Business’ Now Available On Android In India

Cloud networking is also a great way of lessening the work burden. Pizabay
Investment in IT and Infrastructure is increasing the number of call centers in India. Pixabay

There are still a lot of reasons that can very well define the successes of the Indian call center industry. What’s important is that the industry enjoys a large share of the global call center pie, providing employment and driving growth for the years to come.