Tea Industry Crisis in the Nilgiris

The early 2000s marked a significant downturn for tea growers in the Nilgiris, largely due to the declining prices of Green Tea Leaves (GTL). This crisis led to widespread protests by plantation farmers, primarily Badagas, against the government.

Key Issues and Historical Context

• Decline in GTL prices led to violent protests, highlighted by the cancellation of the Ooty Flower Show in 1999.
• The "Future of Tea in the Nilgiris" seminar was organized in 2000 to address industry challenges.
• Factors contributing to the crisis included: 
  • Over-reliance on Russian exports.
  • Poor quality management and adulteration.
  • Disrupted operations at the Coonoor auction center.

Economic and Market Dynamics

• High production costs strained growers, particularly after the USSR's collapse and the devaluation of the rouble.
• Excess factory capacity and poor GTL quality exacerbated the situation.
• Bought leaf factories succeeded in branding and direct trade, though broader market exploration is needed.

Tea Industry Statistics

• The Nilgiris tea industry comprises 46,481 small tea growers with a plantation area of 34,408.85 hectares.

Demands and Recommendations

• Growers demand a minimum GTL price, a base auction price, and recognition of tea as an essential commodity.
• Strategies proposed include: 
  • Innovation and mechanization in plucking and pruning.
  • Development of value-added products.
  • Exploring CIS countries and untapped domestic markets.

Current Trends and Future Directions

• Younger generations are moving to the IT sector, affecting traditional tea production.
• INDCOSERVE and TANTEA could become price leaders due to their significant procurement capabilities.

Expert Yukesh Saravanan emphasizes the potential for Nilgiris to produce world-class tea, urging renewed trust and strategic action among growers.