Kolkata, Nov. 14 -- Five major Indian tea industry associations have backed a recommendation by a Tea Board of India committee to introduce a Minimum Sustainable Price (MSP) for tea, citing a widening gap between production costs and market prices. The Tea Board committee has recommended a composite index reflecting wage movements and the Consumer Price Index (CPI) for determining the benchmark MSP. It has also proposed periodic reviews of the benchmark to ensure that the pricing framework remains aligned with changes in production costs and inflation. Senior representatives from the Indian Tea Association (ITA), Tea Association of India (TAI), United Planters' Association of Southern India (UPASI), Confederation of Indian Small Tea Growers Associations (CISTA), and Federation of Indian Tea Manufacturers Association (FITMA) outlined their support for at a joint press conference in Kolkata earlier this week.. Together, the five bodies represent segments across the tea value chain, including organised tea estates, small growers, and processing factories. The five associations have urged the Union Ministry of Commerce to take favourable note of the committee's report and notify the Minimum Sustainable Price at the earliest to protect millions of livelihoods dependent on the sector. India is the world's second-largest tea producer, generating between 1,350 million and 1,400 million kilograms annually. However, industry figures show that while input costs have climbed at an estimated compound annual growth rate (CAGR) of 10% to 14%, tea price realisations have increased by only 2% to 3%. Industry leaders warned that this growing disparity has weakened producers' ability to improve productivity, maintain quality standards, and sustain operations. Labour expenses account for roughly 60% of total tea production costs. Producers anticipate further financial pressure once the central and state governments notify floor wages under the Code on Wages. C.K. Dhanuka, Chairman of Dhunseri Tea and Industries, noted that tea price realisations have remained largely stagnant despite mounting cost pressures. "A Minimum Sustainable Price will help bring realisations in line with costs, so that the industry can accommodate wage revisions, protect employment and [maintain] the competitiveness of Indian tea," he said. ITA chairman Suneel Singh Sikand described the proposal as an important policy intervention to address structural challenges. "Ensuring remunerative returns to producers is critical to sustaining operations, facilitating investment in replantation and productivity enhancement and securing the industry's long-term sustainability," Sikand said. TAI President Shailja Mehta added that stronger financial viability would enable estates to invest in modernisation, uphold quality benchmarks, and respond effectively to evolving market requirements....