Despite the massive reduction in prices at auction, bulk tea export prices one year later stood at Rs. 1,000 daily wage irrespective of tea prices or productivity. Low prices have already resulted in factory closures, and even smallholders are facing severe difficulties. - Tea producers under pressureIn that regard, the PA strongly cautioned all stakeholders against entering into a short-sighted ‘race to the bottom’ in relation to tea prices. While these and other perennial challenges have helped to keep prices low, these dynamics alone are insufficient to explain the widening gap between auction and export prices.

Source: Sunday Times October 21, 2019 09:00 UTC