Lok Sabha Question No. 430 (STARRED), answered on 2019-07-23
Subject: Minimum Support Price to Tea Growers
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Mohammad Jawed

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE, COOPERATION & FARMERS WELFARE

## LOK  SABHA STARRED QUESTION NO. 430

TO BE ANSWERED ON THE   23 RD   JULY, 2019

## MINIMUM SUPPORT PRICE TO TEA GROWERS

- *430.    DR. MOHAMMAD JAVED:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी be pleased to state:

- (a) whether the Government has any scheme to provide Minimum Support Price (MSP) to the tea growers of Bihar, particularly in Kishanganj district and if so, the details thereof;
- (b) the  amount  of  funds  allocated  for  Purnea  and  Kishanganj  districts  of  Bihar  in particular; and
- (c) whether the Government has any plan to revive Government tea factory in Bihar to support small tea growers and stop their exploitation by private tea factories?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंी

(SHRI NARENDRA  SINGH TOMAR)

- (a) to (c): A statement is laid on the Table of the House.

## STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (c) OF LOK SABHA STARRED QUESTION NO. 430  DUE FOR REPLY ON 23 RD   JULY, 2019.

- (a): No Sir, there is no Minimum Support Price (MSP) for Tea. MSP is fixed for 22 mandated agricultural crops which are not perishable and are amenable to storage.  On the other hand, tea leaves are highly perishable plantation crops and quality deteriorates with storage.  In order to ensure fair price realization to the tea growers especially the small growers, Tea Board in the year  2004  introduced  Price  Sharing  Formula  (PSF)  which  envisaged  fair  sharing  of  sale proceeds  between  the  grower  and  the  manufacturer  in  a  certain  ratio  based  on  the  cost  of production of green leaf and made tea. Further, in order to ensure proper implementation of PSF, Tea Board also notifies Minimum Benchmark Price (MBP) for each tea growing districts including Kishanganj at the beginning of the every month.
- (b): The Tea Board under the Tea Development & Promotion Scheme is extending financial assistance  to  the  tea  industry  in  the  country,  including  the Purnea  and  Kisanganj Districts  of Bihar,  for  uprooting  and  replanting,  rejuvenation,  pruning,  irrigation,  assistance  to  Self  Help Groups (SHGs), field mechanization, assistance to Farmers' Producers Organizations (FPOs), annual award for SHGs & FPOs, setting up of new factories by FPOs, setting up mini factories, workshop/training, development & promotion of organic farming/organic conversion, etc.
- (c): The Tea Board has reported that there is one tea factory namely 'DRDA Tea Factory' in the Kishanganj District owned by the State Government of Bihar.  The said Government Factory was  established  in  the  year  2004  under  Swarnajayanti  Gram  Swarojgar  Yojana  at  Kalidas Kismat, Pothia Block, Kishanganj and is functioning. At present the factory is being operated by M/s Sancheti Tea Co, a Proprietorship firm after obtaining it for lease for 10 years w.e.f the year 2015 from DRDA, Kishanganj, Government of Bihar.

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