• India Reviews Raw Leaf Price-Sharing Formula

    India's formula for small tea growers (STGs) and bought leaf factories (BLFs) determines split of auction prices
    India’s small tea growers (STGs) and bought-leaf factories (BLFs) split the average auction prices within growing regions according to a formula last revised in 2013.
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    India Tea Board to Review Tea Price-Sharing Formula

    By Dan Bolton

    Raw leaf price sharing, implemented in 2004 and revised in 2013, protects tea smallholders and ensures that bought leaf factories (BLF) retain enough of the final auction price to operate profitably.

    This week the Tea Board of India hired consulting firm BDO India to review the current split, which varies by region—smallholders in the West Bengal tea belt currently receive 58%, and BLFs received 42% of the average auction price paid for tea. In Assam, the formula is 60% for STGs (small tea growers) and 40% for the factories that process smallholder tea.

    Bijoy Gopal Chakraborty, President of CISTA (Confederation of Indian Small Tea Growers Association), has pressed for a revision of the formula for several years.

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