“Factories fixed price of tea leaves by categorizing them into three standards. Earlier, they were providing Rs 20 to Rs 26 per kg,” said Dambar Katwal, a farmer from Kanyam. [break]
The decision to lower prices has made negative impacts on farmers as the decision has come amid decline in production. Insufficient rainfall during winter had reduced the production of tea leaves and the fall in price at this situation is making things difficult for farmers.
“Generally, price should go up when there is decline in production. But the scenario is different this time around. The decision has put us in a really difficult situation,” said Dhan Bahadur Yangmali, a farmer from Fikkal, said. Yangmali said the price of tea leaves, which was around Rs 40 per kg eight years ago, has been falling continuously.
However, Hari Timilsina, director of Ilam Tea Producers, is of the view that the price has decreased due to the reduction in market price of packaged tea.
“Tea produced in Ilam is exported to neighboring Indian cities such as Siliguri. We have no alternative to lowering price of green leaves as the market price has decline there,” he added. He said price of tea has reduced by IRs 40 to 50 in some Indian states.
Farmers too are left with no other option but to sell their products to local industries at reduced price.
Around 4,500 farmers in the district produce 100,000 kg of green tea leaves every day.
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