Five Tea Industry Associations Support Government Proposal for Minimum Sustainable Price

Five tea industry associations have officially welcomed a government-appointed committee's recommendation to implement a <b>minimum sustainable price</b> for tea. This initiative aims to mitigate the financial strain caused by production costs rising significantly faster than market prices. The proposed benchmark will be linked to wage movements and consumer price indices to ensure long-term viability for producers. Industry data indicates that while tea prices have grown at a compound annual rate of 2-3 percent, input costs have surged by 10-14 percent annually. Labour costs currently account for approximately 60 percent of total production expenses. Producers are now urging the Ministry of Commerce to notify the new pricing mechanism as soon as possible This move is expected to help the industry absorb future wage increases and support essential investments in tea production.