Abstract:
To assist the Small Tea Growers (STGs) during unrealistic price
fall, the Ministry of Commerce and Industry has initiated Price
Stabilization Fund (PSF), a participatory scheme where a price band is
constructed around the average domestic auction price of made-tea,
based on seven years, moving average of prices in international market.
Though this scheme is in operation for the last 7-8 years, it has neither
been able to reach the targeted number of STGs, nor to get popularity
among STGs. To understand such poor penetration and low impact of
PSF scheme, primary survey in major tea growing states in north east/
east India (Assam, West Bengal and Tripura) has been done. Based on
the output of the survey and from the understanding of STG ecosystem
and their need/ aspiration for a more dynamic PSF, a model has been
designed that could have wider reach and acceptance among the small
tea growers.
