GS 3 – Economy
Key Highlights
- In 2000, Nilgiris tea growers protested against falling Green Tea Leaves (GTL) prices, which led to violence and the cancellation of the Ooty Flower Show.
- A seminar on September 4, 2000 attempted to address the crisis, but 25 years later, solutions remain unresolved.
- The Nilgiris tea sector comprises around 46,481 small growers cultivating 34,408.85 hectares.
- Growers demand:
- Minimum GTL price
- Base auction price
- Essential commodity status under the Ministry of Agriculture
Sectoral Breakdown
- Reasons for the crisis:
- Excess dependence on Russian exports
- Decline in quality management
- Auction malpractices and adulteration
- Neglect of domestic markets
- Historical context:
- Between 1985–1995, Nilgiris tea area grew by 36%, supported by Soviet demand.
- The USSR collapse and Rouble devaluation aggravated the downturn.
- Structural issues:
- Tea factory capacity exceeds double the crop output, reducing GTL quality.
- At the Coonoor auction centre, unethical practices emerged: growers taking advances from brokers and supplying at pre-fixed rates.
Tea Production in India
- Tea is one of India’s major plantation crops and a key export commodity.
- India is the second-largest producer of tea in the world after China.
- Tea contributes significantly to employment, rural income, and foreign exchange.
Major Tea-Producing States
| Region | States | Type of Tea |
| Assam | Assam | Assam tea (black tea, strong, malty flavour) |
| Darjeeling | West Bengal | Darjeeling tea (black tea, light, aromatic, “Champagne of Teas”) |
| Nilgiri Hills | Tamil Nadu, Kerala | Nilgiri tea (black tea, fragrant, brisk) |
| Kangra Valley | Himachal Pradesh | Kangra tea (black and green tea, aromatic) |
| Other minor regions | Tripura, Sikkim, Meghalaya | Regional teas with niche markets |
Climatic and Soil Requirements
- Climate: Tropical to subtropical; temperatures 21–30°C.
- Rainfall: Annual rainfall of 150–300 cm, evenly distributed.
- Soil: Well-drained, loamy, acidic soils with rich humus content.
- Altitude:
- Darjeeling: 600–2000 m (highland tea)
- Assam: 50–200 m (lowland tea)