Tea growers suffer from capitulation of tea price

(KPL) Tea growers in Phongsaly province felt cornered as they were not able to find a solution to their problem of finding any buyer for their tea and to add to their worries the market price of tea in the world has dropped drastically.

The tea industry is labour intensive, many people are engaged in it and it gives them a regular income, thus helping to reduce poverty, while at the same time some money from this industry helps to fill the coffer of Phongsaly. .

The tea workers said yesterday that they did not have the faintest idea that one day they would have to leave this industry and when they found out about the slump in the price of tea last year they suddenly realize that they have to confront the harsh reality of having to look for alternative jobs.

Phongsaly’s Industry and Commerce Office told KPL News yesterday that when the tea growers found out that the price of tea capitulated in 2008, dropping from 17,000 kip per kilogram to just 4,000 kip per kilogram they felt that they have to find jobs outside the tea industry.

Mr Ounkeo Kong, Head of Industry and Commerce Office, Phongsaly province, said yesterday that the price of tea in the world’s market would continue to drop in 2009 because of the worsening economic situation in the world.


He also said that the consumption of tea in the world has declined because consumers are cutting down on their expenditure.

However, the government, Mr Ounkeo said does not still have a clear policy on how to assist them, such as offering the tea growers a guaranteed price.

In the past years, tea growers in Phongsaly province relied on two countries, China and Malaysia to move their tea and the import companies of these countries offered the growers prices that fall within the range, 15,000 kip to 35,000 per kilogram.