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Tea, Coffee, Rubber and Spices

Commodity Boards: Tea, Coffee, Rubber and Spices

What India's commodity boards do for plantation crops, from research and promotion to regulation, and debates about their role.

India created special boards for plantation crops under the Ministry of Commerce.

The boards

  • Tea Board (1954).
  • Coffee Board (1942).
  • Rubber Board (1947).
  • Spices Board (1987).

What they do

  • Research on varieties and farming methods.
  • Extension services for growers.
  • Export promotion and branding abroad.
  • Quality standards.
  • Subsidies for replanting and processing.
  • Regulation, like licences for tea auction participants.

Coffee liberalisation

Until the 1990s, the Coffee Board pooled and sold all coffee; growers couldn’t sell directly. Liberalisation in 1996 let growers sell freely, improving prices for many.

Reform debates

  • In 2023-24, the government proposed replacing old plantation laws with new bills to reduce regulation.
  • Critics argue boards need more focus on small growers.
The pooling era

Before 1996, a coffee grower had to hand over his crop to the Coffee Board's pool and wait for payment. After liberalisation, he could sell to the highest bidder.

Thinking boards only regulate

They also fund research, extension, branding and exports.

Key takeaways
  • Boards exist for tea, coffee, rubber and spices.
  • They support research, extension, quality and exports.
  • Coffee pooling ended in 1996.
  • Reforms aim to modernise and reduce regulation.
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