Tea is a plantation crop, mostly grown in foothills of Eastern Himalayas and hilly slopes of Nilgiri. India is not only second largest exporter of Tea but also has a significant role in domestic market.
India Tea industry from colonial to present times:
- The birth of Indian tea industry was marked by the discovery of indigenous tea plants in Assam in the early 19th century
- During second half of 19th century Indian Tea association was set up.
- Later Indian Tea act 1933 with further amendments, Plantation Labour Act 1955 has been passed.
Archaic laws-Plantation Labour Act 1955
- Predicated on a low-paid, stringently managed manual labour, health and education are firmly controlled by their employers continue to be in force.
- With passing times Tea industry management is unable to meet the growing expenditure to raise in labour costs and workers continue to keep demanding better wages and living conditions.
- Archaic laws have resulted in continuous violation of workers right to association
- It doesn’t address the fluctuating Tea prices
- There is demand for exemption of tea from export cess and import subsidy to tea plantation machinery
Challenges to Indian Tea industry:
Management concerns:
- Labour issues: Being labour-intensive, there are repeated demands for better pay and working conditions.
- 50% of the workforce comprising women there is need to pay heed to women health issues.
- Only 1% of plantation is organized plantation
- Quality concerns: Deteriorating quality due to increased use of pesticides
Market:
- Fluctuation in demand: Eg: Britain, once India’s biggest tea buyer, has acquired a taste for African tea.
Governance:
- Structural constraints in management by tea board
- Lack of proper pricing regime
Way forward:
- Humanitarian aid is needed for malnourished workers on failed estates.
- Companies must be held accountable for the non-implementation of the Plantations Labour Act
- Single act replacing multiple central and state level acts governing the plantation industry
- “Tea Development & Promotion Scheme” through the Tea Board as in 12 FYP
- Amending the Plantations Labour Act to extend the benefits available to other facilities to planations, to check price fluctuation.
A closer look is required if the Indian Tea industry is to be revived so that it regains its pre-eminent position. Worker-owned company model where workers have a stake in the progress of the industry is needed. Companies would need to take more innovative ways so as to make the industry profitable.
