Jorhat: The Tea Association of India (TAI) has urged the Assam government to address critical concerns related to land, wages, and imports before proceeding with key policy decisions impacting the tea sector, cautioning that unresolved issues could affect the industry’s long-term sustainability.
Addressing the 37th Biennial General Meeting of TAI’s Assam Branch in Jorhat, the Association’s president, Shailja Mehta, said the proposed land patta distribution to tea garden workers, though well-intentioned, requires careful evaluation.
“While we appreciate the intent of the state government to provide land patta to tea garden workers, we respectfully request that key concerns be considered before implementation,” Mehta said.
She pointed out that a significant portion of tea estate land is currently mortgaged as collateral, and any transfer could lead to legal and financial complications. She also noted that existing laws, such as the Land Ceiling framework, apply only to land and not to company-built assets like labour quarters.
“Adequate compensation should therefore be ensured under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013,” she said.
Mehta further underlined that under the Occupational Safety, Health and Working Conditions Code, 2020, estate managements remain responsible for housing and welfare amenities.
“Transfer of land without corresponding legal amendments may lead to continued liability on management,” she added, urging the state government to address these issues before rolling out the policy.
Following the land issue, the Association flagged the growing wage burden as a major concern for the industry. With labour costs accounting for nearly 60 per cent of the cost of production, TAI said recent changes under the new labour codes could further strain the sector.
“The Code on Wages limits the recognition of in-kind benefits to 15 per cent of total remuneration for minimum wage calculation. However, the tea industry continues to bear substantial responsibility for providing welfare benefits in kind,” the president said.
“This leads to duplication of financial burden and affects sustainability. We request that in-kind benefits be fully recognised for wage computation and that welfare responsibilities be aligned with national flagship schemes,” she added.
TAI also raised concerns over increasing imports of low-cost teas, stating that these are impacting domestic price realisation and the credibility of Indian tea in global markets.
“Low-cost imported teas are being blended with Indian teas and exported as Indian-origin instead of multi-origin blends. Further, a portion of such imports is reportedly entering the domestic market, bypassing applicable duties,” she said.
The Association called for the discontinuation of duty-free imports under the Advance Authorisation and SEZ provisions, suggesting that imports should be allowed only against full duty payment with drawback benefits on re-export.
On the broader industry scenario, TAI highlighted that rising input costs, particularly wages, have not been matched by corresponding increases in tea prices. It also highlighted a demand-supply imbalance, with production increasing significantly over the years while domestic consumption remains relatively low.
Climate change was identified as another major challenge, with erratic rainfall, temperature fluctuations, and rising pest infestation already affecting tea production in Assam.
On exports, the Association noted that India recorded a strong performance in 2025, with shipments touching around 280 million kg. However, it cautioned that ongoing geopolitical tensions in key markets, particularly in the Middle East, could impact export prospects going forward.
Mehta also flagged delays in subsidy disbursement under the Assam Tea Industries Special Incentive Scheme (ATISIS), 2020. Referring to a Finance Department notification issued in November 2025, she said that making disbursements subject to annual budget availability has resulted in pending payments to eligible applicants.
In this context, the Association urged the state government to release pending subsidies at the earliest and ensure policy stability.
Emphasising the need for coordinated action, the TAI president said, “We need concentrated efforts from all stakeholders, along with policy support from both the Central and state governments, to overcome these challenges and make the industry sustainable.”
The Association maintained that timely intervention on land, wages, and import-related issues will be crucial in safeguarding the interests of tea producers as well as the livelihoods dependent on the sector.