Guwahati: The Assam Tea Planters’ Association (ATPA) – the oldest association representing the interests of ethnic tea planters in Assam- has sounded an urgent call for sweeping reforms in the tea industry.
In a press statement, Samudra P. Baruva, Chairman of ATPA, underscored the pressing need for immediate action to address the ongoing crisis affecting both large and small-scale tea growers in North India.
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“The time has come for North India to make a decisive shift toward quality,” Baruva stated. “Quality doesn’t just mean taste—it means compliance with FSSAI (Food Safety and Standards Authority of India) standards, which is crucial for restoring credibility in the market.”
Founded in 1935 by a few Indigenous tea planters of pre-Independent India, ATPA highlighted that the current market glut, driven by excessive cropping in recent months, has flooded the market with poor-quality teas. This oversupply, Baruva noted, has resulted in “crippling price realisations” for the plantation sector, which is already struggling with fixed production costs.
The ATPA chairman pointed out that, according to FAITTA (Federation of All India Tea Traders’ Associations), many teas listed at the Guwahati and Siliguri Tea Auction Centres (GTAC and STAC) failed to comply with FSSAI (Food Safety and Standards Authority of India) standards this year, adding to the industry’s challenges.
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This non-compliance has led buyers to shift toward South Indian teas and even imported teas from Africa, as packers face legal risks for sourcing non-compliant products.
“Major packeteers are losing interest in Assam and West Bengal teas, which is an alarming trend,” he warned.
Key Recommendations:
- Industry must prioritise quality to restore buyer confidence and stabilise production volumes. “Quality is the only way forward,” the chairman asserted.
- Minimum price of Rs 25 per kilogram for green leaf, with at least 40% fine count to ensure fair compensation for growers producing compliant leaf. “At this price point, Bought Leaf Factories (BLFs) will be compelled to reject substandard leaf, improving overall quality,” Baruva explained.
- While addressing problem areas, the ATPA urged the Tea Board to map and enforce quality parameters for green leaf sourced from regions like Arunachal Pradesh, Nagaland, and Bihar, which have been flagged for contributing to the quality crisis.
- Support for Small Tea Growers (STGs): ATPA recommended that the Tea Board allocate maximum funds toward quality enhancement programs for small tea growers, including subsidies for battery-operated plucking machines and other innovations that improve leaf quality.
- Export boosting
To compete with cheaper teas from countries like Kenya and Sri Lanka, Baruva called for government incentives such as transport subsidies and enhancements in RODTEP (Remission of Duties and Taxes on Exported Products).
“Exports must be incentivised to protect India’s global market share,” he emphasised. - Strict Regulation of Imported Tea:
ATPA demanded stricter controls over imported teas meant for re-export to prevent leakage into the domestic market, which undermines local growers and manufacturers. - Promoting Indian Tea
A unified industry effort should promote Indian teas both domestically and globally. “Educating domestic consumers about the quality difference in tea is essential for better realisation of premium teas,” he said.
Defending Industry Self-Regulation, the ATPA chairman also defended the industry’s recent move toward 100% dust auctions and early closures last year, describing it as a “self-regulation mechanism” aimed at improving quality and compliance. “These measures may face initial resistance, but they are vital for the long-term health of the industry,” he added.
The ATPA appealed to all stakeholders, including the government, growers, and packers, to act swiftly to safeguard the future of Assam’s tea industry. “This is not just about economics; it’s about preserving the identity and heritage of Assam,” he said.
With millions of livelihoods in Assam and West Bengal tied to the tea industry, ATPA has made its stance clear: “The time to act is now.”