The Central Government is planning a comprehensive review of the tea plantation sector and has begun discussions with the industry in this regard.
The aim is to strengthen the prevailing policy and the various schemes that are now available to the sector to bring vitality to the industry. Over a billion kg of tea is produced and the industry supports 30 lakh people in some of the lesser developed States. Women constitute half the workforce.
India earns over Rs.1,000 crore from tea exports although balancing exports and meeting the rising domestic demand has remained a challenge amid the adverse effects of climate-change. Prolonged droughts and pest attacks are already impacting productivity and cost of tea production.
The industry had already submitted to the government a policy note, which touched upon the various aspects. It took into consideration the issue of price fluctuations as nearly 60 per cent of the commodity was sold through commodity auctions.
As the organised industry struggles to protect its revenues, small tea growers (STG) have now become a force to reckon with, accounting for nearly 40 per cent of the production. Big corporates are peeved by the fact that while they have to bear a fixed cost as they are governed by the provisions of the Plantation Labour Act, no such mandate covers the STG sector. Under the 1956 Act, the organised industry has to provide various welfare measures to the pluckers. The industry is keen that the schemes run by the industry regulator, the Tea Board, be reviewed. It has urged the government to enhance the subsidy given for orthodox tea production so that the cost-differential between production of orthodox and CTC tea be covered.
