Assam Chief Secretary stresses viability of dual tea sector, calls for fair prices

Assam Chief Secretary Ravi Kota emphasised the need for a sustainable dual structure in India’s tea industry, where large organised growers and small tea growers (STGs) coexist without undercutting each other. 

Speaking at the annual general meeting of the Indian Tea Association (ITA) in Guwahati, Kota noted that Assam, India’s largest tea-producing state, accounts for nearly half of the country’s annual crop.

“The dual structure, the presence of large organised players and small tea growers, has to be viable and they must coexist without undercutting each other,” Kota said. He added that large plantations are obligated to fulfil welfare responsibilities under the Plantation Act, unlike STGs, highlighting the need for both segments to remain economically viable.

Kota also called for a minimum sustainable price for tea and suggested a fair pricing model. Regarding tea imports, he stressed mandatory disclosure of origin to ensure traceability.

Also Read: Assam government nears 2 lakh job appointments, surpassing 1 lakh pledge

ITA Chairman Hemant Bangur highlighted multiple challenges facing the industry, including price stagnation, labour shortages, and climate change. He pointed out that operations of the organised tea sector are becoming increasingly unviable due to high overhead costs, and stressed the need for a level playing field. Bangur also called for incentives for orthodox tea production and an increase in the RoDTEP (Remission of Duties and Taxes on Exported Products) rate to benefit exporters.

He further noted the impact of climate change on tea-growing regions, citing recent heavy rains and landslides in North Bengal, which comprises Darjeeling, Dooars, and Terai. Bangur urged that the Darjeeling tea industry be provided with a financial package to help it overcome the crisis.