‘Catastrophic decline’ in Assam tea: Opposition leader seeks Rs 5,000-crore bailout from PM

Assam's tea industry is allegedly facing an unprecedented crisis with production falling by 7.8 per cent, prompting Leader of Opposition Debabrata Saikia to write an urgent letter to Prime Minister Narendra Modi demanding a Rs 5,000-crore revival package.

In his letter dated September 18, Saikia detailed how tea leaf prices have crashed from Rs 52 per kilogram to as low as Rs 15 per kilogram—well below the production cost of Rs 25-27 per kilogram. The sector, which produces 55 per cent of India's total tea output and employs over 10 lakh workers, is experiencing what Saikia described as a "catastrophic decline."

Small tea growers are bearing the brunt of the crisis. Saikia wrote that they are receiving only Rs 13-15 per kg for green tea leaf while processing costs alone stand at Rs 19-20 per kg. "Small tea growers are in great trouble. They produce nearly half of India's tea but get only about 20 rupees for one kilogram of green leaf, while the cost of making tea is much higher," he stated in the letter.

Climate change has compounded the industry's problems. Saikia noted that temperatures in crucial tea-growing regions like Jorhat have reached 40-41°C, substantially exceeding the optimal 27°C required for quality tea cultivation. He cited Food and Agriculture Organisation warnings that climate change could reduce India's tea-growing areas by up to 40 per cent by 2050.

The traditional auction system is breaking down, according to Saikia's letter. He wrote that only 44 per cent of India's 1,350 million kg annual production now goes through auctions, down from more than 50 per cent two years earlier. Unsold lots at Guwahati auctions have jumped to 36 per cent in 2025-26 from 23 per cent the previous year, while Kolkata saw an increase from 18 per cent to 26 per cent.

Import pressure has intensified the crisis. Saikia highlighted that tea imports have surged 82 per cent to reach 53 million kg in 2024, with imported CTC tea landing at just Rs 130-140 per kg—significantly undercutting domestic production costs.

In his letter, Saikia accused the BJP government of betraying tea workers through unfulfilled wage promises. He pointed out that while workers in Kerala earn Rs 470 per day, Karnataka Rs 480, and Tamil Nadu Rs 480+, Assam tea workers receive only Rs 220-250 per day despite commitments dating back to 2014 to raise wages to Rs 350-351.

Saikia wrote that despite Modi's recent visits to Assam, including the inauguration of projects worth over Rs 19,000 crore in September 2025, where the PM spoke about tea gardens and recalled his association as a "chaiwallah," no comprehensive package for the tea sector was announced.

The opposition leader criticised both the Tea Board of India and the Assam State Government for what he termed a "passive stance" despite mounting evidence of industry distress. He noted that the Assam Tea Planters' Association has issued an "urgent call for sweeping reforms," with Chairman Samudra P. Baruva emphasising that "the time to act is now."

Saikia's proposed revival package includes a Rs 2,000-crore interest-free working capital fund, a Rs 1,000-crore wage support fund, and restoration of Rs 50-crore annual funding to the TOCKLAI Tea Research Institute. He also demanded the implementation of a minimum support price of Rs 25 per kg for green leaf.

In his letter, Saikia wrote: "This is not merely an economic issue but a constitutional obligation to protect livelihoods and honour democratic promises. The tea community has waited over a decade for promised reforms while watching their heritage industry collapse."

The industry supports 35 lakh people, including dependents and contributes 15 per cent to Assam's GDP. Saikia emphasised that Assam tea has been synonymous with India's global identity since 1823, making the current crisis a threat to both livelihoods and heritage.