Tea Association of India urges Assam govt to clarify land transfer policy for garden workers

The Tea Association of India (TAI) has urged the Assam government to address key concerns regarding the transfer of housing land to tea garden workers under a newly amended law.

 

Speaking at the 37th Biennial General Meeting of TAI’s Assam branch, president Shailja Mehta welcomed the government’s intent to provide land pattas to workers but stressed the need for clear guidelines to address administrative and legal complexities.

 

She pointed out that in several cases, tea garden land is mortgaged with banks, and transferring ownership could create financial complications. Mehta also noted that the Land Ceiling Act applies only to land and not to company-built assets such as labour quarters, calling for adequate compensation under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.

 

Highlighting legal concerns, she said that under the Occupational Safety, Health and Working Conditions Code, 2020, management remains responsible for housing and welfare amenities. Any land transfer without corresponding legal amendments could result in continued liability for tea garden management.

 

Echoing similar concerns, TAI Assam branch chairman GS Pahwa said the issues were largely administrative and called for clarity on how different legislations would be aligned for the benefit of both the industry and workers.

 

The association also raised concerns over recent labour code changes implemented in November 2025, noting that nearly 60 per cent of tea production costs are labour-related. It urged the government to fully recognise in-kind benefits in wage calculations, rather than limiting them to 15 per cent.

 

Additionally, TAI requested the release of pending subsidies under the Assam Tea Industries Special Incentive Scheme (ATISIS 2020), warning that delays could affect the industry’s financial stability.

 

On exports, Mehta said India’s tea exports reached a record 280 million kg in 2025, generating nearly Rs 8,488 crore. However, she expressed concern over geopolitical tensions and potential disruptions in key markets such as Iran, Iraq, the UAE, and China, especially amid reports of possible closure of the Strait of Hormuz.

 

She cautioned that any disruption could impact export volumes, shipping routes, and pricing, adding that India’s tea export performance in 2026 may face pressure if the situation persists.

 

The association called for continued policy support, market diversification, and measures such as a minimum sustainable price for made tea, promotion of Indian tea, and adoption of agritech innovations to safeguard the sector’s future.