Planters’ body ask Assam Govt to address ‘administrative’ concerns for providing land patta

Planters’ body, Tea Association of India (TAI), has urged the Assam Government to address its concerns regarding the transfer of housing line land to workers under a new amended law.

While appreciating the Government’s intent to provide land patta to the tea garden workers, it called for clear guidelines in the matter so that the “administrative” concerns are taken care of.

Speaking at the 37th Biennial General Meeting of TAI, Assam Branch in Jorhat on Saturday, TAI president Shailja Mehta said the concerns of the industry should be considered before implementation of the new law.

She pointed out that in many cases, tea garden land is mortgaged as collateral with banks, and transfer may create financial and legal complications.  Further, the Land Ceiling Act applies only to land and not to company-built assets such as labour quarters.

“Adequate compensation should therefore be ensured under the Right to Fair Compensation and Transparency in Land Acquisition Rehabilitation and Resettlement Act 2013,” Mehta stressed.

The TAI president also pointed out that under the Occupational Safety, Health and Working Conditions Code 2020 (earlier Plantations Labour Act 1951), management remains responsible for housing and welfare amenities.

“Transfer of land without corresponding legal amendments may lead to continued liability on management. We therefore sincerely request the State Government to address these issues before implementation,” she added.

Echoing her, the chairman of the Assam branch of TAI G S Pahwa said, “Our concerns that arose were more administrative in nature, given the Occupational Safety, Health and Working Condition Code. We look forward to clear guidelines from the Assam Government as to how to amalgamate the two legislations for the benefit of the industry and the state.”

“We respectfully submit that balanced and consultative policymaking will best serve the long-term interests of tea garden workers and the tea industry,” the chairman added.

TAI president Mehta further said the recent changes under the four Labour Codes implemented from November 2025 are likely to significantly impact the tea industry, where nearly 60 per cent of the cost of production is labour-related.

She said that the code on wages limits the recognition of in-kind benefits to 15 per cent of total remuneration for minimum wage calculation.

However, as the tea industry bears substantial responsibility for providing welfare benefits in kind, the TAI has urged that all in-kind benefits be fully recognised for wage computation purposes.

Mehta also requested the Government to release all pending subsidy payments under the Assam Tea Industries Special Incentive Scheme (ATISIS 2020), as the Finance Department has issued a notice that the benefits will be disbursed only subject to annual budget availability, with no carry-forward provision.

The TAI president also expressed apprehension that the country’s tea export could face “pressure” if the ongoing geopolitical tensions in the region continue, especially the closure of the Straits of Hormuz.

She said the country’s tea exports had performed “exceptionally well in 2025, reaching a record level of about 280 million kg, with export earnings rising to nearly `8,488 crore”.

It was largely supported by strong demand from key markets such as Iran, Iraq, the United Arab Emirates and China, and a significant portion of the growth was driven by increased exports of Orthodox teas to the Middle East, which continues to remain a crucial destination for Assam teas.

“However, the ongoing geopolitical tensions in the region are a matter of concern. Any disruption in these traditional markets could affect export volumes, payment cycles, shipping routes, and price realisations,” Mehta said.

“Amidst reports of closure of Straits of Hormuz, the prospect of Indian Tea exports do look grim as of now,” the TAI president added.

She stressed that, given the industry’s growing dependence on these destinations in recent years, there is a genuine apprehension that India’s export performance in 2026 may face pressure if the situation persists.

“In this context, there is a need for continued policy support and market diversification efforts to safeguard the momentum achieved in tea exports and protect the interests of producers,” Mehta stressed.

Among measures sought by the planters’ body is a minimum sustainable price for Made Tea, address quality issues, including that of low-cost imported teas, promotion of Indian Teas, and agritech innovation.