Crisis and revival of Assam Tea with special reference to small tea growers

Dr Pradip Baruah

(pbaruahdr@gmail.com)

The tea industry of Assam, one of the oldest and most iconic sectors of the state, is facing an unprecedented crisis. This is not merely an industrial problem but a social and economic one, for nearly seven and a half lakh tea garden workers, about two lakh small tea growers, and countless others in allied sectors like bought-leaf factories, traders, suppliers, and dealers depend directly on the fortunes of tea. Assam produces around 11 to 13 per cent of the world’s tea and about 52 per cent of India’s total, making it one of the largest tea-growing regions on the globe. Small growers alone contribute over half of Assam’s production, yet their livelihoods hang in a delicate balance. The future of these workers, growers, and their families is tied intimately to the future of tea, which has long been the backbone of Assam’s economy and identity.

Today, the tea industry finds itself trapped between falling prices and rising costs. Overproduction over the years has led to a mismatch between demand and supply, pushing average auction prices below the cost of production. Small growers, who lack bargaining power, suffer the most as they are compelled to sell their green leaf cheaply to bought-leaf factories. The cost of input such as fertilizers, agrochemicals, and wages keeps climbing, squeezing margins further. Climate change compounds the pressure, with erratic rainfall, prolonged droughts, and rising temperatures inviting new pests and diseases and making the existing ones virulent and difficult to control. Strict regulatory restrictions on available agrochemicals and recurring concerns about maximum residue limits often put Assam teas at a disadvantage in international markets. Meanwhile, low-priced imports from Kenya, Nepal, and Vietnam have entered the Indian market duty-free, blended with Indian teas, and sold abroad as of Indian origin, damaging Assam’s reputation for quality and deteriorating the availability of Indian tea.

There are associated deep-rooted structural issues. Branding and marketing remain weak, domestic consumption is growing slowly, and the gap between premium Assam teas and cheaper, plainer varieties is widening. Certification schemes like organic and fair trade are tough for small growers to pursue, leaving them excluded from niche high-value markets. Many estates struggle under bank debt, while young workers increasingly migrate to southern states or abandon the industry altogether, unwilling to accept the difficult, present pay structures of their parents. Research and development have not kept pace with changing needs, skill development among workers has much to achieve, and there is not enough focus on diversification or tourism despite the region’s natural potential.

The pathway to revival is outlined here. The first and most important step is an uncompromising focus on quality. Assam’s fame has always rested on its rich, strong liquor, and only by ensuring minimum standards in fine leaf percentage and refusing to compromise on quality can it sustain its reputation. Better quality teas consistently fetch higher prices, while poor quality erodes credibility. Alongside this, the industry must urgently tackle rising costs through integrated pest and nutrient management, regenerative agriculture, vermicomposting, use of biochar, and indigenous technical knowledge. Sustainability is no longer optional but the very basis of survival. Fast-tracking the approval of safe and effective agrochemicals under the Plant Protection Code is critical.

Climate change mitigation needs a practical approach. Planting sufficient shade trees across plantations and investing in soil health, irrigation, and rainwater harvesting can help estates withstand unpredictable weather. Diversification into crops like ginger, turmeric, black pepper, moringa, lemon, and high-value timber can provide short- and long-term income stability, as seen in countries like Vietnam. Promoting tea as a health and wellness drink backed by scientific evidence is equally vital. Misconceptions about tea consumption, even within India, need to be countered through targeted campaigns to increase domestic demand.

At the same time, the brand “Assam Tea” must be promoted aggressively on national and international platforms. Speciality teas, handmade teas, and organic teas produced by small growers need exclusive marketing support, including help with packaging, branding, and e-commerce. Organic certification should be subsidized and linked with guaranteed market linkages so that growers are not left stranded after investing in certification. Digital platforms and online marketing can connect small producers directly to buyers worldwide, but they need specific training for that.

Subsidies and mechanization support are essential to improve efficiency, especially as labour shortages worsen. Machines for plucking, pruning, spraying, and other field operations must be encouraged, alongside proper training for their use. Worker skill development is also very important. Motivating and upskilling workers will not only improve productivity but also restore dignity to plantation work. Renewable energy, particularly solar, should be adopted widely to reduce costs and carbon footprint, with government incentives to ease the transition.

One of the most promising yet neglected avenues is tea tourism. Assam’s sprawling green plantations, heritage bungalows, and rich tea culture present a unique opportunity for immersive tourism experiences. Packages that combine garden stays, tea processing tours, cultural performances, tea fairs, and tasting sessions could bring global tourists to Assam tea while generating income for local communities. Small organic growers can develop eco-tea tourism models that showcase sustainable farming while supporting rural livelihoods and conservation.

Long-term revival demands higher spending on research and development and direct government support. Universities and research institutes should be empowered to provide practical, science-backed solutions to pest control, fertilizer use, mechanization, and quality improvement. As proposed by the author, the International Tea Knowledge Centre in Guwahati could emerge as a global hub for tea research, interaction, networking, culture, and tourism, placing Assam at the forefront of global tea thought leadership. At the policy level, the unregulated import of duty-free teas should be stopped. Imports should be traceable, taxed upfront, and strictly restricted to verifiable re-export. This will protect both the domestic market and Assam’s global reputation. The idea of introducing a minimum support or sustainable price for tea, as exists for other crops, also deserves serious consideration to safeguard small growers.

The challenges facing Assam’s tea industry are daunting, but they also open doors for reform and renewal. With quality as the cornerstone, supported by sustainability, diversification, branding, mechanization, worker empowerment, and strict trade regulation, Assam can continue its rightful prime place of pride in the world of tea. The industry’s survival is not just an economic necessity but a matter of identity, pride, and heritage. Assam tea is more than a commodity; it is a symbol of resilience, culture, and global excellence – the identity of Assam itself.