Swarup Upadhyaya
(A student of ICAR-Indian Veterinary Research Institute, Bareilly.)
Tea is an essential commodity for our state’s economy. 1.14 lakh hectares out of 3.47 lakh hectares of total tea area in the state are cultivated by the small tea growers. The total number of small tea growers in India is 2.2 lakh, out of which 1.2 lakh are in Assam. They produce more than 50% of the total tea production. (Data from the Tea Board website)
However, these growers face a multitude of challenges. These include a lack of technical guidance on best practices and technological advancements, hindering their productivity. They also face difficulties in achieving proper price realization for their crops and are not eligible to access various government welfare schemes that are meant for the farmers because tea cultivation is under the ministry of commerce and industries.
A report reveals a stark disparity in income distribution. While growers earn a mere Rs. 2.63 per kg of green leaf, green leaf agents who collect and transport the leaf to factories earn Rs. 1.86 per kg, processors or factories earn Rs. 20 per kg of made tea, and retailers earn Rs. 4 per kg. Considering that 4-5 kg of green leaf is needed for 1 kg of made tea, a small tea grower’s net income per kg of made tea is estimated to be around Rs. 10. This translates to a meagre 1.6% share of the final retail price (assuming a retail price of Rs. 600 per kg, which is the common price in the west Indian market).
Beyond the issue of low income, the growers also face challenges related to a lack of guidance on technology and best practices for managing their plantations. The impact of climate change, which they are aware of but lack the resources and knowledge to adapt to, is leading to declining production. Meeting government regulations and dealing with declining productivity due to aged bushes. The absence of a dedicated institute to provide comprehensive assistance regarding these issues throughout the state further weakens their position. Despite being the driving force behind Assam’s tea industry, small growers are often deprived of basic support in their daily operations and are exploited by agents and factories due to limited access to fair market practices.
Looking closer, the situation of Assam’s small tea growers bears a resemblance to the challenges faced by dairy farmers before Amul’s founding in Gujarat. While we may not have a ready-made Verghese Kurien for Assam’s small tea plantations, we can certainly adopt the successful cooperative model of Amul and others. This model involves village cooperatives at the grassroots level collecting milk and sending it to processing centres run by district cooperative societies that are formed by elected members of village cooperatives. The processed product is then marketed by the state federation or state cooperative society. Importantly, farmers and members may not have expertise in running machinery, marketing, or product quality testing. These tasks are handled by respective bodies through hired employees under the cooperative structure. A crucial point to note is that all three levels (village, district, and state societies) are responsible for their own profits and losses and have independence in managing their expenditures.
As the son of a small tea grower, I firmly believe that cooperative societies can be built. However, expertise and funding are key challenges. The government, through the Tea Directorate, can significantly help small tea growers. Mission-mode programmes exist for milk, palm oil, and other sectors. Wouldn’t a similar initiative supporting processing, branding, and sales distribution for small tea grower cooperatives be a worthwhile investment? The nascent Tea Directorate can play a pivotal role in assisting small tea growers to form cluster organizations for tea production. The directorate could then provide branding and marketing support across India and abroad, creating a self-sustainable ecosystem for both the directorate and the cooperatives under its umbrella.
The Indian Cooperative Society for Tea Development (INDCOSERVE) in Tamil Nadu serves as another example. This cooperative, formed by 30,000 small tea growers with government assistance, recently received a significant grant of Rs 9 crore for its member growers. They have established their own brands and market their products through both auctions and secondary channels. Notably, reports indicate they also supply tea to the defence sector, and the government has recently included tea in the state’s public distribution system.
Cooperatives offer a viable answer to the long-standing problem of low price realization and other economic challenges faced by small tea growers. In closing, I urge the state government and small tea growers to recognize this opportunity. A successful cooperative model awaits incubation, but it requires a serious, strategic, and dedicated approach to pave the way for success.