Challenges and Responses to Increased Tea Worker Wages

TMC Wage Hike Promise for Tea Workers Faces Industry Concerns in West Bengal​

Stakeholders Urge Consultative Approach Amid Financial Stress in Tea Sector​

Kolkata, March 22: The All India Trinamool Congress (TMC)’s proposal to increase the minimum daily wage of tea garden workers to Rs 300 has received a cautious response from industry stakeholders, who stress the need for a structured and consultative approach before implementing any revision.

TMC Manifesto Focuses on Wage Hike and Welfare Measures​

In its election manifesto for the West Bengal assembly polls, the ruling party has pledged to raise the daily wage of tea garden workers from Rs 250 to Rs 300. Alongside the wage revision, the party has also promised to extend the exemption on agricultural income tax on green tea leaves until 2027.

The manifesto further highlights the continuation of welfare initiatives such as the ‘Chaa Sundari’ housing scheme, aimed at improving living conditions for plantation workers.

Industry Highlights Existing Wage Determination Framework​

Industry representatives have emphasized that wage determination in the tea sector is governed by an established mechanism involving multiple stakeholders.

P K Bhattacharjee, Secretary General of the Tea Association of India, stated that wage decisions in north Bengal are made through the Minimum Wages Advisory Board, which includes employers, trade unions, and government representatives.

He noted that the process considers factors such as the industry’s paying capacity, prevailing market conditions, and regulatory provisions, indicating that any wage revision should align with these parameters.

Darjeeling Tea Sector Under Pressure​

The tea industry in north Bengal, particularly in the Darjeeling hills, is currently facing significant challenges. Rising production costs, stagnant global tea prices, and increased competition from imported teas have impacted the sector’s financial health.

A senior industry official from Darjeeling stated that several tea gardens are already struggling to remain viable. Out of 78 tea gardens in the region, around seven to eight have shut down due to the influx of cheaper tea imports from Nepal.

Operational challenges, including disruptions in industrial LPG supply, have further strained estate finances, raising concerns about the sustainability of a sharp wage increase.

Employment Impact Across Tea Belt​

The Darjeeling tea sector employs approximately 55,000 workers, while the broader regions of Dooars and Terai support a significantly larger workforce.

Industry estimates suggest that around 273 tea gardens operate across Darjeeling, Dooars, and Terai, providing direct employment to nearly three lakh workers, along with supporting a substantial number of indirect jobs.

Call for Gradual Wage Revision​

While not opposing wage improvements, industry executives have suggested that any increase should be implemented in a phased manner.

A Darjeeling-based tea company executive recommended that the government engage in consultations with stakeholders and consider a staggered approach to wage hikes, ensuring that plantation viability is not compromised.

Regional Wage Trends Add Pressure​

Industry participants also pointed to evolving wage benchmarks in neighboring states. Assam is set to move towards a daily wage of Rs 280 for tea workers from April 1, reflecting a broader push for improved worker welfare.

However, stakeholders caution that higher wage benchmarks could further strain financially stressed plantations.

TMC Highlights Sectoral Achievements​

The TMC has defended its track record, stating that it has facilitated the reopening of 85 closed tea gardens in the state. It also claims to have provided housing to over 28,500 workers under the ‘Chaa Sundari’ and ‘Chaa Sundari Extension’ schemes.

Tea Sector Remains Crucial to West Bengal Economy​

West Bengal continues to be the second-largest tea-producing state in India after Assam. The tea industry plays a vital role in the economy of north Bengal and remains a key source of livelihood for plantation workers across the region.