Planters Urge Assam Govt on Land Transfer for Tea Workers

Tea Association of India Urges Assam Government on Housing Land Transfers​

Concerns Over Housing Line Land Transfer​

The Tea Association of India (TAI) has requested the Assam government to address industry concerns regarding the transfer of housing line land to tea garden workers under a newly amended law. While appreciating the government’s intent to provide land deeds, TAI emphasized the need for clear administrative guidelines to prevent financial and legal complications.

TAI President Shailja Mehta highlighted that many tea garden lands are mortgaged with banks, and transferring these properties without proper regulation could create challenges. She also noted that the Land Ceiling Act applies only to land, not to company-built assets such as labor quarters.

Mehta stressed:

• Compensation must be ensured under the Right to Fair Compensation and Transparency in Land Acquisition Rehabilitation and Resettlement Act 2013.
• Management remains responsible for housing and welfare amenities under the Occupational Safety, Health and Working Conditions Code 2020.
• Transfers without legal amendments may leave management liable for ongoing obligations.

Administrative Challenges Highlighted​

G.S. Pahwa, Chairman of TAI Assam Branch, echoed these concerns, stating that administrative clarity is needed to harmonize new labor codes with housing land transfer provisions. He emphasized that balanced, consultative policymaking would benefit both tea garden workers and the industry.

TAI also highlighted changes under the four Labour Codes implemented from November 2025, particularly:

• The wage code limits recognition of in-kind benefits to 15% of total remuneration for minimum wage calculation.
• The tea industry bears substantial responsibility for in-kind welfare benefits, which TAI urged should be fully recognized for wage computations.

Pending Subsidy Payments​

Mehta requested that the government release pending subsidy payments under the Assam Tea Industries Special Incentive Scheme (ATISIS 2020). The Finance Department currently conditions disbursement on annual budget availability, with no carry-forward provision.

Geopolitical Risks and Export Concerns​

TAI expressed concerns that ongoing geopolitical tensions, especially the closure of the Straits of Hormuz, could impact India’s tea exports.

Key points highlighted:

• India’s tea exports reached record 280 million kg in 2025, earning nearly Rs 8,488 crore.
• Strong demand came from Iran, Iraq, UAE, and China, with Orthodox teas driving Middle East exports.
• Ongoing tensions threaten export volumes, payment cycles, shipping routes, and pricing.

Mehta stressed the need for policy support and market diversification to maintain export momentum in 2026.

Policy Recommendations by TAI​

TAI has proposed several measures to strengthen the tea industry:

• Establish minimum sustainable prices for Made Tea.
• Address quality issues, including competition from low-cost imported teas.
• Promote Indian teas in global markets.
• Encourage agritech innovations to enhance productivity and sustainability.

The planters’ body emphasized that proactive government intervention is essential to safeguard workers’ welfare, support the tea industry, and protect India’s export growth amid rising regional uncertainties.