Concerns Raised Over Tea Garden Land Transfer and Price Decline
Issues Surrounding Tea Garden Land and Pricing
Guwahati, Jan 4: Sandeep Singhania, the president of the Tea Association of India (TAI), highlighted on Saturday that a significant portion of tea garden land is currently mortgaged to banks, and any attempt to transfer this land could lead to complex financial and legal issues.
Singhania made these remarks during the 50th biennial general meeting of the planters' organization held in Kolkata.
He acknowledged the intentions of the Assam and West Bengal governments to issue land pattas to tea garden workers but urged both administrations to resolve existing concerns prior to moving forward with the initiative.
He pointed out that the Land Ceiling Act applies to land rather than structures, emphasizing that compensation for company-built facilities, such as labor quarters, must be handled separately. He insisted that managements should receive fair compensation in accordance with the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act of 2013.
Furthermore, Singhania noted that the Plantations Labour Act of 1951, now integrated into the Occupational Safety, Health and Working Conditions Code, mandates that employers provide housing and essential amenities for workers. He stressed that state-level actions regarding land distribution do not exempt management from these legal responsibilities. Unless the current Act is revised, managements will continue to be accountable for housing even after land transfers occur.
“We earnestly request both State Governments to consider these issues,” he stated.
Singhania also mentioned that the pressure on tea prices has escalated this year.
In 2025, the average tea price across India fell by Rs 12.31 per kg, marking a decrease of about 6 percent, dropping from Rs 199.30 per kg in 2024 to Rs 186.99 per kg in 2025.
In North India, particularly Assam and Bengal, the decline was even more pronounced, with average prices decreasing by Rs 16.73 per kg, or roughly 8 percent, from Rs 221.57 per kg in 2024 to Rs 204.84 per kg in 2025. This situation has emerged due to the rapid rise in costs within the organized tea sector, without a corresponding increase in farmgate prices.
Additionally, the TAI president expressed worries regarding the delayed distribution of subsidies under the Assam Tea Industries Special Incentive Scheme (ATISIS) 2020.
According to a notice from the Finance Department of the Government of Assam dated November 7, 2025, benefits under ATISIS 2020 for a specific financial year will be disbursed based solely on the State's budget for that year. There will be no carryover for payments in subsequent financial years. This notification has caused distress within the industry, as some eligible applicants who have completed all necessary formalities within the required timeframe have yet to receive their subsidies.