Call for study on cost of tea production

AVIJIT SINHA, TT,  Siliguri: Tea planters have pitched for a study to ascertain the difference in the cost of production by big plantations and small garden in Bengal in order to draw up plans for the sustenance of tea estates.

The demand was made by the Dooars Branch of Indian Tea Association at its annual general meeting in Binnaguri in Jalpaiguri district on Saturday.

L.J. Smith, the chairman of the branch, said the study was necessary as the organised tea sector (estates) needed to bear the additional load of non-cash benefits for workforce as per the law.

"The organised sector has to bear the load of in-kind benefits, in addition to the cash components. The non-cash costs put an extra burden on the management. A study will show the cost of production in small tea gardens and big estates. The figures will enable the industry (estates) to come up with plans to reduce the cost of production in tea estates or to decided if tea prices should be increased," said Smith.

In the past two decades, small tea estates (not more than 25 acres) have mushroomed in India and there is a Call for study on cost of tea production The tea planters' meeting in Binnaguri on Saturday. (Biplab Basak) gradual rise in the proportion of the sector to the tea production in the country.

Big tea planters have been harping that the cost of production in the small sector is lower.

The tea estates' main grouse is that they have to provide non-cash components like firewood to the workers.

In the course of the meet- ing, Smith also said encroachment of plantation was a big issue.

"The constriction of permanent structures on leasehold land of tea estates by nonworkers and even outsiders without permission has become a major issue in the recent past. The government needs to intervene and come up with strict measures," said Smith.

The representatives of the ITA also spoke about minimum wage that is yet to be finalised in the tea industry in Bengal. They mentioned that in 2018, there was an interim increase of around 33 per cent in the daily wage rate.

Vivek Goenka, the ITA chairman, said: "The average cost of production in the estate sector has increased due to rise in wage and other input costs. While the industry has been adopting cost rationalisation measures to contain backend costs, one area that needs sharper focus is improvement in productivity in the field and in the factory. Mechanization in the factory and in the field is necessary and countries like China and Kenya are working on such techniques to enhance productivity," said Goenka.

Additional reporting by our Jalpaiguri correspondent.