Tea companies in Assam have approached the state government seeking comprehensive discussions on the implementation of the recently amended Land Ceiling Act, which aims to grant land ownership rights to tea garden workers for housing purposes. While welcoming the government's initiative in principle, industry representatives have highlighted several financial and legal challenges that require resolution before the new law can be effectively implemented.

Industry Concerns and Requests for Dialogue

The Consultative Committee of Plantation Associations (CCPA), representing tea producers' organizations, has formally written to the state government outlining implementation challenges. Tea Association of India (TAI) President Sandeep Singhania emphasized the need for detailed discussions with companies regarding issues arising from the new legislation.

"The government should discuss the issues that have been brought to the fore by tea companies for implementing the new law. That is our only request," stated an industry source. The tea garden owners have clarified they are not opposed to transferring labour quarters' land to workers but seek to address legal and financial apprehensions.

Scope and Impact of the Amendment

The Assam Legislative Assembly passed the Assam Fixation of Ceiling of Land Holdings (Amendment) Act, 2025 in November, enabling land distribution in tea estates' labour lines among workers for housing purposes. The legislation's scope is substantial:

Legal and Financial Complications

The CCPA has identified several critical issues requiring government attention. Under existing laws, employers remain legally obligated to provide housing facilities to tea garden workers, meaning management must retain labour line land until these provisions change. The association noted that while PMAY house construction is permitted through no-objection certificates, this does not constitute ownership transfer.

A significant concern involves mortgaged assets, as many tea garden lands serve as collateral for bank loans. "Any transfer of this land would create financial and legal complications," Singhania explained during the 50th Biennial General Meeting. The distribution of 'patta' (land ownership documents) would confer heritable and transferable rights, potentially leading to future complications through unrestricted land sales.

Compensation and Statutory Obligations

The industry has requested appropriate compensation under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act 2013. Key demands include:

• Adequate compensation for transferred land
• Separate compensation for company-built assets like labour quarters
• Absolution from welfare facility responsibilities in distributed areas

Singhania highlighted that the Plantations Labour Act 1951, now incorporated into the Occupational Safety, Health and Working Conditions Code, mandates housing provision to workers. "The state-level action on land distribution does not absolve management from these statutory obligations," he maintained.

Government Position and Industry Response

Chief Minister Himanta Biswa Sarma has indicated that the state government's annual ₹150 crore incentives to tea gardens could be reconsidered if companies oppose the land rights initiative or create implementation hurdles. However, industry sources argue this linkage is inappropriate, stating that incentives operate under separate, duly notified government schemes with specific eligibility requirements.

The Chief Minister confirmed that the land acquisition process has commenced and workers will receive ownership rights. Industry representatives emphasize their support for worker welfare while seeking structured dialogue to ensure smooth implementation without compromising existing legal frameworks and financial stability.

India's tea industry faced significant challenges in June, with production declining by 9% compared to the same month last year. The Indian Tea Association reported that total tea production for the month stood at 133.50 million kg, down from 146.72 million kg in June of the previous year.

Weather and Pests Impact Production

The substantial decrease in tea production has been attributed to two primary factors: adverse weather conditions and pest attacks. These challenges have affected tea plantations across the country, leading to lower yields and potentially impacting the overall quality of the tea produced.

Regional Production Breakdown

North India

The northern region, which includes major tea-producing states like West Bengal and Assam, experienced a notable decline in production:

• June 2023: 112.51 million kg
• June 2022: 121.52 million kg
• Decrease: 9.01 million kg (7.4% decline)

South India

Southern tea-producing regions also witnessed a significant drop in production:

• June 2023: 20.99 million kg
• June 2022: 25.20 million kg
• Decrease: 4.21 million kg (16.7% decline)

Production by Planter Category

The decline in production affected both large-scale and small-scale tea growers:

Tea Variety Production

The production figures for different tea varieties in June 2023 were as follows:

• CTC (Cut, Tear, Curl) Tea: 117.84 million kg
• Orthodox Tea: 13.82 million kg
• Green Tea: 1.84 million kg

This breakdown shows that CTC tea remains the dominant variety produced in India, followed by orthodox and green tea.

Industry Implications

The significant drop in tea production could have several implications for the Indian tea industry:

1. Supply Concerns: The reduced output may lead to supply constraints in both domestic and export markets.
2. Price Fluctuations: A shortage in supply could potentially drive up tea prices in the coming months.
3. Economic Impact: Tea-producing regions may face economic challenges due to lower production volumes.
4. Quality Concerns: Adverse weather and pest attacks could affect the quality of the tea produced, potentially impacting India's reputation in the global tea market.

As the tea industry grapples with these challenges, stakeholders will be closely monitoring production trends in the coming months. The ability of tea plantations to recover from these setbacks will be crucial for the industry's performance in the remainder of the year.