Image is for representational purposes only. | Photo credit: PTI
The Tea Association of India (TAI) has urged the government in poll-bound Assam to address its concerns over an amended law that gives plantation workers the right to land on tea plantations.
In February, the BJP-led state government amended Assam’s Land Ceiling Act to grant legal land rights to 3.5 lakh families of plantation workers in the labor lines of more than 800 tea plantations across the state.
Addressing the 37th biennial general meeting of the Assam branch, TAI president Shailja Mehta welcomed the government’s intention to provide land to plantation workers. However, it highlighted certain administrative and legal complexities.
She said many tea gardens have pledged their land as collateral for loans and transfer of such land can cause financial and legal complications.
“Furthermore, the Land Ceiling Act applies only to land and not to society-created assets such as industrial estates. Therefore, adequate compensation should be ensured under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013,” Ms Mehta said.
She also emphasized legal obligations. “Under the Safety, Health and Working Conditions Act 2020 (formerly the Plantation Labor Act 1951), management remains responsible for housing and social facilities. Transfer of land without appropriate legal arrangements can lead to permanent management liability,” she said.
Changes to the Labor Code
The association also expressed concern over changes to the labor code implemented in November 2025, noting that nearly 60% of tea production costs are labor-related. He urged the government to fully recognize benefits-in-kind in salary calculations, rather than limiting them to 15%.
“However, the tea industry continues to bear a significant responsibility for providing social benefits in kind under the Safety, Health and Working Conditions Code, leading to duplication of financial burden and affecting sustainability,” Ms Mehta said.
TAI has sought the release of pending subsidies under the Assam Tea Industries Special Incentive Scheme, warning that delays could affect the financial stability of the industry.
The association also expressed concern over geopolitical tensions and potential disruption to key markets, including Iran, Iraq, the UAE and China, amid reports of a possible closure of the Strait of Hormuz. It warned that any disruption could affect export volumes, shipping routes and prices.
India’s tea exports reached a record 280 million kg in 2025, generating ₹8,488 million.
Published – 30 Mar 2026 01:36 IST
