CHAPTER-VII

SUMMARY AND RECOMMENDATIONS

1. Tea was discovered in China about 4700 years ago. The botanical name o f

the tea plant is Cam ellia Sinensis (L).O.Kuntze. The seed and sapling o f tea,

made tea and the culture o f drinking tea spread to other countries o f Asia from

China. Tea entered the western countries in the beginning o f the 17* century. The

major tea producing countries in the w orld are India, China, Sri Lanka, Kenya,

Indonesia and Japan etc. Now, more than 131 countries in the w orld import tea

from around 35 tea producing countries.

2. In India, indigenous tea plant was first discovered in upper-A ssam forests

by M ajor Robert Bruce and his brother Mr. C. A. Bruce in 1823 A.D. Cultivation

o f tea was initiated in the Brahmaputra Valley o f Assam in India in the year 1835

A.D. on an experimental basis at the recommendation o f the Tea Committee.

Commercial production o f tea was started in 1839 w ith the establishment o f

Assam Com pany the first tea company. M ajor tea producing states o f India are

Assam, West Bengal, Tamilnadu, Kerala, Karnataka, Himachal Pradesh and Tripura

etc. India is one o f die m ajor producers, consumers and exporters o f tea in the

world.

3. M ore than 50% o f Indian tea is produced by Assam. M aniram Dewan o f

Assam was the first Indian tea planter. Some rich Assamese families had started

tea plantation along w ith the British tea planters. M ajority o f tea plantation in

Assam are concentrated in upper-Assam districts o f Brahm aputra Valley. Some

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gardens are there in Barak Valley also. As indigenous people were not interested

in working in gardens as labourer, the tea planters had brought labourers from

Bihar, Orissa, M adhya Pradesh, Andhra Pradesh etc. during British Rule, to work

in die tea estates o f Assam.

4. Tea is cultivated on a small scale in m any countries in the w orld such as

China, Japan, Sri Lanka, Kenya, Indonesia etc. In India, small tea cultivation is

there in Tamilnadu, Kerala, Karnataka and Himachal Pradesh fo r m any years. In

Assam, small tea cultivation was initiated in 1970s. Now, small tea cultivation is

there in W est Bengal, Tripura, Nagaland, Aranachal Pradesh etc.

5. Cultivation o f tea on a small scale for production and sale o f green le af to

processing units is popularly know n as small tea cultivation. This small scale is

defined differentiy by different authorities. A plantation up to 10.12 hectare is

treated as small tea plantation by the Tea Board o f India. This upper lim it o f small

tea plantation is applied for the present study.

6. The youths o f Assam had started small tea plantation in 1978 at the call

given by Mr. Soneswar Bora, the then Agriculture M inister o f Assam. The All

Assam Small Tea Growers Association was formed in 1987. The small tea culti

vation o f Assam is mainly concentrated in upper-Assam districts. In 1990s a rapid

growth o f small tea cultivation was noticed in Assam. N ow this small sector pro

duces around 18 to 20 per cent o f the total tea produced in Assam.

7. Cultivation o f tea on a small scale to sell green le a f to processing units is a

new idea in Assam. It is the outcome o f the entrepreneurial ability o f a group o f

local youths in the later part o f the 1970s, Small tea cultivation assumes much
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importance in the economy o f Assam as a provider o f employment to thousands

o f people o f the State. The annual turnover o f the small tea growers o f Assam is

around Rs.300 crores. (400 M kg o f green leaf). The soil and agro-climatic con

dition o f Assam is very suitable for the cultivation o f tea. So it seems to be the

best alternative use o f cultivable land in this region. Moreover, tea industry has a

very high linkage effect which helps in the development o f trade and commerce.

Production o f more and more quantity o f quality tea becomes necessary to achieve

the export target set by the Tea Board o f India. All these factors have increased

the importance o f small tea cultivation.

8. Unem ploym ent is an acute problem in the N orth Eastern Region o f India.

The unemployed youths have failed to take advantage o f various self-employment

opportunities available despite having large amount o f resources and demand for

various products in the region. Some o f the reasons behind slow pace o f industri

alization in this region are geographical isolation, lim ited infrastructural facili

ties, lack o f finance, lack o f techno-economic information, stiff competition from

outside, high manufacturing cost etc. B ut the dearth o f entrepreneurship is re

garded as the m ost im portant factor for the slow growth o f industries in the re

gion.

9. A num ber o f rich Assamese families had established large tea estates in

Assam during the British Rule. Entrepreneurship in small tea cultivation was no

ticed in Assam for the first time in 1970s. A num ber o f favourable factors have

influenced the grow th o f small tea cultivation. Availability o f suitable land,

favourable climate, experienced labourer and retired tea garden supervisors and

availability o f other inputs have helped the expansion o f small tea cultivation in
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Assam. Existence o f a large num ber o f tea estates having processing factories

have facilitated the selling o f green leaf in the initial years. Then Bought Leaf Tea

Factories have been established. The State Government and the Central Govern

m ent are inspiring the youths for self employment through various schemes.

10. Small Tea Growers Advisory Programme o f Assam Agricultural Univer

sity is providing necessary training to small tea growers w ith financial assistance

from the Tea Board o f India. Lately, Tea Research A ssociation o f Toklai Experi

mental Station is providing field training to small tea growers o f Assam.

11. The num ber o f small tea growers is increasing at a faster rate in all the tea

growing districts o f Assam and N.E. India. Therefore, the extension activity to

the small tea growers has to be accelerated at such a rate to keep pace w ith its

growth. In this context training, field visits, demonstration and all the advisory

activities o f STAP need to be strengthened in terms o f fund, infrastructure and

resource support.

12. Small tea growers o f Assam are scattered in quite interior places and also

far away from STAP H ead Quarter. In order to provide better and equal extension

service to the small tea growers o f the State the programme needs to be strength

ened by opening up extension units o f STAP at different locations so that it be

comes accessible to all the growers.

13. The plantations o f pioneer growers have attained age at which some specific

problems like decline in yield, decline in vigour and vagaries o f pests and diseases

etc wiU creep up. These problems may be area specific or situational specific.

These problems are to be addressed through an intensive approach by STAP.

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14. In order to produce quality tea, a constant updation with the latest technol

ogy and frequent intensive as well as extensive training is necessary for all the

small tea growers of Assam.

15. All Assam Small Tea Growers Association formed in 1987 is the only

organization of small tea growers of Assam. It has 88 branches all over Assam.

This organisation has done a lot for the development of entrepreneurship in small

tea cultivation. So far six biennial conferences of this Association have been held

in different places of upper-Assam. This Association is playing an important role

for the welfare of small tea growers of Assam and for the growth of small tea

cultivation in the State.

16. A number of socio-economic issues have been examined in the study. It is

found in the study that during 1990s huge areas of high lands were converted

from other crops to tea plantation. It has reduced the production of some other

crops and fruits as well as bamboos, thatch and citronella etc. Production of

sugarcane and orange is also reduced.

17. Small tea cultivation has contributed a lot in mitigating the unemployment

problem of the State. More than 50000 small tea growers are there in Assam.

Most of them were unemployed youths. The small tea sector is providing direct

employment to over 120000 persons. A good number of people are getting em

ployment indirectly by small tea cultivation.

18. The Supreme Court imposed ban on cutting of trees in the N.E. Region had

virtually closed the Plywood Industry of Assam. Many Plywood Mills and Saw

Mills were converted into Bought Leaf Tea Factories after 1996. Establishment
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o f these Bought L eaf Tea Factories m ay be termed as linkage effects o f small tea

cultivation.

19. Tea is generally cultivated on highlands. Therefore, naturally small tea cul

tivation in Assam has changed the composition o f different agricultural and hor

ticultural produce to some extent. In 1990s small tea cultivation was giving a very

high return. Ehning that period conversion o f other crops land to tea had taken

place. Moreover, the use o f chemical fertilizers and pesticides in small tea plan

tation is likely to pollute the environment in the long run.

20. Small tea cultivation has some positive impact on grow ers families. It has

brought regularity o f income to these families. The purchasing pow er o f small

tea growers has been considerably increased. The standard o f living is also raised

by small tea cultivation. W ith the increase in income, savings and investment is

also increased. A ll these have been giving a self-contentment to small tea grow

ers families.

21. Small tea cultivation has some negative impacts too on grow ers families.

Increased income and changing living style has isolated the small tea grow ers

families in rural areas from the mass people. Some o f the small tea grow ers

families are becoming self-centered. Involvement in green le a f theft o f some

growers families is also a bad impact.

22. Small tea cultivation has some positive impacts on the economy o f the State.

Creation o f jo b opportunities and eradication o f unemployment problem to some

extent is a positive impact o f small tea cultivation. It has expanded trade and com

merce in the State. W ith the increase in the purchasing pow er o f growers families
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and labourers and employees engaged in small tea plantation, the circulation o f

money is m uch increased, which is good for the economic health o f the State.

Small tea cultivation is contributing to the growth o f States domestic product as

well as revenue by increasing the production o f tea. It is the best alternative use

o f high lands o f the State. In an environment o f despair caused by joblessness,

small tea cultivation has brought a ray o f hope in the minds o f a large num ber o f

youths by providing livelihood.

23. An analysis o f strength, weakness, opportunity and threat to small tea cultiva

tion reveals that there are many strong points o f small tea cultivation in Assam.

Some o f them are availability o f favourable soil and climate, availability o f labour,

comparatively lower cost o f production, support from Tea Board and Government,

existence o f a large number o f processing units who buy green leaves etc.

24. Some weak points o f small tea cultivation are also observed in the study.

Lack o f own processing units, absence o f quality consciousness, lack o f institu

tional finance and inadequate training facilities are some o f the weaknesses o f

small tea cultivation.

25. It is observed in the study that small tea cultivation has some opportunities

which could be exploited by growers w ith some personal efforts. These opportu

nities are production o f organic tea, establishment o f m ini factories, plantation

o f medicinal plants, multi-crop cultivation, cattle and poultry farming etc. High

production target set by Tea Board and provision o f minim um support price and

growing num ber o f bought le af factories in the State are some other opportuni-
r

ties for small tea growers o f Assam.

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26. Escalation o f labour cost, poor quality o f made tea produced by bought leaf

factories, green le af theft are some threats to small tea cultivation in Assam.

In spite o f having some weaknesses and threats it m ay be concluded that

small tea cultivation o f Assam is commercially viable considering its strong points

and opportunities. W eaknesses o f the small tea sector could be rem oved w ith a

concerted effort o f all concerned.

27. As per the present study, the cost o f plantation o f tea per hectare amounts to

Rs. 123119/-. This amount is required during initial tw o years. It is treated as

establishment cost w hich is required to be w ritten o ff w ithin the next 5 to 10

years.

28. From 3rdyear onwards, the tea bushes start giving production. After 5 years

tea bushes attain m aturity and give a steady production for about 35 to 40 years.

The plucking season o f tea in Assam is generally M arch to N ovem ber each year.

During these 9 months, tea bushes are plucked about 25 to 30 times at a regular

interval.

29. Based on data collected from sample population, it is estimated that operat

ing cost per kg o f green leaf is Rs. 4.89. The average production o f green leaf per

hectare is 1073 6 kg. As all the tea bushes have not attained maturity, the yield per

hectare is likely to be increased by around 4000/5000 kgs'in the next few years.

A n increase in production w ill increase revenue and thereby cost o f production

per kg o f green le af w ill come down.

30. Break Even Analyses o f area, yield, volume and price (o f green leaf) o f

small tea plantation revealed that small tea growers o f Assam are operating at a
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higher level than the Break Even point. It may be concluded from the analyses that

small tea cultivation o f Assam is economically viable. The profitability o f small

tea cultivation is likely to be increased with the increase in production o f green

leaf.

31. The small tea cultivation o f Assam is plagued by various constraints. These

constraints are broadly classified as economic constraints, productivity related

constraints, infrastructural constraints, knowledge based constraints, market re

lated constraints and situational constraints. Some o f the problems are common

to all growers and some problems differ from grower to grower.

32. Un-remunerative price o f green leaf is a problem faced by almost all the

growers. G reen le a f price received b y small tea growers is slightly higher than

cost o f production o f green leaf. This slender margin o f profit is not enough for

the growth o f the industry.

33. M ost o f the small tea growers do not possess proper title over land planted

w ith tea. They could not register their plantation w ith the Tea Board o f India for

lack o f periodic patta land. This non registration deprives them o f receiving any

subsidy and assistance from the Tea Board.

34. Bought L eaf tea factory in co-operative sector is not there in Assam. Small

tea growers are fully dependent on private bought le a f factories and large tea

estates for selling green leaf. This dependence on buyers has m ade them vulner

able to dominance and exploitation.

3 5. Lower productivity, lack of training and higher cost o f production are some
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o f the problems faced by small tea growers.

36. The tea industry o f South India has some unique features. Tea producing

states o f South India are Tamilnadu, Kerala and Karnataka. Commercial produc

tion o f tea was started in South India in 1853. Tamilnadu alone produces around

65% o f South Indian tea.

37. Production o f tea on a small scale was started in South India in 193 Os. F aim

ers growing potatoes and other vegetables first started small tea plantation in the

Nilgiris o f Tamilnadu. D ue to disease and pest attack they abandoned growing o f

vegetables. The scheme called Crop Diversification introduced by UPASI was

responsible for the growth o f small tea cultivation in the Nilgiris.

3 8. Small tea cultivation in South India is m ainly concentrated in the Nilgiris

district o f Tamilnadu. O ut o f a total o f nearly 50000 hectares o f land under tea in

the district, about 30000 hectares are owned by small tea growers numbering

over 60000. They produce nearly 95% o f the tea produced by small tea growers

o f South India. 173 nos. o f Bought L eaf Tea Factories are operating in the Nilgiris.

39. The U nited Planters Association o f Southern India (UPASI) founded in

1893 is the apex organization o f die producers o f tea, coffee, rubber and spices

in South India. These producers o f different plantation crops have some common

problems relating to wages, welfare measures etc. since inception, UPASI has

been functioning admirably to advance and protect the interest o f the planting

community in Southern India. Krishi Vigyan K endra set up in 1983 serves the

need o f small tea growers in the Nilgiris.

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40. The first Bought L eaf Tea Factoiy intheN ilgiris was established in the year

1935. Now there are more than 170 bought leaf factories operating in the Nilgiris.

M ost o f the bought le af factories are in private sector. 17 o f them are in co

operative sector. These bought leaf tea factories purchase almost the entire quan

tity o f green le a f produced by small tea growers.

41. Small tea growers o f the Nilgiris are faced w ith a num ber o f problems such

as lower productivity, shortage o f labourer, financial constraints, high cost o f

production, low price o f green le af etc. Out o f these problems high cost o f pro

duction and low price o f green le af are two m ajor problems confronted by the

small tea growers.

42. From the year 2000 onwards a Quality Up-gradation Programme has been

undertaken for the small tea growers o f the Nilgiris. To realize better price for

made tea in the auction centres up-gradation o f quality is a must. Price o f green

leaf depends on price o f made tea realized in the auction market. Therefore, steps

have been taken to improve the quality o f green leaf produced by small tea grow

ers and up-gradation o f the processing o f made tea at bought le a f factories.

43. A comparative analysis o f the small tea sectors o f South India and

Assam reveals that the small tea cultivation o f South India is older and the growers

have earned m uch experience. They have ownership title over tea growing lands

and m ost o f them are registered w ith the Tea Board o f India. The growers have

form ed producers co-operatives and S elf H elp Groups. U nited Planters

Association o f Southern India (UPASI) plays an im portant role for the growth

and development o f the small tea sector. The productivity o f the small tea sector

o f South India is higher than Assam. But the quality o f tea produced by them is

inferior and the selling price o f made tea is less in com parison to Assam.