The Tea Association of India (TAI) has urged the government in poll-bound Assam to address its concerns about an amended law granting plantation workers the right to land in the tea estates.
In February, the BJP-led State Government amended the Assam Fixation of Ceiling on Land Holding Act to grant legal land rights to 3.5 lakh families of plantation workers in the labour lines of more than 800 tea estates across the State.
Speaking at the 37th biennial general meeting of the association’s Assam branch, TAI president Shailja Mehta welcomed the government’s intent to provide land deeds to plantation workers. However, she underlined certain administrative and legal complexities.
She said that many tea gardens have mortgaged their land as collateral for loans, and transferring such lands may create financial and legal complications.
“Moreover, the Land Ceiling Act applies only to land and not to company-built assets such as labour quarters. Adequate compensation should, therefore, be ensured under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013,” Ms. Mehta said.
She also highlighted the statutory obligations. “Under the Occupational Safety, Health, and Working Conditions Code, 2020 (earlier the Plantations Labour Act, 1951), management remains responsible for housing and welfare amenities. Transfer of land without corresponding legal amendments may lead to continued liability on management,” she said.
Labour code changes
The association also raised concerns over the labour code changes implemented in November 2025, noting that nearly 60% of tea production costs are related to labour. It urged the government to fully recognise in-kind benefits in wage calculations, rather than limiting them to 15%.
“However, the tea industry continues to bear substantial responsibility for providing welfare benefits in kind under the Occupational Safety, Health, and Working Conditions Code, leading to duplication of financial burden and affecting sustainability,” Ms. Mehta said.
The TAI requested the release of pending subsidies under the Assam Tea Industries Special Incentive Scheme, warning that delays could affect the industry’s financial stability.
The association also expressed concern over geopolitical tensions and potential disruptions in key markets, including Iran, Iraq, the UAE, and China, amid reports of the possible closure of the Strait of Hormuz. It warned that any disruption could impact export volumes, shipping routes, and pricing.
India’s tea exports reached a record 280 million kg in 2025, generating ₹8,488 crore.
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