TMC's Rs 300 tea wage pledge draws cautious industry response over sector viability

Kolkata: The poll promise by the All India Trinamool Congress (TMC) to raise the minimum daily wage of tea garden workers to Rs 300 has drawn a cautious response from industry stakeholders, who said any wage revision must take into account the fragile financial condition of the sector and follow the established consultative mechanism involving employers, trade unions and the government.

In its election manifesto for the West Bengal assembly polls, the ruling party pledged to increase the daily wage of tea garden workers from Rs 250 to Rs 300. The party also said it would extend the exemption on agricultural income tax on green tea leaves till 2027 and continue welfare initiatives such as 'Chaa Sundari' housing scheme for plantation workers.

However, industry representatives said wage determination in the tea sector traditionally follows a structured negotiation process.

Secretary General of the Tea Association of India (TAI), P K Bhattacharjee, said the wage mechanism in north Bengal is determined through a multi-stakeholder platform.

"The wage mechanism in north Bengal is determined through a multi-stakeholder body called the Minimum Wages Advisory Board and it is a continuous procedure where employers, government and trade union representatives participate," Bhattacharjee said.

"All aspects, like the industry's paying capacity, market conditions and applicable provisions, are taken into consideration. Therefore, as an industry, it is hoped all these aspects would be considered before wages applicable to the tea industry are made applicable," he added.

The tea industry in north Bengal, particularly in the Darjeeling hills, has been facing multiple challenges, including rising production costs, stagnant global prices and increasing competition from imported teas.

A senior Darjeeling tea industry official, requesting anonymity, said several gardens in the hills were already struggling to remain viable.

"Out of the 78 tea gardens in Darjeeling, around seven to eight have already shut down due to dumping of cheaper tea from Nepal," the official said.

The official added that the sector is also grappling with operational disruptions, including issues related to industrial LPG supply, which have further strained estate finances.

"A wage hike in this situation is absolutely not sustainable," the official said, warning that more closures could occur if cost pressures continue to mount.

Industry officials said the Darjeeling sector employs around 55,000 workers, while the broader tea belt of Dooars and Terai supports a much larger workforce.

According to industry estimates, there are about 273 tea gardens across the Darjeeling, Dooars and Terai regions of north Bengal, providing employment to nearly three lakh workers directly, besides supporting a large number of indirect jobs.

Another Darjeeling-based tea company executive said that while the industry is not opposed to improving worker wages, any revision should ideally be implemented gradually.

"At least the government should hold consultations with stakeholders and consider a staggered increase rather than a single sharp revision, keeping the viability of the tea sector in mind," the official said.

Industry participants pointed out that regional wage benchmarks are also evolving. Ajay Jalan, a member of TAI, noted that the neighbouring state of Assam is already moving towards a daily wage of Rs 280 for tea workers from April 1.

According to Jalan, while the move to enhance wages reflects a broader push for worker welfare across tea-growing states, it also raises concerns about the ability of financially stressed plantations to absorb the higher labour cost.

The TMC, however, has highlighted its record in the sector, claiming that it has facilitated the reopening of 85 closed tea gardens in the state and provided housing to over 28,500 workers through its ‘Chaa Sundari’ and 'Chaa Sundari Extension' schemes.

West Bengal remains the second-largest tea producing state in India, after Assam, and the sector continues to play a crucial role in the economy of north Bengal as well as in sustaining the livelihoods of plantation workers across the region.