THIRST Tea News Update

A narrow view of tea workers’ issues

Despite extensive efforts across the industry to improve the lives of tea plantation workers, they continue to experience poverty and poor living and working conditions in some estates. On March 4^th the Australian Broadcasting Company aired a 30 minute piece on the disparity between the perceived claims of certifications such as Rainforest Alliance and Fairtrade and the reality experienced by some tea plantation workers in Sri Lanka. The programme claims that “the system is failing both Sri Lankan tea workers and consumers.” (ABC, February 26, 2025).

The video is accompanied by written responses from the ETP-member brands named in the piece who – like the tea industry representatives in the programme – raise the issue of the low price of tea which makes reaching decent pay and work standards challenging.

THIRST’s Human Rights Impact Assessment of the global tea sector has highlighted the fact that the human rights breaches faced by tea workers and farmers are driven by multiple factors across the value chain and we continue to work with industry stakeholders to find solutions to these systemic issues. Whilst we deplore the issues highlighted in the programme and hold all stakeholders accountable, we maintain that presenting a narrow view of the issues in this way stirs consumer passions without providing sufficient background information or adequate space to explore constructive, systemic solutions.

At a more local level, the journey, struggles, and survival of tribal workers in tea plantations in Assam were portrayed in ‘Chai Garam’ (Hot Tea), a play by Orchid Theatre at the International Theatre Festival of Kerala (ITFoK) (The Hindu, February 28, 2025)

Indian tea workers’ land rights

Last month’s tea news was dominated by developments in north India. While the West Bengal government officially handed over newly constructed houses to [438] beneficiaries under the ‘Cha-Sundari’ housing scheme in Alipurduar district… (Kalimpong News, February 09, 2025), the Chief Minister’s announcement that up to 30% of tea estate land that is not currently used for growing tea can be used for other purposes such as tourism and industry has led to deep unrest.

The move was in response to challenges faced by tea estate owners in making estates commercially viable, but local politicians argue that “The decision… fails to recognise the historical, cultural and rightful claims of the indigenous residents of these regions…The land should rightfully belong to those who have lived, worked and sustained these tea estates for generations…” (Millenium post, February 06, 2025), and that if implemented without safeguards for traditional land rights, it could leave… indigenous groups of Darjeeling, Terai, and Dooars homeless. (The Stateman, February 07, 2025).

The Indian Gorkha Janshakti Front (IGJF) said “These (hills) are our kipat (our homeland). We have no vacant space for others, forget about 30 per cent, we don’t have even 1 per cent vacant space. (February 09, 2025) See also: (The Hindu, February 10, 2025), (Telegraph India , March 02, 2025). Banerjee clarified that only 15% of tea plantation land will be used for tea tourism and local employment… and no single entity will be granted more than 30 acres at a time. (The Stateman, February 27, 2025).

The dispute comes on top of the argument over the government’s announcement to give tea workers ownership of five decimals of land (1 decimal = 1/100 of an acre/435.6² /40.47 m²) for housing and home gardens etc. Workers want documents for the entire land in their possession. (The Telegraph India, February 08, 2025). The Paschim Banga Cha Majdoor Samiti, an independent and non-party-affiliated trade union committed to protecting the rights of tea garden workers in north Bengal said that the decision violates the International Labour Organization’s Indigenous and Tribal Populations Convention, 1957 (C107) that India has ratified and under which it has the responsibility to recognise the “land rights of the tribal population of the tea estates over the land that they are traditionally occupying”. (The Indian Express, February 12, 2025).

Meanwhile, tea estate owners say they are grappling with the challenge of illegal encroachments or unauthorised occupation of estate land by non-workers, often through intimidation (MSN, February 09, 2025). But in a different interpretation of illegal occupation, the CITU trade union has alleged illegal occupation of land in Agartala, meant for plantation of tea and rubber (Tripura Times, February 28, 2025).

Other Indian states have also been touched by these issues; workers in Assam also protested for higher wages and landownership (World Socialist Website, February 28, 2025) and the Himachal Pradesh Government also announced its intention to introduce tea tourism in the state as “tea farming is becoming increasingly unviable”… “…smaller tea farmers, who lack the necessary land area or permissions, have been forced to abandon their tea gardens.” (The Tribune India, February 17, 2025)

Industrial unrest in Darjeeling, Dooars and Terrai

The situation in Bengal’s Darjeeling, Dooars and Terrai regions is getting increasingly tense due to wage and land use and ownership disputes.

Workers in numerous north Indian estates have been protesting over unpaid wages, and in some cases have refused to resume plucking until their unpaid wages and benefits are settled. This comes at the start of the highly valuable first flush season, upon which the profits for the rest of the year heavily rely. As a result, at least two estates have closed down.

Workers on Turturi Estate in India’s Dooars and Terai region refused to resume plucking until wages overdue for two fortnights were paid. (Telegraph India, February 13, 2025) At Chamong Tea’s Mirik estate, “A section of the workers, mostly female, refused to undertake the assigned jobs and instead demanded that issues like bonus, minimum wages and rate of extra leaf plucking be settled first,” (The Telegraph , February 23, 2025).

Breaking news: Today reports have come in that the Mirik estate, along with Nagri Farm have been closed down as a result of the workers’ refusal to pluck. (Telegraph Inida, 07/03/25)

The Joint Forum, a coalition of over 30 trade unions representing tea workers in north Bengal, announced an campaign to address critical issues in the tea industry, including, wearing black badges on 20 February to demand the implementation of the Minimum Wages Act which was agree a decade ago on 20 February. (The Stateman, February 19, 2025), (Millenium Post, February 21, 2025)

Alongside the pay protest, students from the Adivasi community took to the streets to highlight the dire state of education in government-aided schools within tea gardens in the Terai region. (Kalimpong News, February 22, 2025)

Cleaner, purer better quality tea

The Indian, Kenyan and Vietnamese governments are pushing and supporting tea growers to improve the quality of their tea.

Kenyan tea factory directors have been given full responsibility for managing sales at their respective factories and instructed to prioritise enhancing the quality of their tea. (The Star, February 08, 2025)

Arunachal Pradesh’s Governor has encouraged small tea growers to adopt natural cultivation methods, saying “Organic tea is the future of the industry. It enhances sustainability, meets global quality standards, and ensures better market returns for our farmers,” (Economic Times, February 16, 2025) Government offices in the region have “conducted a training programme on ‘Comprehensive quality upgradation for small tea growers’ … aimed at enhancing [their] tea processing and manufacturing skills. (The Arunachal Times, 02/02/2025). Elsewhere in India, the Bengal government has announced that special task force and laboratories to test the chemical composition of tea and ensure its safety for consumption. It will also closely monitor adulterated Darjeeling tea from Nepal and dust tea from Assam. (Millenium Post, February 19, 2025) & (Telegraph India , February 14, 2025)

The goal set out in Vietnam’s Resolution No. 11 includes “contributing to enhancing the value and brand of Thai Nguyen tea in the direction of integrating the multi-value of tea; promoting consumption, export and sustainable connection with the global agricultural value chain.” (Vietnam.vn, February 12, 2025).

Climate crisis continues to drive tea crisis – solutions sought

We continue to see news of drastic reductions in tea production in multiple countries due to the climate crisis.

“India’s tea production in 2024 fell 7.8% … as heatwaves and floods during the peak harvesting season slashed output” (MSN, February 06, 2025). Similarly, in neighbouring Bangladesh “Tea production… dropped by 1 crore kg in 2024 compared to 2023…Tea estate owners and experts attribute the decline to erratic weather, including unpredictable rainfall, heavy downpours, and extreme heat. (The Business Standard, February 08, 2025).

Further afield “Harsh weather, months without rain and scarce irrigation water have caused tea plants in some areas of Thai Nguyen province [of Thailand] to dry out and die, but these are “concentrated in households that are… still … spraying pesticides, fertilizing inorganic fertilizers directly on the tea roots.” Hence the recommendation that farmers should “…increase biological measures; apply scientific and technical advances… suitable to… natural conditions [and] balance the crop ecosystem…”(Vietnam.vn, February 17, 2025)

Back in India, the United States government and Amalgamated Plantations Private Limited [had] “launched a cutting-edge tree nursery at Kakajan tea estate…[to] support… climate change mitigation goals by producing one million healthy plants annually, significantly contributing to the state’s carbon sink.” (World Tea News, February 06, 2025) NB It is not clear if the project will be affected by the recent USAID cuts.

The Government of Kenya is set to receive $50 million, for a project that aims to “promote climate-resilient and low-carbon practices in six value chains, namely:  dairy, poultry, coffee, tea, fruit trees, and African leafy vegetables in the Lake Region Economic Bloc”. Smallholder farmers and producer cooperatives – who are among the most vulnerable to the adverse effects of climate change – will be trained and supported to adopt climate-smart technologies and practices. (KBC, February 21, 2025)

Closures lead to workers going hungry

The closure last year of the Manjolai tea estates in South India has died down in the news headlines, but people are continuing to suffer. Puthiya Tamilagam leader Dr K Krishnasamy says “370 families [out of the 534 that were affected] have been struggling without any stable income, facing severe food shortages,”  (The New Indian Express, 08/02/2025).

A similar fate awaits workers on Bangladesh National Tea Company’s Madhabpur Tea Estate whose sudden closure “has left families stranded without income or alternative employment opportunities… With five family members, including a sick mother, [Sanu] struggles to provide even the most basic meals, resorting to muri (puffed rice) and cha pata bhorta (mashed tea leaves) for sustenance.” (The Daily Star, February 12, 2025)

Tax and tea companies

Indian tea producers have welcomed their government’s decision to extend the exemption of agricultural income tax for the tea industry until 31 March, 2026, as announced in the state Budget for FY 2025-26. The Tea Association of India also acknowledged the ‘Nadi Bandhan’ scheme, which aims to integrate river-centric initiatives and improve the livelihoods of communities living along riverbanks in North Bengal.” (The Stateman, February 13, 2025)

Sri Lankan planters have commended the move to defer the removal of Simplified Value Added Tax (a voucher that businesses can issue during B2B transactions that allows them to bypass paying VAT first and then applying for a refund). They say that it will result in all tea growers including smallholders having to forego an additional 18% off their cost of production… The cumulative annual loss to the industry is estimated at almost Rs.24 billion.” (Daily News LK, February 08, 2025)

Seeking a better price for tea

Tea growers and in India and Kenya have been seeking ways to ensure better prices for made tea.

The Kenyan government has unveiled a raft of new measures aimed at enhancing tea prices as well as tackling the issue of unsold teas, while Indian producers are lobbying their government for a minimum price. (The Star, February 08, 2025) 

Various Indian tea producers’ organisations have advocated that to ensure the sustainability of the Indian tea industry, a minimum sustainable price for made tea – indexed to the cost of production and quality – needs to be introduced immediately along with that 100% auction of made teas. (The Sentinel, February 14, 2025). The Confederation of the Indian Small Tea Growers Associations… said “the price sharing formula that has been introduced by the Tea Board for our sector does not compensate our cost of production, and we need a fair and transparent pricing mechanism”. (Telegraph India , February 13, 2025). Subsequently, the Nilgiris district administration has constituted a committee to… “consult farmers groups and factories to come up with a price that can be suitable to all stakeholders in the district”. (The Hindu, February 21, 2025)

A steep drop in Kenya’s tea export earnings in December 2024 was attributed to declining global prices and softer demand in traditional markets, exacerbated by global economic headwinds. (Kenyan Wall Street, February 21, 2025). The government is seeking ways to boost tea earning. All Kenyan tea factories are now required to provide data on unsold teas to the Tea Board of Kenya… there is now a ban on selling tea below the cost of production. (The Star, February 08, 2025) However, tea factories in the West of Kenya “are asking the government to look into the issue of having scientific testing so that we can prove that we have the best tea and deserve better tea prices,” The directors argue that the initiative is crucial for the sustainability of the tea industry and the livelihoods of small-scale tea farmers in the region. (Kenyans.co.ke, February 22, 2025).

In more positive news, there is been an improvement in the price for Ugandan tea at Mombassa auction which has been hailed as “…a testament to the resilience of our farmers and the improving quality of Ugandan tea.” (MSN, February 09, 2025)

The struggle to pay workers and farmers

Workers from Isabheel Tea Estate in Assam (which is set to be privatized) are protesting to settle pending pay, basic food assistance, housing and retirement benefits along with strict enforcement of the government-mandated minimum wage amount of Rs228. (PragNews, February 10, 2025).

Workers who are receiving wages will at least not be deprived of the ‘dearness allowance’ after a trade union petition to Assam’s High Court has succeeded in staying the state’s government’s order to remove it. (The Stateman, February 21, 2025). The Assam Branch of the Indian Tea Association, with the ACMS trade union, and the management of two tea estates have run an awareness workshop for workers on the financial losses that they incur by missing work, including Provident Fund, gratuity, pension, bonus, maternity benefits, etc. apart from wage-loss & fringe benefits. (The Sentinel, February 12, 2025)

explaining the financial losses that the absenting workers suffer in the form of Provident Fund, gratuity, pension, bonus, maternity benefits, etc. apart from wage-loss & fringe benefits. (The Sentinel, February 12, 2025)

Sri Lanka’s Planters’ Association responded to criticisms of Regional Plantations Companies’ (RPC) inability to pay the promised daily wage of Rs. 1,700 saying that “unlike some of the state-owned plantation bodies… RPCs fulfills all its statutory obligations to its employees” adding that “no company could pay its workers beyond what it earns.” (Sunday Observer, February 09, 2025)

Tea farmers in Southwestern Uganda highlighted the  government’s failure to pay tea nursery operators the Shs93.12 billion they are owed for tea seedlings supplied over the years… many farmers have lost their collateral securities after borrowing to invest in tea, with resulting stress and high blood pressure reportedly even leading to deaths. (Monitor, February 07, 2025)

Innovation and tradition driving up value and demand

Croft Beverages, a farmer-first sustainable tea startup, has raised $125K in pre-seed funding through a combination of equity and debt and has established its first farmer-owned mini-factory in Billicombai, (S India) under its FPC (Farmer Producer Company) model. This initiative enables small farmers to triple their incomes. Croft Beverages aims to build a network of over 100 mini-factories by 2030. (Indian Retailer, February 12, 2025)

A Vietnamese cooperative formed by Nguyen Ngoc Tu has found a way to extract more value from tea by developing a method for utilizing mature tea leaves to create “Bancha tea — a Japanese tea known for its many health benefits.” (Ha Giang, February 13, 2025).

At the consumer end, there is reportedly a growing interest among health-conscious younger people in Malaysia. Law’s tea bar honors traditional Chinese tea brewing, Koh’s Beca Tea aiming to appeal to both conventional tea drinkers as well as those seeking out more contemporary fare that is better for them. (China Daily, February 11, 2025)Post content goes here

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