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A Lifeline for Assam’s Tea Industry: Congress Urges PM Modi for Urgent Revival Package

September 18, 2025
in National, Politics
Reading Time: 4 min

GUWAHATI: The Assam Congress has sent a clear message to Prime Minister Narendra Modi: it’s time to rescue the state’s embattled tea industry. They’re urgently calling for a special revival package, highlighting how climate change-driven production losses and a steep decline in green leaf prices have plunged this vital sector into deep crisis.

In a recent letter to the Prime Minister, dated September 18, 2025, Congress Legislature Party leader Debabrata Saikia didn’t just ask for aid; he reminded Modi of the Bharatiya Janata Party’s (BJP) own broken promises. These include pledges to significantly raise the wages of tea plantation workers and grant them Scheduled Tribe (ST) status, commitments that remain unfulfilled.

Saikia pointed out that despite the Prime Minister’s two visits to Assam within eight months in 2025, where he inaugurated projects exceeding ₹19,000 crore and often emphasized his humble origins as a ‘chaiwallah,’ the 3.5 million people relying on the tea industry were left without the much-needed comprehensive revival package they had eagerly anticipated.

The Brewing Storm: Climate Change’s Devastating Impact

He elaborated on the dire situation, stating, ‘Assam’s tea industry, responsible for a staggering 55% of India’s total tea output, is in freefall, with production slumping by 7.8%. This crucial sector, which directly employs over a million workers, is grappling with severe financial hardship as tea leaf prices have plummeted from ₹52 per kg to a mere ₹15 per kg – significantly less than the ₹25-27 per kg cost of production.’

Saikia underscored how climate vulnerabilities are relentlessly battering tea planters and producers. Erratic rainfall patterns and soaring temperatures, reaching 40-41°C in key tea hubs like Jorhat in eastern Assam—far surpassing the ideal 27°C for premium tea cultivation—are wreaking havoc. ‘These alarming figures demand immediate and comprehensive action to avert the complete collapse of this indispensable industry,’ he asserted.

Unfair Wages: A Stark Comparison

The Congress leader voiced deep disappointment over the Prime Minister’s failure to honor his 2014 election promise to increase daily wages for Assam’s tea workers to ₹351. ‘Currently, workers in Assam are paid just ₹220-250 per day,’ he stated, ‘a stark contrast to their counterparts in Kerala, who earn ₹470 daily, and those in Karnataka and Tamil Nadu, who receive ₹480.’

He further highlighted the precarious situation of 600,000 workers in small tea gardens, who currently lack basic wage protections, despite these gardens contributing a substantial 40% to Assam’s total tea production.

Saikia also urged for a complete overhaul of India’s current tea auction system, describing it as ‘increasingly detrimental to producers, particularly small tea growers and bought leaf factories.’ He noted that the system is plagued by volatile prices, a severe lack of transparency, and a troubling trend of large quantities of tea remaining unsold.

The Unsold Harvest: A Growing Crisis

He presented alarming statistics: ‘Unsold tea volumes have surged dramatically. Guwahati auctions reported 36% unsold lots in 2025-26, a significant jump from 23% in the previous fiscal year, while Kolkata witnessed an increase from 18% to 26%.’ He added, ‘At the ground level, small tea growers are receiving only ₹13-15 per kg for green tea leaves, even though their processing costs range from ₹19-20 per kg, pushing these growers into severe financial distress.’

Saikia outlined a multi-pronged strategy to address the tea industry’s woes: establishing a minimum sustainable price for processed tea and green leaf, directly tied to production costs; enforcing mandatory sale of a substantial portion of tea through auctions; implementing stricter regulations to prevent buyer cartelization; and streamlining payment cycles to safeguard producers’ vital cash flow.

Furthermore, Saikia called for the immediate reinstatement of the ₹50-crore annual funding to the Tocklai Tea Research Institute to revitalize critical research initiatives. He also requested an allocation of ₹200 crore for a dedicated Climate Adaptation Research Mission, specifically aimed at developing robust, drought-resistant tea varieties crucial for the industry’s long-term survival.

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