Tea body seeks clarity on Assam land transfer policy for plantation workers

The Tea Association of India (TAI) has urged the government in poll-bound Assam to address its concerns over the amendment of the law giving plantation workers the right to use land in tea plantations.

In February, the BJP-led State Government amended the Assam Land Holding Ceiling Fixation Act, giving legal land rights to 3.5 lakh families of plantation laborers working in over 800 tea plantations across the state.

Addressing the 37th biannual general meeting of the association’s Assam chapter, TAI president Shailja Mehta welcomed the government’s intention to provide land titles to plantation workers. However, he highlighted some administrative and legal complexities.

He said that many tea gardens mortgaged their lands as collateral for loans, and that the transfer of these lands could cause financial and legal difficulties.

“Also, the Land Ceiling Act applies only to land and not to company-constructed assets such as business premises. Therefore, adequate compensation should be provided under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013,” Ms. Mehta said.

He also touched upon legal obligations. “Under the Occupational Safety, Health and Working Conditions Act, 2020 (formerly the Plantation Labor Act, 1951), management remains responsible for housing and welfare services. Without relevant legislative changes, land transfer may lead to continued management liability,” he said.

Labor law changes

The association also expressed concerns about labor law changes that come into effect in November 2025, stating that approximately 60% of tea production costs are labor-related. He called on the government to take full account of in-kind benefits in wage calculations, rather than limiting them to 15%.

“However, the tea industry continues to bear a significant responsibility for providing in-kind welfare benefits under the Occupational Safety, Health and Working Conditions Act, resulting in a doubling of the financial burden and impacting sustainability,” Ms Mehta said.

TAI demanded the release of pending subsidies under the Assam Tea Industry Special Incentive Scheme, warning that delays could affect the financial stability of the sector.

The association also expressed concern about geopolitical tensions and potential disruptions in key markets including Iran, Iraq, UAE and China, amid reports of possible closure of the Strait of Hormuz. It warned that any disruption could impact export volumes, shipping routes and pricing.

India’s tea exports will reach a record high of 280 million kg in 2025, generating ₹ 8,488 crore.