The Economy of India's Northeast
Assam's Tea Economy
How Assam became one of the world's great tea regions, how plantations work, and the challenges facing tea workers and small growers.
Assam produces around half of India’s tea, making it one of the world’s largest tea-growing regions.
History
British planters established tea gardens in Assam from the 1830s, after tea plants native to the region were identified. They brought large numbers of workers from central India, whose descendants still work in tea gardens.
How plantations work
- Large estates own land, factories and worker housing.
- Workers pluck leaves by hand.
- Factories process leaves into CTC tea (for strong everyday tea) or orthodox tea.
- Tea is sold through auctions, such as in Guwahati, and directly.
Tea workers
Plantation workers have long faced:
- Low wages, among the lowest in organised sectors.
- Poor housing, health and education facilities.
- Health problems, including high maternal mortality rates in some tea areas.
The Plantations Labour Act, 1951 set standards, but enforcement has been weak. Wages have been raised several times after protests and political pressure.
Small tea growers
In recent decades, small tea growers with a few hectares have grown rapidly and now produce a large share of Assam’s tea, selling leaves to factories.
Challenges
- Price pressures: tea prices haven’t kept up with costs.
- Climate change: changing rainfall and temperatures.
- Competition from other countries and cheaper teas.
Premium opportunities
Specialty and orthodox Assam teas fetch higher prices in export markets, and GI tags protect the Assam tea name.
A cup of strong tea in Delhi likely contains leaves plucked in Assam by a worker earning a modest daily wage, processed in an estate factory and sold at a Guwahati auction.
Estates are communities with housing, schools and clinics, and their conditions shape workers' lives.
- Assam produces around half of India's tea.
- Plantations date from the 1830s, with workers brought from central India.
- Tea workers have faced low wages and poor conditions.
- Small growers now produce a large share of Assam's tea.
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