Assam, in northeastern India, is famous for its tea. While large tea estates dominate the scene, small tea growers (STGs) with less than 25 acres of land also contribute

significantly. However, these small tea growers face many challenges that affect their livelihood.

Economic Challenges Faced by Small Tea Growers in Assam

1. Fluctuating Tea Prices:

1. The price of green leaf tea changes a lot. In 2019, the average price was around ₹17-20 per kilogram, but it dropped to ₹10-12 in 2020 due to the

pandemic and market changes.

1. Small tea growers have little power to negotiate prices, making their income unstable.

2. High Cost of Production:

1. It costs about ₹13-15 to produce one kilogram of green leaf tea. Small growers often find it hard to cover these costs because they don't produce in

large quantities like big estates.

1. Access to affordable loans is limited. Many small growers have to borrow money at high-interest rates, which adds to their financial burden.

3. Lack of Financial Support:

1. Only 30% of small tea growers have access to bank loans and financial aid. The other 70% depend on informal loans with high-interest rates of 24-36% per year, making it tough to manage finances.

Technical and Agricultural Challenges

1. Lack of Technical Knowledge:

1. Only 25% of small tea growers have received formal training in modern farming techniques. This lack of knowledge leads to inefficient farming practices and lower yields.

2. Poor Quality of Inputs:

1. 60% of small tea growers use low-quality fertilizers and pesticides. This results in 15-20% lower yields compared to those who use high-quality inputs.

3. Pest and Disease Management:

1. In 2019, 40% of small tea plantations in Assam were affected by pests and diseases. Lack of effective pest control leads to a 10-15% loss in annual production.

Marketing and Supply Chain Issues

1. Dependence on Middlemen:

1. About 70% of small tea growers sell their produce through middlemen who take a 10-15% commission. This reduces the profit margins for the growers.

2. Inadequate Infrastructure:

1. Poor Road conditions in rural areas cause delays in transporting green leaf to factories, leading to a 5-10% reduction in quality and selling price.

3. Lack of Market Information:

1. Only 20% of small tea growers have access to real-time market information. This lack of information makes it hard for them to make informed decisions about when and where to sell their tea.

Social and Labor Issues

1. Labor Shortages:

1. 60% of small tea growers report difficulties in hiring labor, especially during peak seasons. This is due to competition from large estates and other industries, and migration of workers to cities for better jobs.

2. Low Wages and Poor Working Conditions:

1. Laborers in small tea plantations earn ₹150-180 per day, compared to ₹200- 250 in larger estates. Poor working conditions and lack of benefits make it

hard to retain workers.

Environmental and Sustainability Issues

1. Degradation of Soil Health:

1. Continuous tea cultivation without proper soil management has led to a 20- 30% reduction in soil fertility in small tea plantations. This reduces yields

and increases dependency on chemical fertilizers.

2. Water Management:

1. 40% of small tea growers face water shortages during dry seasons, which affects irrigation and leads to a 10-15% reduction in tea yield during drought periods.

Government and Policy Support

1. Limited Access to Subsidies:

1. Only 30% of small tea growers benefit from government subsidies and support schemes. Bureaucratic hurdles and lack of awareness prevent many growers from accessing these benefits.

2. Need for Comprehensive Policies:

1. There is a need for the government to develop targeted policies to support small tea growers, including better access to credit, training programs, and infrastructure development.

Small tea growers in Assam face numerous challenges, from economic instability and high production costs to lack of technical knowledge and poor market access. Addressing these issues requires a combined effort from the government, better access to resources, and improved infrastructure. With the right support, small tea growers can increase their productivity, adopt sustainable practices, and improve their livelihoods, contributing more significantly to Assam’s tea industry and economy.

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