Problems of tea industry need to be urgently addressed

Tea Industry developed during the nineteenth century in Assam and especially in Sylhet. Primarily, the British planters initiated the cultivation of tea on the slopes of the hillocks of Sylhet and the highlands of Assam. In 1839, Assam Tea Company was formed at a meeting of some British capitalists and Indian entrepreneurs like Prince Dwarakanath Tagore, Babu Motilal Sil, Haji Hashem Ispahani and others. The Company formally launched on  February 12, 1839 in London with a capital of $500,000 and it later merged with the Bengal Tea Association of Kolkata.
 The first tea garden in the territories now constituting Bangladesh was established in 1854 at Malnichhara in Sylhet. Two other tea gardens, Lalchand and Matiranga were established in 1860.
Most of the 166 tea estates in Bangladesh are located in the North-eastern region - Maulvi Bazar, Hobiganj, Sylhet and Brahmanbaria districts. There are some tea estates in Panchagar and Chittagong districts.
The tea estates in Bangladesh annually produce about 59 million kg of tea. In 2000, country occupied 9th position among the 30 tea producing countries of the world, but in 2008 it was downgraded to the 11th position. Production rose by one per cent to 59.24 million kg but exports fell 68 per cent to 2.53 million kg in 2009.

 In the year 2000, the country's tea production was 1.80 per cent of the 2.94 billion kg produced worldwide.
Owners of tea gardens include both foreign and local companies. While four Sterling companies own 27 estates, Bangladeshi companies and individuals own the rest of the tea gardens. The four foreign companies are James Finlay, Duncan Brothers, Deundi Tea Company and The New Sylhet Tea Estate. All the 166 tea estates are managed by five different categories of management:  (i) Sterling companies, (ii) National Tea Company, (iii) Bangladesh Tea Board, (iv) Bangladeshi Private Limited Companies, (v) Bangladeshi Proprietors.
The estates are categorised into three types according to their production capacities. They are: (i) Category A: All the 'A' category estates that have the highest productivity belong to the British companies (fully or partially). (ii) Category B: The Bangladeshi government, Bangladeshi tea companies or Bangladeshi individuals own this category of estates. (iii) Category C: The family-owned small and low productive estates belong to this category. Wages and working conditions are at their worst in the tea estates under this category.
First commercial cultivation of tea started in Bangladesh at Malnicherra, Sylhet in 1854. Since then tea has developed as an agro-based, labour intensive and export oriented industry in Bangladesh. During the partition in 1947, Bangladesh owned 103 tea estates, covering 28,734 ha of tea plantation with annual production of 18.36 million kg yielding about 639 kg per ha. With the passage of time, the industry had to struggle through manifold constraints to increase the number of tea estates to 166 and small growers/holders about 600, allotted land 116,219 ha and tea plantation 58,719 ha in 2013.
The country produced 66.26 million kg of tea yielding 1320 kg/ha, consumed about 64.00 million kg (400 grams/per head) and exported 0.85 million kg in 2013. Tea plays a significant role in the national economy through employment generation, export earnings as well as import substitution and poverty reduction in rural areas.  It provides direct employment to about 133,000 people, 50 per cent of whom are women.  Tea-related forward and backward linkage activities engage about 500,000 people.
Domestic consumption has been increasing very fast at 3.20 per cent while production has been increasing at 2.00 per cent for the last five years in Bangladesh. Domestic consumers presently consume about 95 per cent of its produce, leaving very little for export. Due to lack of exportable surplus the country exported only 0.85 million kg in 2013.
The Bangladesh Tea Board has undertaken a 12-Year Strategic Development Plan for Tea Industry of Bangladesh - Vision 2021 with a view to enhancing production, improving quality, increasing export of tea and improving standard of living of tea workers. The target is to raise production up to 100 million kg by 2025. The tea industry has the potential and capability to increase production. The country has 9705 ha very old and uneconomic tea area that yields only 496 kg/ha. This tea area needs to be replanted with improved variety of planting materials. Further about 4698 ha suitable land is available in 106 tea estates. Moreover we have ample scope to increase our tea area through small-holding tea cultivation in the northern part of the country and in the three hill districts of Chittagong Hill Tracts.
The tea industry sustained major damage during the war of liberation in 1971. The Bangladesh government appointed a committee in 1972 to investigate into the problems faced by the tea planters. Some useful suggestions were: (a) to raise productivity, (b) to reduce cost of production, and (c) to promote and strengthen the process of marketing. But the problems relating to the working conditions, the standard of life and the wellbeing of the tea garden workers were not addressed that much.  
In the 1970s, 1980s and 1990s overseas firms remained in the dominant position both in area and production. The gardens owned by foreign sterling companies were generally about three times bigger than the locally owned gardens and the production per acre was higher. Despite an increase in yields, exports are likely to fall further as the internal consumption is rising. By comparison, Bangladesh tea exports peaked at 31 million kg in 1980 when production was 40 million kg. Bangladesh exports tea to the following countries: Afghanistan, Australia, Belgium, China, Cyprus, France, Germany, Greece, India, Iran, Japan, Jordan, Kazakhistan, Kenya, Kuwait, KSA, Kyrghistan, Oman, Pakistan, Poland, Russia, Sudan, Switzerland, Taiwan, UAE, UK and USA.
The tea industry of the country faces problems as some gardens have become sick and their workers are 'surplus' and in wretched condition. These problems need to be urgently addressed for the prosperity of this vital industry.  
The writer is a retired Professor
of Economics, BCS General Education Cadre.
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