Indian Tea Industry at Crossroads of Sustainability: A Case of Tea Plantation

The Indian tea industry, the second-largest employment provider in the formal sector, is facing a severe crisis characterized by stagnant production growth and a steady rise in domestic consumption. The liberalization policies of 1991 and subsequent international trade agreements, including the ASEAN Free Trade Agreement (2009), have intensified competition from low-cost imported teas. These challenges are exacerbated by rising production costs, restricted market access, and non-tariff trade barriers, resulting in the closure of numerous plantations. This has disproportionately affected plantation workers, leading to job losses, starvation, and malnutrition. This study aims to analyze the causes and consequences of the ongoing crisis and propose strategies for sustainable growth, focusing on Assam and West Bengal. The research leverages secondary data from the Tea Board of India and Tea Statistics, spanning 1991 to 2014 for the analysis of Employment trends, and 1992 to 2014 for exploring socioeconomic impacts interlinked with the increasing import of tea into the economy. Its findings aim to inform policies that build resilience and foster sustainability in the Indian tea industry amidst a challenging global and domestic landscape.