Assessing Production Costs and Profitability Dynamics of Small Tea Growers: Evidence from Dibrugarh and Tinsukia Districts of Assam, India

Background: Small tea growers have become an important component of Assam's tea sector, but production costs and farm-level returns may vary with holding size. Aim: This study examined the cost structure, production performance and profitability of small tea growers in the Dibrugarh and Tinsukia districts of Assam. Methods: A multistage sampling approach was used to select 197 growers, including 92 respondents from Tinsukia and 105 from Dibrugarh. Primary data were obtained through personal interviews and supplemented with secondary information. Growers were grouped into marginal-small, small-scale and medium-small categories. Establishment and annual maintenance costs were analysed using Costs A, B and C, alongside yield, gross returns, net returns and benefit–cost ratios. Results: The average establishment cost was ₹2,21,849.98 per hectare. Cost C was ₹2,12,714.63, ₹2,30,271.71 and ₹2,40,059.89 per hectare for marginal-small, small-scale and medium-small growers, respectively. Hired labour accounted for approximately 60% of Cost A across categories. Yields increased from 14,400 to 16,650 kg per hectare across the categories, while farm-gate prices were ₹27/kg for marginal-small growers and ₹28/kg for the other groups. Net returns at Cost C ranged from ₹1,76,085.38 to ₹2,26,140.11 per hectare, with corresponding benefit–cost ratios of 1.82–1.94. Conclusion: All three categories recorded positive net returns, although marginal-small growers had lower yields, prices and profitability indicators than the other groups.