North Bengal Tea Industry Seeks Government Approval for Land Diversification
In a bid to mitigate recurring financial losses, tea garden owners in North Bengal are pressing the state government to allow the utilization of unused leasehold land for commercial development. This appeal was formally presented during the 54th Annual General Meeting of the Tea Association of India's north Bengal chapter, held in Binnaguri, Jalpaiguri, on Saturday.
Urgent Call for Commercial Projects on Unused Land
Uttam Chakraborty, chairman of the north Bengal chapter, emphasized that the association has submitted a detailed request to the government. The proposal advocates for permitting projects such as industrial and logistics hubs, biotechnology parks, IT parks, food parks, and residential townships on garden land. This would be facilitated through the payment of salami or rent, providing a new revenue stream for the struggling industry.
Shailaja Mehta, president of the Tea Association of India, confirmed that a recent presentation was made to the state government, highlighting the necessity of allowing garden owners to repurpose unused land for commercial activities. "While the matter remains pending with the state authorities, we maintain an optimistic outlook regarding a favorable decision," Mehta stated.
Current Land Use Policies and Industry Challenges
Currently, the government permits the use of only 15% of unused garden land for non-tea purposes. Prabir Bhattacharjee, secretary general of the Tea Association of India, expressed the industry's desire for greater autonomy. "We simply urge the state not to impose strict dictates on how we utilize this land, as flexibility is crucial for our survival," he remarked.
This request emerges against a backdrop of severe price erosion in the tea sector. Data reveals that North Indian teas averaged Rs 204.5 per kilogram in 2025, marking a 10% decline from the previous year. The Siliguri Tea Auction Committee reported that Dooars tea in the organized sector fetched Rs 215.5 per kg, while Terai tea stood at Rs 176.5 per kg. In contrast, the unorganized sector saw significantly lower prices of Rs 123.7 per kg and Rs 116.5 per kg, respectively, reflecting quality disparities that directly influence market rates.
Subsidy Demands and Production Shifts
To enhance competitiveness, the Tea Association of India is also advocating for state subsidies to encourage a shift from CTC (Crush, Tear, Curl) to orthodox tea production. Bhattacharjee pointed to Assam's model, where a 10% subsidy is provided, with potential increases to 15%. "We have earnestly requested Bengal to adopt similar supportive measures to boost our industry's prospects," he added.
Highlighting the economic benefits, Bhattacharjee noted that India produced 140 million kilograms of orthodox tea in 2025, primarily exported at lucrative prices. "Without such strategic interventions, Bengal's tea industry faces an uphill battle to remain viable," he warned.
Regional Impact and Employment
The North Bengal region encompasses 178 tea gardens in Dooars, 45 in Terai, and 84 in Darjeeling, collectively employing over three lakh workers. The proposed land diversification aims not only to stabilize the industry but also to safeguard these livelihoods amidst ongoing economic pressures.
