A quarterly newsletter published by EqualiTea, a project funded by European Union's Non-State Actors and Local Authorities in DevelopmentThe views expressed in this publication do not necessarily reflect the views of the European Commission.

ISSUE 03 | DECEMBER 2011

“Big plantations in Tripura are seeing theirproductivity decline. But for the small growers,productivity is constantly increasing. This indicatesthat STGs are the future of the tea industry,”said MrPabitra Kar, MLA, former Industry Minister,President of the All Tripura STG Association andChairman of the Tripura Industrial DevelopmentCorporation. He was addressing hundreds of smalltea growers fromTripura, Kerala, Tamil Nadu,WestBengal, Assam,Meghalaya, Bihar andMizoram on theoccasion of theobservance of theseventh InternationalTea Day onDecember 15, 2011,at Kailasahar, Tripura.

According to him, iftea cultivation can be encouraged, as it has beendone in Tripura through MNREGA, it will benefit thetea industry tremendously. Earlier that day, theSTGdelegates were taken to the tea nurseries and smalltea grower gardens maintained under the

MGNREGA scheme in the Gournagar RD Blockarea of the Kailshahar district. As the figurescurrently stand, 207 lakh tea seedlings grown innurseries have been distributed to 797 farmerscovering 702.5 hectares of land through theMNREGAscheme. In addition to this, there are over5000 STGs in Tripura who own land with an areabetween one acre and one hectare.

While addressing thegathering, BijoyGopal Chakraborty,President of theConfederation ofSmall Tea Growersin India (CISTA),stated that thegovernment hasbegun toacknowledge the

importance of small tea growers, who contribute toover 26 per cent of tea production in the country.“Our long standing demand for a separate cell for

Small Tea Growers ObserveInternational Tea Day

Chaa Sambadthe voice of small tea growers

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The first International Tea Day (ITD) was held in NewDelhi in 2005 and was attended by representatives ofsmall growers and workers from Sri Lanka, India,

Bangladesh, Nepal, Vietnam, Uganda, Kenya, Malawi,Tanzania, Zambia, Malaysia and Indonesia. The 2nd ITDwas observed in Sri Lanka in 2006 in Kandy with a mass

rally of tea workers. Since then, tea workers, smallgrowers and other stakeholders of the tea industry,

observe ITD all over the world.

Tripura is the fifth largest producer of Tea in thecountry, after Assam, Tamil Nadu, WestBengal, and Kerala. STGs produce 15 percentof Tripura’s tea. Tea plantation in the smallgrowers sector has been increasing becauseof innovative application of the MahatmaGandhi National Rural EmploymentGuarantee Act (MGNREGA) over last coupleof years.

In Tripura, over 3,000 small tea growers havebenefited through MGNREGA, especially intheGournagarRDBlock inKailasahar inNorthTripura. Now, Kailasahar’s STGs are earningRs 11 to Rs 12 per kg of green leaves sold tothe factories. During FY 2011-12, GournagarRD Block under MGNREGA has been raisingtea seeds in nurseries which will be used bysmall tea growers. This step will help STGsestablish tea plantations in the future.

Thirty nine percent of the total area of the stateis classified as reserved forest. Suitable agroclimatic conditions offer good potential fordevelopment of tea industry in the state. Now,forest department is providing tribal STGsareas for tea plantation under MNREGA.These plantation based activities will be ofspecial significance in the rehabilitation ofshifting cultivators and scheduled tribes ingeneral.

Scheme ConvergenceBenefitting STGs

Dayananda Pashidaya.pashi630@gmail.com

itself by creating associations and SHGs. As a national body, CISTA can play a great role in assistingthe STGs and creating a credit link to banks.”J. John, theExecutiveDirector of CEC, andMember, ExecutiveCommittee recalled that sustainabilityof STGs has social, economic and environmental dimensions. Recalling that more than 80 per centof farmers are subsistence farmers, he pointed out that CISTA should encourage socially responsiblecultivation. He said STGs should ensure that workers engaged by them can take care of their basicneeds. He also recalled that environmental responsibility can be assured only by being aware of thechemical inputs and its impact on soil, the plants and the people who consume tea.It was also shared that the EC meeting decided that Bodoland has been taken on as an AssociateMember, according to the by-laws of the CISTA constitution. Additionally, the General Body Meetingcomprised discussions on the price sharing formula, on the formation of a newSTGcell and regardinga workshop to be organized in Gauhati in March. It was states that the meeting with the Chairpersonof the Tea Board of India will be organized in Kolkata.One of the main amendments proposed to the CISTA constitution was with regard to the States andtheir membership. The General Body asserted that changes are needed in the CISTA constitution.

www.cec-india.org

The Fourth General Body Meeting of theConfederation of Indian Small Tea GrowersAssociations (CISTA) took place atKailasahar,Tripuraon the14thofDecember,2011. Representatives from Kerala, TamilNadu, West Bengal, Assam, Meghalaya,Mizoram and Tripura attended the meeting.The chief guest for this occasionwas PabitraKar, former IndustriesMinister, and currentlyMLA, President of the All Tripura STGAssociation and Chairman of the TripuraIndustrial Development Corporation. PabitraKar stated that STGs are the future of theIndian tea industry.Bijoy Gopal Chakraborty, the President ofCISTA presented the Association’s AnnualReport. He emphasized that the governmenthas begun to acknowledge CISTA and theimportance of STGs. “Our long standingdemand, for a separate cell to improveproduction techniques and marketing forSTGs, has been accepted by thegovernment,”he said.Baishyo, the Assistant Director of the TeaBoard of India (TBI) read out the messagefrom it’s theBoard’sDirector,Mr. Boriah, andreiterated that, on the national level, TBI iscommitted towards transforming STGs frombeingmerely tea producers to being both teaproducers and marketers. TBI’s policy aimsto organize STGs into Self-Help Groups(SHGs), to provide them with support.He added that, “There has been a significantcost realization due to the elimination ofintermediaries. CISTA should strengthen

CISTA Members Meetfor its Fourth GeneralBody Meeting

improving production techniques and marketingfor STGs has been accepted by the government,”he said. He appreciated the support that theGovernment of Tripura has given to thedevelopmentof the tea industry in thestateand theconcrete assistance it has provided to the smalltea growers.

Mr. J. John, Executive Director of CEC, said, “TheITD is a day of solidarity and an occasion to tell theworld: while drinking tea, remember those whoproduce tea.” He reminded the gathering that thefirst ITD observance had been a response to thecrisis in tea industry in 1998, particularly whenseveral estate gardens were closed down andsmall tea growers were given extremely low greenleaf prices. The situation, he said, has not radicallychanged. He emphasized, “ITD is an occasion onwhich the small tea growers and workers onceagain bring to the notice of the citizens of theworldthat there is an inherent injustice in the allocationof benefits along the teavaluechain, andanurgent

need for more equitable value sharing policies.” Inturn, the STGs must affirm the principles ofsustainability, environmental consciousness andhuman rights.

Others who addressed the meeting includedDinesh Kumar Sarmah (Senior Vice-President,CISTA and member, Tea Board of India), NarainChaudary (MLA), Ashit Bhattacharjee (Sabhapati,Gournagar RD Block), Krishnendu (PanchayatCommittee Chairman), Harishankar Prasad(Secretary, All Tripura STG Association), PanuMajumdar (Durgabari Tea Estate) and Das(General Manager, Manu Valley Tea Estate).Maveen Pereira and Neeti Malhotra fromTraidcraft, UK,werealsopresent. Shaji Chalivayal(Federation of STGA, Tamil Nadu), VanalalHmuaka (All Mizoram STG Association) andPronoy Basumatari (All Bodoland STGAssociation) also addressed the gathering andshared their reflections on the exposure visits inKailashahar.

International Tea Day

Pallavi Mansinghpallavimansingh@gmail.com

FROM PAGE 1

www.cec-india.org

On14December 2011, the fproject launchmeetingof the EU funded “Sustainable Livelihood for SmallTea Growers (STGs)”project, implemented byCentre for Education and Communication (CEC) inpartnership with Traidcraft, UK took place atKailasahar, the historical tea city in North Tripura.

With the overall project objective of reducingpoverty among STGs and with the specificobjectiveof enablingSTGsand their representativebodies to realise fairer terms of trade throughcapacity building, better bargaining power,networking and advocacy, the project intends toreach 50,000 STGs and 10,000 STG workers inIndia.

Mr. Pabita Sarkar, former Industries Minister andalso amember of the Tripura LegislativeAssembly,Chairman of the Tripura Industrial DevelopmentCorporation and President of the All Tripura STGAssociation was the chief guest. Mr. Bijoy GopalChakraborti, President of the Confederation ofIndian Small Tea growers Association (CISTA) andMr. Aswini Barua, President of the All AssamSmallTea Growers Association, were special guests forthe meeting.

Mr. J John, Executive Director, CEC, welcomed allthe participants, introduced the entire project teamand initiated themeetingbyexplaining theobjectiveof the project and enumerating its deliverables overa time horizon of five years.

Ms Maveen Pereira, Head, South East Asia ofTraidcraft explained Traidcraft’s role in addingvalue to the project through Masters Trainingprogrammes, networking and advocacy. She alsoadded that a part of the project was operating inBangladesh and that through exposure visits andcross-country experience sharing, STGs from boththe countries could benefit.

While speaking on the occasion, the chief guest,Mr. Pabitra Kar, explained how government policyinitiatives have changed the economic landscapeof Tripura. Pointing out that the educational statusin the state over the decade has improved, Mr. Karadded that economic empowerment by thegovernment has ended terrorism in the state. Heappreciated CEC for its efforts through the project,“Sustainable Livelihood for STGs” which workedtowards the formation of Primary ProducersSocieties (PPS). He confirmed that he would work

towards increasing localsupport for thesuccessful completion ofthe project.

Special guest Mr. BijoyGopal Chakraborti, thePresident of CISTAcongratulated CEC forexecuting the project infive states in India andrecollected that thatCISTA was the outcomeof a similar project thatCEC had executed in

Assam, West Bengal,Tamil Nadu and Keraladuring 2006-2009. Hestated that CISTA wasa truly national bodywith representation from all tea growing states inIndia and had been invited to the Tea Board’smeeting.Headded that theTeaBoardwas initiatingthe formation of separate STG Directorates, a keydemand of CISTA. He also explained in brief theorganisational structure and operationalmodalitiesof the new Directorates. Finally, he assured CECthat CISTA would support and maintain a fruitfulrelationship with CEC throughout the projectperiod.

Special guestMr. Aswini Barua, President of theAllAssamSTGAssociation congratulatedCECon theproject for the benefit of STGs. He mentioned thatwhile the Tea Board defined a small tea grower asa person with up to 10 to 13 ha (24 to 29 acres) oftea cultivation, more than 87 percent of small teagrowers of STGs in Assam were growing tea inholdings that were less than 3 acres (1.2 ha). Hementioned that this segment was the mostvulnerableoneandonewhichneededeffectiveandurgent intervention. He addressed the difficulty ofgetting the societies registered with TBI and alsomentioned the recent survey ofSTGsby theAssamgovernment Industries Department for cessutilisation. Finally, reiterated his congratulations toCEC for theproject andconfirmed theAssociation’sconsistent support.

A brochure of the project was released by J John inthe presence of the chief guest and the brochurewas circulated among all the participants. PallaviMansingh, ProgramManager, CEC offered vote ofthanks.

Sustainable Livelihood for Small Tea Growers (STGs):Project Launch Meeting

Tanmoy Chatterjeetanmoy@cec-india.org

Smallholder tea growing is a relatively new conceptin Bangladesh. Due to a shortage of saplings, cashand technical know-how, small and marginalfarmers inNorthBangladeshwere reluctant to growtea. They were under the impression that teagardenson their small holdingswouldnot help themearn a decent living. Those farmers who invested insmall tea gardens were not recognised or acceptedby the big players in the tea industry. As they had norepresentatives to give voice to their cause, theyhad to struggle a lot without any support or accessto resources that would improve the quality andquantity of their tea production. It was in such acontext that TraidCraft initiated a EU-fundedproject, “Sustainable Livelihoods for Small TeaGrowers” in April 2011 for small and marginalfarmers in Tetulia, in the Panchagarh Area ofNorthernBangladesh. TheSustainable Livelihoodsfor Small Tea Growers initiative is a joint India-Bangladesh project funded by the European Unionand co funded and implemented by TraidcraftExchange. In Bangladesh, this project is coimplemented by Bikash Bangladesh. Green Care

Agro Ltd. is providing technical and sapling supportto the project in Bangladesh.

At present, the project covers one thousand smalland marginal farmers who own very small plots offallow land. Research has proved that while manysmall plots of fallow land do not have a soilcomposition suitable for anymajor cash crops, theyare highly suitable for growing tea.

Since its inception, the project has organised 200small producers into 8 self help groups. Sixteenbarefoot service providers have been selected fromthese producer groups and have been giventraining on various technical aspects of teaproduction such as land preparation and pruning.Several additional training sessions are to beconducted in the months to come. The serviceproviders have their satisfaction with the trainingand are disseminating their learning among fellowgroup members. The project also provides saplingand other investment support to small producersand is helping them become micro entrepreneursby taking up small-scale tea plantation.

Small Holding Tea: The Means to Fight Poverty in Northern Bangladesh

Centre for Education andCommunication173-A, Khirki Village, Malviya NagarNew Delhi – 110017T: 91 11 29541858 / 29541841F: 91 11 29542464 E:cec@cec-india.orgW: www.cec-india.org

Prospects and Challenges for Assam Small Tea GrowersCess collection and its utilisation is one of the major issues facing Small TeaGrowers of (STGs) in Assam. According to the National daily ‘The EconomicTimes’, cess collection from Small Tea Growers (STGs) came into effect fromFebruary, 2009 under the name “The Assam Taxation (on specified land) Act2009. Mr. A Baruah (President – All Assam Small Tea Growers Association)mentioned that this Act was earlier named The Assam Taxation of SpecifiedLand Act 1990 and under this Act, tax was levied only on big tea estates ofAssam. The AASTGA moved the Guwahati High Court against this decision tolevy a cess. But now it is collected from STGs also.

The Association has always pressurised the government to withdraw thisdecision or to use the amount for the development of STGs of Assam, whonumber about 90,000 as per the latest survey conducted by the Directorate ofIndustry and Commerce in collaboration with AASTGA in 14 districts of Assam.According to government estimates, the total cess collected is Rs. 28 crore in2009-10. However, Mr. Baruah estimates a sumgreater thanRs 40 crore wouldhavebeencollected fromJuly2009 to31stMarch,2012.Heestimates theyearlycess collection at about Rs 18 to Rs 20 crores.

With the continued advocacy of AASTGA, the Government of Assam has comeup with a cess utilisation policy which aims to assist Self Help Groups (SHGs)and tea cultivation cooperatives. On the 29th of October 2011, The EconomicTimes,Kolkata, publishedanarticlewhichstated, “Since2009, thestate collectsa 25 paisa cess per kilogram of tea leaf produced by bought leaf factories inAssam, “… sensing the potential growth prospects of Small Tea Growers, thestate government has decided to support leaf carrying vehicles and renderfinancial help to SHGs and cooperative societies engaged in the cultivation oftea. There will be State level and District level committees to monitor the fundutilisation.”

In the first phase, the cess utilisation policy will be implemented in 14 teaproducing districts in the Brahmaputra Valley. The Economic Times articlequotedMr. KarunaMohanta, General Secretary of the AASTGAas saying, “Wehave demanded that the government must also contribute to this corpus fund.The cess utilisation policy drafted by the state cabinet would ensure properhealth and social security for labourers engaged under theSmall TeaGrowers.”

Challenges faced by STGs:

Thebiggest challenge thatSTGs face is thenon-realisationofpricesharingwithbought leaf factories. The Tea Market Control Order 2003 states that everyregistered teamanufacturer engaged in purchasing green tea leaves shall paythe supplier a reasonable price according to the price sharing formula, whichstipulates that the supplier should get 65 percent.

In addition, STGshave very little technical know-howandaccess to informationis very limited. This problem is further compoundedby the fact thatmost of themare not organised, further narrowing opportunities.

Another challenge they face is non-Ownership of land.Without the possessionof pattas, farmers do not get any financial assistance from banks and areineligible for any Tea Board schemes. This makes them more vulnerable toexploitation by middlemen and limits any entrepreneurial initiative. Theimposition of 25 paisa cess on every kg of tea leaves produced and fine of Rs200 on every bigha as land revenue on Government land under possession ofSTGs have added to the financial burden. This fine has been imposed as theSTG are growing tea in land that doesn’t have pattas.

Meanwhile, theAASTGAhas demanded that the government addresses theseissues by simplifying land policies and promoting institutional loans. With itscontinued endeavours, AASTGA has been able to influence the governmentenough for it to create a cess utilisation policy and form separate Directoratesfor STGs.

Another initiative that should be taken is one regarding organic tea plantation.This venture should not only be economically viable as it would reduce thedependence on chemical fertilisers and pesticides but would have a largescope for improving the livelihoods of STGs.

There needs to be simultaneous process of capacity building of STGs andimparting entrepreneurial skills. Easy and increased access to information, beit on government policies, scientific and technical know–how or market priceshas to be provided. Increasing the capacities of existing BLFs and setting up ofnew ones and fixing floor prices for green leaf are some areas which need tobe taken forward. The need of thehour is collective effort by allstakeholders towards ameliorating

Minto Goswamiminto.goswami81@gmail.com

In a rare endeavour, the Panbari Small Tea Growers Society (Registration No.S/1L/22905, 2004-05, under theWest Bengal Societies Registration Act, 1961)is gearing up to own a tea processing unit. The 335 STGs of the Panbari regionhave sold their land, cows and even pledged their families’ ornaments to raiseRs3.5 crores to set up this processingunit. Emphasingquality over quantity, thefactory is expected to produce around four lakh kilograms of processed teayearly.

The society has273hectaresof landandproduced9.63 lakh kilogramsof greenleaf in 2009 and 13.10 lakh kilograms in 2010, and is expected to produce 15lakh kilograms in 2011. The society sell their green leaf to the nearest BoughtLeaf Factories (BLFs).

“I happened to notice a set garden factory owner offering better price for greentea to middleman than to the society,” remarked Badal Chandra Debnath,President of the Panbari Society. “When questioned about why this differenceexisted, he pointed out rudely that brokers are more valuable to him than thesociety. This made me think of setting up our own factory.”

It was decided that themanagement’s decision on any issue will be final and noone will influence the decision. Creating a trustworthy brand in the industry andtaking the product to international markets will be the solemotive of the society.Members have further decided not to take home any percentage of profit untilthey have paid back their bank loans. It shall thus take them at least two and a

half years to repay all their loans before they begin to get a share of profit.

Until now, the growers have contributed approximately Rs 75 lakhs, whileapplying for a bank loan of Rs 1 crore. Around 50 lakhs will be taken from theSFAC, while the Tea Board of India through its ‘Schedule Caste CommunityGrowers’ scheme, will contribute Rs 1.5 crores. The TBI has assured thePanbari Society that this amount will be released by the 31st ofMarch,2012 andhas allowed the society to use its corpus fund as their working capital.

The foundation stone for this factory was laid on the 2nd of February, 2012 andthe hope in Panbari is that it will be a defining moment for the small growers ofthis region.

The Panbari experience has inspired two other SHGs in the Jalpaiguri Districtto set up their own factories. These societies areaffiliated to the Jalpaiguri SmallTea Growers’ Association.

Mr Bijoy Gopal Chakrobarty, Joint Secretary of the Association and thePresident of CISTA, remarks, “This project is the dreamof all small tea growers,not only fromNorth Bengal but from the whole country.We pray for the successof this project and we promise to give all our support and cooperation to makethis a success story.”

A Processing Unit for STGs: The Panbari Experience

Kaustav Roykaustav.roy998@gmail.com