AEIJST - August 2016 - Vol 4 - Issue 8 ISSN - 2348 - 6732

Problems and Prospects of Tea Factory Workers A Study with Reference To the Nilgiris
District, Tamil Nadu
*P.Radha
**G.Mary Suji
*Professor, Department of Management, SNT Global Institute of Management Studies and
Technology Madhukarai, Coimbatore.
** Assistant Professor Department of Management, Bharathiar University arts and Science
College, Gudalur-The Nilgiris.
Introduction
Tea is one of the most popular and lowest cost leverages in the world and consumed
by a large number of people. Tea cultivation is confirmed only to certain specific regions of the
world due to the specific requirements of climate and soil conditions. The majority of the tea
producing countries is located in the continent of Asia, where China, India, Sri Lanka are the
major producers. Africa tea growing countries are located mostly around the tropical regions
where Kenya, Malawi, Rwanda, Tanzania, Uganda are the major producers. Apart from these
regions, some quantities of tea are also being produced in South America (Argentina, Brazil,
and others), the Near East (Iran and Turkey) and the CIS (Russia and Georgia). Amongst these
tea producing countries, the principal producers are China, India, Sri Lanka, Kenya and
Indonesia. These five countries account for 77 per cent of world production and 80 per cent of
global exports.
Orgin of Tea in India
Although the development of tea as a thriving industry in India has been more recent,
historical records indicate the prevalence of tea drinking in India since 750 BC. the ultimate
thrust towards commercial cultivation was driven by the incorrigible tea addiction by British.
Chinese varieties of tea were first introduced into India by the British, in an attempt to break
the Chinese monopoly on tea. The British, using Chinese seeds, plus Chinese planting and
cultivating techniques, launched a tea industry by offering land in Assam to any European
who agreed to cultivate tea for export. Maniram Dewan(1806-1858) was the first Indian tea
planter, and is credited with establishing the first commercial plantations if the Assamese
variety of tea.
Indian Scenario
India is the largest producer and consumer of tea in the world. India also leads in
global Research and Development in the tea industry. India is the largest manufacturer and
exporter under the British management. The farm ownership, however, is fragmented. The
listed companies account for about 40 per cent of total tea plantation. Also, there are a large
number of small players. Some 80 per cent of the farms are of the size less than 8 hectares
and contribute only 10 per cent of the production. The annual per capita consumption in
India is low at 650gm compared to other countries like Pakistan (950gm), Sri Lanka (1.2kg),
UK (2.5kg) and Ireland (3.16kg).
The labour cost is the largest cost overhead accounting for 60 percent of the total cost
of production of Indian tea because the tea plantations are not just economic production unit,
but rather social institutions, which controls the lives of their resident work force to a large
extent. Apart from employment, the plantations are also responsible for providing housing,
water, welfare and many other facilities that affect the daily lives of the workers. This is
because most of the employees come from socially and economically weaker sections of the
society and the majority of employees are women who work and reside in an ideal industrial
community. Their livelihood is directly linked with the prosperity of the tea industry.
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AEIJST - August 2016 - Vol 4 - Issue 8 ISSN - 2348 - 6732

Therefore, the tea industry must grow, not only to fulfill its primary function of producing a
wholesome beverage for domestic and overseas consumer, but also to fulfill its social
obligations in sustaining and improving the well-being of all those who are dependent on its
fortunes. India has been a dominant player in the global tea industry. Despite its fluctuating
situation in the share of world exports, India is still a key source for tea as well as the largest
market.
About Tea Production in India
Botanical name of tea IS Camellia Sinensis. After water, tea is the most widely
consumed beverage in the world. Tea is an evergreen plant that mainly grows in tropical and
subtropical climates. It is thought to have originated in East Asia somewhere between China
and Burma. Commercial cultivation of tea started in India from British era when Robert Bruce
in 1823 discovered tea plants growing wild in Upper Brahmaputra valley. In May 1838 the
first Indian tea from Assam sent to England for public scale.
About The Crop
Tea grows in a moderately hot and humid climate, which is preferred for better yield,
crop distribution and quality. An ambient temperature within 13 C and 28-32 C is conducive
for growth of tea. Temperature above 32 C is unfavorable for optimum photosynthesis. It is
synergically disastrous for the crop if it is accompanied by low humidity. In India, the
temperature in winters is around or below 12 C and there is hardly any growth during this
period. This is called Winter Dormancy.
Production Figures
India is worlds second largest tea producer after China. In 2013, Indias estimated tea
production was 900 million kilograms, which counts for around 23-24% of global tea
production. India is the largest producer and consumer of Black Tea in the world. Tea is
grown in 16 states in India. Assam West Bengal, Tamil Nadu and Kerala account for about 95
per cent of total tea production. The top five producer countries of tea are China, India, Kenya,
Sri Lanka and Turkey.
Major Tea Producing States in India
Tea plantation in India was started in 1823, when wild lea plants were discovered by
the British in the forest of Assam. India produced over 1.1 million tones of tea during 2012
and over 1.2 million tonnes during 2013. Hence, India is ranked second among the largest tea
producing countries in the world, next only to china. The Eastern Himalayas of India present
ideal conditions for tea plantation. The foot-hill regions of the Eastern Himalayas and the
Brahmaputra valley are among worlds largest tea plantation regions.
The Worlds Top 10 Tea Producing Nations
Based on UN Food and Agriculture Organisation statistics for global production from
1993-2013, the following tea-producing nations in the world are: (Published: April 20, 2015)
1. CHINA (1,000,130 TONNES), INDIA (900,094 TONNES) ,KENYA (303,308 TONNES)
SRI LANKA (295,830 TONNES), TURKEY (174,932 TONNES), INDONESIA (157,388 TONNES),
VIETNAM (116,780 TONNES), JAPAN (88,900 TONNES), ISLAMIC REPUBLIC OF IRAN (83,990
TONNES), ARGENTINA (69,924 TONNES)

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AEIJST - August 2016 - Vol 4 - Issue 8 ISSN - 2348 - 6732

Types of Tea Production in India

The pattern and types of production of tea id directly linked to the market demand and
different sales practices of each region. The market demands sometimes force producers to
change the nature of production and mode of manufacturing of tea. The nature of production
mainly includes chemical to organic forms: and the type of tea shifts from orthodox tea to
CTC. The consistent demand for organic tea from Germany, for instance, forced some
producers in Coonoor to stay with organic cultivation. The high demand from the EU
countries for Darjeeling plantations. Tea is traditionally classified based on the degree or
period of fermentation (oxidation) the leaves have undergone.
White Tea: Made from young leaves (new growth buds) that have undergone no
oxidation. White tea id produced in lesser quantities than most of the other types, and can be
correspondingly more expensive than other tea from same plant processed by other methods.
It is also less well-known in countries outside China.
Green Tea: when tea leaves are picked, they generally whither and dry and when this
occurs, oxidation takes place. In the manufacture of green tea, the oxidation process is
stopped after a minimal amount of oxidation by application of heat. The tea is processed
within one or two days of harvesting. However green tea possesses a grassy taste and it loses
its flavor within a year.
Oolong Tea: Being of Chinese origin, this tea is a cross between the popular black and
healthy green varieties and the two styles commonly associated with this tea are green and
amber. It is semi-fermented tea, where the oxidation process takes 2-3 days.
Black tea: This tea is stronger than any other type of tea. In black tea production, the
tea leaves are allowed to completely oxidize. Black tea is the most common form of tea in
South Asia (India, Sri Lanka, Bangladesh, etc) and also in Kenya. Black tea is further
classified as either orthodox or CTC (crush, tear, curl). Orthodox and CTC teas are further
graded according to the post-production leaf quality by the Orange Pekoe (OP) system. Black
tea contributes 97.7 per cent of production, and Darjeeling Tea 1.2 per cent of production (or
around 5 million kilograms per annum). In India, till the 1960s orthodox tea dominated
Indias tea production. Till the 1980s, the share of orthodox tea was significant (32 per cent).
However, since the 1990s, CTC tea has recorded a sharp rise and now share 90.8 per cent of
tea production in India. The share of orthodox tea (6.9 per cent),and Darjeeling tea (1.2 per
cent) Green tea
Price Formation Process
A price formation process in the Indian tea auction is itself a complex process and the
outcome is the result of a complex interplay of various factors. There are certain inherent
flaws in auction mechanism like cartelization, proxy- bidding, divisibility of lots etc. Still, it is
difficult to deny its importance in price determination and subsequent influence on the
survival of the industry as a whole. The context has become more complex in recent years.
First in the emergence of smallholder-BLF sector in a prominent manner in the Indian tea
industry. Second, there has been a reorganization of tea trading structure in India in the
liberalized economic environment. Tea trading witnessed a spate of mergers and acquisition
during the latter half of 1990s and early 2000. Third, tea is positioned more as a branded
product in recent years. Fourth, volume of sales in the auction is showing a declining trend in
the last decade. But, for majority of tea producers auction still remains the most important
means for price determination.
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Tea Scenario in Nilgiris-Tamil Nadu
Dr.Christ pioneered the tea industry in South India. He experimented with effective
planting methods of tea in the Nilgiris in 1834. The plants were dispatched from Calcutta not
only to the Nilgiris but also to other areas like Coorg, Mysore and Coimbatore (Valparai)
districts in South India. The gaining strength of the industry led to the establishment of the
Indian Tea Association (ITA) in 1881 and the United Planters Association of Southern India
(UPASI) in 1894. The ITA was the first association in tea that represented the North Indian
planters the UPASI was the principal representative organization of the South Indian planters.
The primary objectives of these organizations were to bring about unity amongst the owners
and managers of tea estates, to negotiate with the government and trade unions on behalf of
the labourers and the like.
The Nilgiris tea plantations are represented by the Nilgiris Planters Association, which
is an organizational member of the United Planters Association of Southern India (UPASI),
headquartered in Coonoor. UPASI is the peak body representing plantation owners in South
India. The vast majority of production is undertaken by small growers, who typically own less
than one hectare each. The majority of Nilgiris tea small growers are the Badagas, a local
community of agriculturists.
Tea plantations in Nilgiri District typically own and operate their own process factories. Small
growers sell their tea as green leaf to bought leaf factories , which are independently owned.
Although in recent years, some plantation factories have started buying green leaf from small
growers. After processing, most is sold through regularly scheduled auctions in Coonoor,
Coimbatore and Kochin. More than 50% of Nilgiris tea is exported, and usually finds its way
into blends used for tea bags.
Statement of the Problem
Tea Plantation Industry is an important industry in Nilgiris District (Tamil Nadu) and it
plays crucial roles in income generation, Foreign Exchange and Employment Generation both
directly and indirectly. The transformation of Tea Plantation industry in Tamil Nadu has
brought substantial changes in the level of competition, business environment, managing
strategies, service quality and the advance technology front. The winds of liberalization,
globalization and privatization have opened new vistas in this in the generation of an intensely
environment.
This research mainly focuses on the problem plaguing labors in tea gardens.
There is higher level production is shown in tea plantation and due to variance causes,
the auction price of the tea has seen a steady decline and all the profits from the tea gardens
were siphoned off and there was no real reinvestment in improving quality of tea.
Un favorable climatic conditional like heavy rainfall have badly affected the tea industry
which cause pest problem, and disease is been affected many plantations. The laborers suffer
from variants discuses and health problems due to poor working conditions in the tea
factories. The major health problem faced by the laborers are worm infestation like mosque to
bug and leach.
The laborers are paid the lowest wages in comparison to any other laborers in the
organized sector even during the peak season, laborers get low wages which is much lower
than the harvest [for 1 kg they get 6.50 to 7 ]. The laborers has very less holidays, they get
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leave only once in a week that too on Sunday and they have to put this hardship in rest of
days.
Most of the tea garden laborers are basically from the adivashi community and the
local people, There people are the most exploited ones in the tea gardens; they are also used
as certain time, which plays a high draw back.
Findings
1. There are multiple problems being faced by the tea industry such as finance crisis due to
lower price for the tea plantation, it leads to a hopeless situation resulting in low production
which decline the salary of the laborers.
2. The labourers suffers from varions health problem which leads to less safety for labourers.
3. The leaves given to the labourers are very limited.
4. Women labourers are not provided with special offers (It has been found that women are
engaged in hard jobs even during pregnancy and post natal perioed).
5. Even if there is like in price or in production of tea plantation, labourers are not provided
with bonus.
Suggestions
1. They have to increase the wage of the labourers as there is hike in production and in price
level.
2. Labourers should be provided with special medical care.
3. Labourers should be provided with more leave.
4. There should be special beneficial scheme provided to both men and women.
5. The labourers should be paid as provided with bonus during festival time.
Conclusion
In this research I have pointed out the problems faced by the labourers and have also
suggested the remedies for the problems faced by them in varions factors like (wages, working
days, health, benefits, bonus etc).
References
1. Boyce, lames K.(1987), Agrarian impase in Bengal :Institutional constraints to
Technological change, Oxford University Press, Oxford.
2. Government of Kerala (2000), Economic Review, State Planning Board, Tbiruvanatbapuram.
3. Government of Kerala (2001), Economic Review, State
Planning Board,
Thiruvananthapuram. 4. Maxwell, Sirnon and Fernando, Adrian (1989), 'Cash Crops in
Developing Countries: The issues, the Facts, the Policies,' World Development, Vol. 17, No: 11.
5. MERLIN JOSEPH Problems And Prospects Of Tea Plantation Industry In Kerala Thesis
submitted to the Cochin University of Science and Technology for the award of the degree of
PhD., in economics under the Faculty of Social Sciences.

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