Indian Tea Association Releases White Papers Seeking Revival Aid for Darjeeling and Dooars Plantations
The Indian Tea Association (ITA) has released two white papers addressing the challenges facing the tea industry across North Bengal and outlining proposals for its revival and sustainable development.
What Happened
On August 26, 2026, the Indian Tea Association published separate white papers focused on the Darjeeling Tea Industry and the Dooars and Terai Tea Industry. According to the association, these documents present an in-depth review of the structural, financial, climatic, labour, and market-related difficulties impacting these regions. Over recent weeks, ITA representatives presented their concerns in meetings with West Bengal Industry Minister Tapas Roy, Finance Minister Swapan Dasgupta, and Chief Minister’s Advisor Subrata Gupta.
Key Highlights
- Darjeeling Production Decline: Tea yield in Darjeeling dropped sharply from 14.49 million kg in 1990 to 5.6 million kg in 2025.
- Financial Package Proposed: The white paper for Darjeeling suggests an indicative annual support package of around Rs. 113 crore to safeguard the region’s Geographical Indication (GI) heritage.
- Areas Covered by Proposed Package: Support is sought for orthodox tea production, working capital interest assistance, transport, mechanisation, rejuvenation, factory modernisation, and social security.
- Market Asymmetry in Dooars and Terai: Small tea growers contribute 68% of the state’s tea production without statutory welfare duties, whereas organised estates bear costs for housing, healthcare, and compliance.
- Price Pressures: The ITA noted that this dual-cost structure depresses auction prices and challenges the viability of organised tea estates.
Why This Matters
The white papers point out that the steep fall in Darjeeling tea output risks the sustainability and global standing of its recognised GI heritage. Meanwhile, the cost imbalance between unorganised small growers and statutory-bound organised estates in Dooars and Terai creates severe pricing pressure at auctions, directly affecting the organised sector’s capacity to maintain operations, investments, and worker welfare provisions.
What to Watch Next
The ITA indicated that the white papers are intended to drive ongoing dialogue with the West Bengal government, with the aim of establishing time-bound and coordinated policy interventions to revive both production belts.
Frequently Asked Questions
What are the major proposals in the Darjeeling white paper?
The Darjeeling paper proposes an indicative annual financial support package of approximately Rs. 113 crore, targeting orthodox production, factory modernisation, transport, mechanisation, social security, rejuvenation, and working capital interest relief.
What issue was highlighted regarding the Dooars and Terai region?
The ITA highlighted a market asymmetry where small growers produce 68% of West Bengal’s tea without statutory welfare liabilities, while organised estates carry full compliance, housing, and healthcare expenses, leading to depressed auction prices.
Which officials did the Indian Tea Association meet?
ITA representatives met with West Bengal Industry Minister Tapas Roy, Finance Minister Swapan Dasgupta, and Subrata Gupta, Advisor to the Chief Minister.
Source: Reported by The Hindu.