Sections of Tea Act suspended to boost production

The Ministry of Commerce and Industry has suspended operations of Sections 12 to 16, Section 39 and Section 40 of Tea Act 1953. The move intends to make a higher supply of tea in the system, which is under the pressure of lower price realization.

Under Tea Act’ 1953, Sections 12 to 16 deal with methods to control the cultivation, limitations to expansion of cultivation, granting permission to grow tea. Section 39 and 40 of the Tea Act’ 1953 deal with illicit cultivation and plantation of tea without permission. Now, there will be no bar on the expansion of estates and grant of permission to grow tea on a ‘non-tea land’.

For small tea growers, cost of production is much lower than that of organised tea industry, which bear fixed labour costs. Labor accounts for around 70% of their total cost.  An official said, “These rules have been violated by people, particularly in the North-East, leading to indiscriminate rise in production. Now there is very little land left to be utilized for plantations.”