EMERGENCE OF SMALL TEA GROWERS (STGS) IN ORGANIC TEA CULTIVATION: ITS CHALLENGES AND OPPORTUNITIES - A CASE STUDY IN GOLAGHAT DISTRICT OF ASSAM

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1 EMERGENCE OF SMALL TEA GROWERS (STGS) IN ORGANIC TEA CULTIVATION: ITS CHALLENGES AND OPPORTUNITIES - A CASE STUDY IN GOLAGHAT DISTRICT OF ASSAM Diganta Kr. Mudoi, Asst. Prof. Dept. of Economics, D K D College, Dergaon ABSTRACT Looking into the various prospects of small tea cultivation in Assam this study tries to explore the potential factors behind the rapid growth of the Small Tea Growers (STGs) in the Golaghat district of Assam. It also identifies the opportunities of organic tea cultivation on small holding. The study is an exploratory work primarily based on sample survey. Both primary and secondary data are used. For the present study the definition of STGs is taken on the basis of the norms fixed by the Tea Board of India that is land under tea cultivation does not exceed 75 bighas (10.12 hectare). The study highlights that organic tea cultivation on small holding is now an emerging sector and it opens a new horizon in the organic tea cultivation of Assam. It has bought remarkable changes in the socio economic status of the growers itself as well as the rural economy of Assam. Key Words: organic, Cultivation, Potential etc. INTRODUCTION Tea is considered as a true stimulant which satisfies the palate demand of human beings for centuries. Tea is one of the oldest and well organized industries in India and it plays an important role in the national economy. India is the second largest producer of tea (1116 mkg) in the world after China. It is the 4 th largest tea exporter in world, contributing nearly 12 percent of the global tea export. The export earnings from tea increased from Rs crore (1955) to Rs crore in the year It was estimated that about thousand tones of tea was exported from India which brings $ 400 million as foreign exchange for the country per year. Additionally, more than two million people derive their livelihood from ancillary activities associated with the tea industry. This industry also adds to the development of various industries like- iron, steel, cement, aluminum foils, metal fittings, paper, card boards etc. Tea has occupied an important place in the economy of Assam since its discovery. The tea industry is the backbone of the economy of Assam. It provides employment to a large number of people, contributes substantially to the revenue of the state government. It also helps in the development of ancillary industries of the state. It is one of the oldest organized sectors with a large network of producer, manufacturer, retailers, distributors, exporters. Organic farming is a 'back to nature' approach based on specified traditional farming philosophy. It is independent of conventional agriculture and independent of chemicals and fertilizers. The demand of organically grown food is increasing worldwide and the concept of organic farming is gaining ground. India has converted and declared one state namely Sikkim as Organic State, and whatever crops grown there, including tea, are organic, and an area of hectares of agricultural land have been certified as organic. The State Governments of Nagaland and Mizoram declared their intention to go 100 percent organic in due course. In Assam, organic tea cultivation is gaining momentum where many gardens have converted to organic practices. The organic tea is a value-added product. In addition, organically produced teas have longer shelf-life and better keeping quality than conventionally grown teas. Health has been a prime focus of the present population of the world. Hence the product free from harmful chemicals is gaining popularity in every day. Organic products are in high demand due to the absence of the harmful chemicals used in the fertilizers and pesticides. The demand for organic tea is also very high in the world. Organic tea named Phalap produced by the local tribe of Assam called Singpo, is in high demand in the market of Canada. UK and USA also have tested the tea and placed demand for the same (The Assam Tribune, 2009). The organic tea produced in Meenmohan Chah Bagisha in the Lakhimpur district of Assam has also gained popularity among the tea consumers of Canada. The tea has been marketed in Canada by the name of Madhupur Village Tea marketed by an NGO named The Small Tea Co-operative (Akhomiya Pratidin, 2010) Similar effort has been made by Abali Organic Tea Estate of Arunachal Pradesh which has been able to attract European buyers for its quality. 96

2 STATEMENT OF THE PROBLEM Tea is one of the major exportable cash crops and habitual consuming crop by every person throughout the kingdom. It plays a significant role in the economic life and sustainable development process of Assam. There is high demand of organic tea in Internal and external market. The potentiality of organic tea is high. The social economic condition is suitable for cultivation of organic tea in different areas of Assam. The cultivation area covered by organic tea is very small. Organic tea farming may be significant source of cash earning in Assam. Organic tea in Assam is not much successful and is not able to meet the Internal and external demand. This study looks in to different aspects of economics and applicability of organic tea cultivation in Golaghat district of Assam.. Organic tea agriculture sustains the health of soils, ecosystems and people. It relies on ecological processes, biodiversity and cycles adapted to local conditions, rather than the use of inputs with adverse effects. Organic tea agriculture combines tradition, innovation and science to benefit the shared environment and promote fair relationships and a good quality of life for all involved. Organic tea farming practices don t rely on synthetic pesticides and fertilizers to maintain a high yield. Organic tea farming relies heavily on the natural breakdown of organic matter, using techniques like green manure and composting, to replace nutrients taken from the soil by previous crops. Objective of organic tea cultivation is to have an ecologically sustainable plantation, aimed at the conservation of ecology and natural habit without polluting soil, air and water and yet maintaining sustainable tea production. Organic tea is produced using environmentally-friendly methods of cultivation. Instead of relying on chemicals that damage the environment and can remain behind on the finished product, organic tea farmers use traditional, natural methods of pest and weed control. It is worth mentioning that many small tea growers across Assam have also gone the organic way since the last decade or so. The electronic media, print media and general talk amongst the health conscious section of the society made them realize that organic tea not only benefits the health of the tea drinkers, but can also preserve the productivity of land as well as bring some good business opportunities to the rural farmers. So, many small tea growers in Assam as well as the neighboring North East Indian states have started cultivating tea in the natural way without the use of any chemicals. SMALL TEA GROWERS OF ASSAM The advent of a large number of Small Tea Growers in recent years is a significant development in the tea industry and socio-economic sphere of Assam. As per the records available, the first commercial small tea garden was established in Golaghat District in Tea cultivation in small holdings is providing employment to large number of unemployed youths, generating additional earning of farmers, contributing large quantities to the state s to the total production and thereby, helping the state s economy. In Assam, the first effort to popularize tea cultivation on smallholding in Assam was made the then Agriculture Minister of Assam in The abundance of uplands, suitable climate, skilled surplus labours from nearby big tea estates, ready market, were the factors that encouraged the small and marginal farmers to take up tea plantation. In recent year s tea industry of India is struggling with multiple problems like- increase competition in the global market, imbalance in demand and supply, ageing of tea bushes, poor maintenance, quality degradation, lack of investment, high cost of production, scarcity of labours and mismanagement in the garden, etc. According to All Assam Small Tea Growers Association (AASTGA), there are 1, 18,832 STGs spread across the state and their cultivation area is estimated at 2.5 lakh hectares. These small tea growers produced 8820,594,234 Kgs. green leaf during the year In 2014, STGs provided 170 million kg. made tea, contributing 33 percent to the total production of the state and 28 percent of the area. A special scheme for the benefits of STGs in the 12 th plan amounting Rs. 200 crore was sanctioned. The small tea growers in Assam are now an economic force for the state. Most of the small tea gardens in the state are confined to Upper Assam. Tinsukia accounts for 22 percent of the total tea gardens followed by Dibrugarh 20 percent, Golaghat 14 percent, Sivasagarh 13 percent, Jorhat 10 percent, Sonitpur 9 percent and other districts contain 12 percent. According to the Chairman of Assam Bought Leaf Tea Manufacturers Association (ABLTMA), the Small Tea Growers contributed more than 41 percent of the annual crop of Assam and Bought Leaf factories contributed nearly 30 percent of Assam s annual production of approximately 600 million kg. during 2014 (The Assam Tribune 10 th Nov. 2015). The summary of Small Tea Growers of Assam, is presented in Table 1.1 Table 1.1: Summary of Small Tea Growers of Assam ( ) Sl No. District No. of Growers Planted area (bighas) Green leaf Production (Kg.) Labours (No.s) 1 Tinsukia 25, , ,954,140 60,750 2 Dibrugarh 24,906 95, ,028,946 46,298 3 Golaghat 16,492 75, ,702, ,722 4 Sivsagar 15,812 71, ,756,611 32,633 5 Jorhat 11,702 40,573 64,403,676 18,283 6 Sonitpur 10,927 43,368 77,758,824 22,124 7 Karbi Anglong 3,203 15,960 10,189,300 6,825 8 Udalguri 2,242 10,920 9,210,540 4,455 9 Lakhimpur 2,207 10,178 8,596, Kokorajahar 1,756 11,610 9,793,650 4, Nagaon 1,321 11,282 8,748,

3 12 Bongaigaon ,998,800 2, Cachar 671 3,402 2,345,320 1, Dhemaji 527 2,966 2,184,400 1, Baksa ,053,000 1, Goalpara 256 1,479 1,055, Dhuburi , Morigaon , Sirang , Darrang , Karimganj , Dima Haso , Kamrup (Rural) , Karup (Metropolitan) Nil Nalbari Nil.. 26 Hailakandi , Barpeta , Total 1,18,832 5,25, ,594,234 2,46,298 Source: All Assam Small Tea Growers Association (AASTGA) Approved on , State Executive Meeting of AASTGA. (A.A.U, Jorhat) REVIEW OF LITERATURE An attempt has been made to present the literature pertaining to the past research work related to the present study. At present tea cultivation on smallholding is gaining prominence in tea plantation industry of Assam. A brief review of literature related to the study is given below. Barkakoty, B. (2014) in a workshop organized by the North Eastern Tea Association (NETA) in association with Parcon (India) Private Limited and supported by the Tea board of India (TBI) on green tea held in Golaghat has emphasized the need to create awareness about green tea. He said that small tea growers in Assam and other Northeastern states have started making organic handmade green tea. The demand for green tea in domestic market is growing at 17 per annum as against only 3% for black tea. Hanan, A. (2013) in his paper identifies the gap in the existing policies for the small tea growers in India. He observes that small tea growers are unorganized and operate fragmented land holdings. Role of various agencies like- small holders association, tea self help group, bought leaf factories, etc. are also discussed in the paper. The paper highlights various challenges of small tea growers and found lack of co-ordination, collective action are the important factors for the slow grow of the small tea sector in India. Goswami, D. J (2013) in his article, use of Chemical fertilizers and pesticides in the small tea gardens of Assam and its effects on environment pointed out that to save the earth and to save human life we are gradually convert the tea cultivation process to organic one which have a good international market and to maintain eco-friendly environment for sustainable development. Organic tea cultivation have many benefits such as it improves the soil texture, increase the humas content in the soil, increase in water retention capacity of the soil, reduce soil erosion, improves fertility, reduction in water and environmental pollution, safe for animals and human being etc. Das, K. (2013) in his paper discusses the influence of infrastructure in the performance of small tea sector in Assam. Bought leaf factories of Assam have created a convenient place for the small tea growers to sell their produce. The small tea growers of Assam has not their own factories and have to depend on bought leaf factories and big garden factories. Sometimes these factories fix the limit of the supply of the tea leaves produce by the smallholders; hence a proportion of green leaf remained unplucked. He recommends that adequate provisioning of public infrastructure help to reduce the cost of production and thus raise the competiveness and inclusiveness of a production sector. Bora, L. (2012) in his paper explains the emerging importance of small tea cultivation by considering it as a bonus for Indian tea industry. He has cited various advantages like- low cost of production, unorganized nature, etc. It is an emerging sector in India as the tea estates sector is facing many challenges like- low productivity, high labour cost, etc. Boruah, S. (2012) in his paper focuses on the importance of tea cultivation on small holding in Assam. Small tea cultivation provides not only high profit but also assures a steady income almost for the whole year as remuneration to the planter. Study reveals that small tea farming has played a vital role in strengthening the rural economy through assured self employment and opportunity to a large number of unemployed persons in the rural areas. Saikia, A. (2011) in his paper emphasizes the need of entrepreneurship in NER as the economic activities of the region were less than the other parts of the country. He identifies the cultivation of tea on small holding as one of the most convenient sectors for the development of the entrepreneurship culture among the rural people. He focuses the scope of organic tea which would be able to create multiple positive effects in the entrepreneurship development in the north Eastern Region of India through employment and income generation. 98

4 Dutta, A. (2010) has emphasized on the empowerment of small tea growers. According to him empowerment of small tea growers can be possible through the formation of growers association and self Help Group which will help the growers to get fair price with strong bargaining power. Singh, S. (2009) in his paper explains the enormous opportunities of tea cultivation on small holding and their threats. Opting cultivation of tea on smallholding for livelihood by the local farmers is a welcoming feature of rural Assam. His study area covers the small tea growers of Sonitpur district of Assam. He has found that requirement of land right, financial assistance, lack of awareness in various aspects like subsidy scheme, importance of registration with Tea board of India are the major barrier for the growth of this industry. Mwaura and Muku (2007) have discussed the contribution of tea farming enterprises to the well being of the small holders tea farmers in Kennya. They find small tea farming a major enterprise and a core source of income to the resident which is most profitable among tea growers of Kenya. Their study finds that tea is a major exporting cash crop which holds the potentiality to improve the living standard of small holders tea farmers in Kennya. Palanithurai, G. (2006) recognizes small tea growers as one of the important player in tea industry of our country. He has given more emphasis on the marketing of tea especially small tea growers. He also discusses the crisis prevailing in the south Indian tea producing states, steps initiated by the Tea Board of India, impact of liberalization and globalization policy of the Indian tea sector. Bordoloi, S. (2006) in his study highlights the commercial aspect of tea cultivation of tea in Assam. He recommends that small tea growers may start tea cultivation by forming co-operative societies among themselves. Formation of society or group will help them to increase the bargaining power and the quality of green leaves. Taporia, M. (2003) has explained the characteristics of small tea growers in Assam. He also highlights the scope for entrepreneurship through the cultivation of tea on small holding in Assam. To him the emergence of small tea growers in the agrarian scene has created a new era of agricultural revolution in Assam. He identifies tea growing in any scale either big or small was an enterprise as it includes all elements of an enterprise like- land, labour, capital and organization. He divides the small tea growers into five distinctive categories namely- sedentary cultivators, educated youth, educated youth from urban, in service personals and ex-tea garden workers, etc. Deka, A. (2001) in his study analyses the influence of small tea cultivation in socio-economic life of the rural people of Assam. He signifies the role of small tea cultivation in up-liftment of the economic status of the tea farmers. He also states that small tea cultivation has played an important role in increasing the production of the state. Saikia, T. (1994) has explained the extension of small tea cultivation in Dibrugarh and Golaghat district of Assam. His study observes that cultivation of tea on smallholding is not only increases the prospects of future growth of the tea industry but also the economy of the country. He observes that most of the growers are literate and economically sound. The growers are using both own land and grazing land for tea cultivation. Baildon, S. (1882) in his book has mentioned some of the earliest myths and legends surroundings the history of tea plant. He describes that tea is indigenous to India and Assam is known to be the best climate in India. His writing deals with various issues like superiority of Indian over Chinese tea, labour issues and tea planter s life during the initial years of tea plantation in jungle of Assam, etc. OBJECTIVES OF THE STUDY The objectives of the study are as under: 1. To analyze the potential factors behind the emergence of Small Tea Growers (STGs) in organic tea cultivation. 2. To identify the challenges and opportunities of organic tea cultivations of STGs in the study area. DATA SOURCE AND METHODOLOGY The proposed study is conducted in Golaghat district of Assam during The study is exploratory in nature. It is based on both primary and secondary data. Primary data are collected from different constituents of cultivation of tea like Small Tea Growers (STGs), members of growers Association, representatives of Bought Leaf factories (BLFs), through interview schedule in the form of questionnaire. The study considers small tea growers who cultivate tea on smallholding. Secondary data are collected from various published and unpublished documents which include books, news paper and research articles, publication from growers association, Government Reports etc. web sites and internet sources are also considered for collecting information and data for the study. Keeping in view of the objectives of the study a convenient sampling is adopted for the selection of the district, number of tea clusters, number of Small Tea Growers, etc. The Golaghat district is selected due to the presence of highest number of (30 percent) registered STGs in Assam. Besides this area has potential for organic tea cultivation as per the topography, availability of land and labour, other technical supports etc. Small Tea Growers are selected out of the total eight tea clusters from Golaghat district of Assam. They are namely Morongi, Golaghat Central, Golaghat East, Golaghat South, Golaghat West, Golaghat North, Gomariguri and Kakodonga. It is observed from the field survey that the highest numbers of STGs are concentrated in three tea clusters they are namely Morongi, Golaghat Central and Golaghat East. So these three tea clusters are selected for collecting required information for the study. Sixty STGs are selected from each chosen tea clusters. Thus, a total of 180 Small Tea Growers are selected for collecting the required information from each chosen tea clusters in the study area. 99

5 ANALYSIS AND DISCUSSION: Potential factors behind the rapid growth of STGs in the Study area. So far data have been collected from 180 small tea growers of Golaghat district and on the basis of these data, the potential factors are as follows. Table 1.2 Potential factors behind the emergence of STGs in organic tea cultivation Partially Fully Not at all Potential Factors No Percent No Percent No Percent Low Cost Resources Availability of Raw Materials Availability of Labour Transport Facilities Eagerness to make money Gain social prestige Availability of own land High profitability Capital in hand Healthy and Environment Friendly Self employment High Price Source: Field Survey It is evident from the above table that high price of organic tea product is the potential factor for the emergence of STGs in the study area. About percent STGs are fully agreed that they have chosen organic tea cultivation on small holding due to high price of organic tea product in domestic and international market. They adopted tea cultivation with an objective to augment their income. Of course 9.44 percent STGs are partially agreed with this view. High profitability in the cultivation of organic tea (80.56 percent) is found as the second potential factor behind the emergence of STGs in the study area. The proportion of own land was found to be highest compared to government land, grazing land. After this factor, healthy and environment friendly aspect of organic tea has been found as a potential factor for the emergence of STGs in the study area because percent STGs have chosen organic tea cultivation on small holding due to healthy and environment friendly aspect of organic tea. Besides the above mentioned factors, growing monkey s damage of the agricultural food crops in the study area is one of the potential factors for the expansion of small tea plantations, as cited by a few 46 STGs (25.56 percent). According to them because of the menace created by the monkeys it is impossible for growing vegetables, sugarcane etc on commercial basis. This is precisely the reason that, many STGs in the study area now even stopped growing the seasonal vegetables. Replacement or change in land use to tea thus became a viable alternative for their livelihood. This problem has been more acute in Golaghat East tea clusters of the study area. Of course field survey conducted in the study area revealed that almost all the tea growers (having agricultural land up to 10 hectares) not only cultivate organic tea but also go in for non-tea crops that are paddy and potatoes so as to ensure day-to-day food requirements. Challenges faced by the STGs in case of f Organic tea cultivation The STGs are asked about the challenges of organic tea cultivation. The data presented in the table (Table 1.3) shows that in total 42.77% are of the view that the 'high cost of production', 40.1% farmers says that 'lack of market', 46.9% says the 'low production', 11.2% says the 'less selling', 23.2% says the 'lack of labour for farming', 24% says the 'transportation and storage problem' and 44.1% says that organic certification and networking with international market. 100

6 Table 1.3: Challenges faced by the STGs in Organic tea cultivation Problems of organic Tea farming faced Response No. Percent High cost % Lack of market % Low production % Less selling % Lack of labour for farming % Source: Field Survey Transportation and storage problem Others (certification, international market) % % From the discussion with the STGs, it is found that certification of organic tea products are important to ensure the quality of organic tea product for consumers. Consumers ask about the logo or trademark which can signify the quality of product. When STGs are asked about the process of organic certification, only 3.88% said that it is easy to get certification whereas 45.56% says that it is difficult followed by 50.56% STGs has no knowledge of process of certification. Table 1.4: Access of Certification of Organic farming Access of Certification of Organic farming Easy % Process of certification Difficulty % Do not Know % Total Source: Field Survey The data shows that more than 50% farmers are found unknown about the process of organic certification who are doing the organic farming. It is recommended to concerned Government and non-government organizations to disseminate the depth knowledge of organic tea farming including the process of organic certification and its relative advantage for farmers. Potential international market of organic tea product As the experience shared by the farmers that the marketing of organic products are limited within the niche market which needs to go in international main stream market so that the general people have easy access on product. The selling of product will be high when the products will be easily available and accessible for the general consumers also. This is the responsibilities of policy makers to develop the international network of organic tea products for the promotion of products in global market. The data presented in the Table 27 shows that 11.67% farmers says that there is very potential to access the international market of organic tea products followed by 49.44% says that it is potential whereas % says that there is no potential access on international market. Table 1.4: Potential International market of Organic Product No. Percentage Very Potential % Potential international market of organic product Potential % No Potential % Total Source: Field Survey 101

7 Opportunities of the STGs in case of Organic tea cultivation Tea cultivation in small holdings by the STGs of Assam would be able to bring remarkable changes in the rural socio- economic scenario of Assam. Apart from generating self-employment opportunities like- leaf agents, supplier of organic fertilizers, garden equipment, etc. the cultivation of organic tea has opened many business opportunities and encourages entrepreneurship culture, which provide not only the direct and indirect employment to many as staff, sub-staff and labour but also creates a sound base for firm income. In fact since the inception of tea cultivation on small holding has given birth to a new class of entrepreneurs that is tea entrepreneurs. Development of entrepreneurship among the small tea growers can lead to rapid economic growth of the state as well as country. Formation of self help group or co-operative societies to move jointly and establishing tea processing units with the help of Tea Board and Government will help small growers to overcome many problems relating to middleman, exploitation of big tea estate, proper price organic tea, quality improvement etc. Again, there is a good potential of production of organic tea from existing small tea growers with adaptation of proper technical knowhow. An increasing demand is seen for the organic green tea production in recent years. The demand for green tea in domestic market is growing at 17 percent per annum. A good numbers of STGs from Assam in general and Golaghat district in particular have started making organic handmade green tea. These tea growers are working very hard to develop their knowledge and practice of organic cultivation. They would become the leaders in agriculture and create a healthier environment for Assam and a healthier tea for the world. Our educated and young cultivator should come forward in this regard and encourage to other cultivator for organic plantation which will give them more profitability and sustainability in the long run. Mere making organic tea without a scientific database of soil (which is the backbone of any crop) is not going to help our farmers. In the 12 th plan, a special scheme for organic tea cultivation provides 25 percent more subsidy over and above the conventional cultivation for organic tea. The demand for organic tea has been increasing gradually in the global market and our STGs can tap a sizeable share in the global market by way of improving their quality. In this context, Tea Board of India has to play a major role by educating our small farmers with latest technological support. The quality and quantity of organic tea of small tea growers can be improved with adoption of appropriate management and technical training. In this regard they can approach the Dept. of Tea Husbandry & Technology, Assam Agriculture University and Tea Research Association, Tocklai, Jorhat, Assam. Post harvest management and market linkage of the small tea growers for both domestic and export market are yet to be explored. Small tea growers need to develop its own BRAND and LOGO for organic tea to establish its own identity in domestic as well as in global market. Small tea gardens in rural area of Assam can become a place of tourism. There is a huge prospect for tea based eco-tourism, tea festival in traditional life style, international level tea fair, etc. Organic tea is a health drink and has got exceptional medicinal properties as anti-oxidant. It is also helpful for preventing and controlling diabetes, hypertension, obesity, cancer, stress, mentally vigour, brightening skin, anti-aging effect etc. Drinking organic tea regularly for years may produce stronger bones. A recent study published in the journal Circulation found that drinking more than two cups of tea a day decreased the risk of death following a heart attack by 44 percent. Aggressive campaigning to promote organic tea as a health drink will increase its demand which is good for whole tea industry and small tea growers. Conclusion: From the above analysis it can be concluded that small tea growers have now become a new economic force of Assam by generating employment, income and revenue of the state. In fact STGs have opened a new horizon in tea plantation industry of Assam. Now small and marginal farmers have taken up organic tea cultivation as a primary occupation. Organic tea cultivation on small holding has able to give them a regular and sustainable source income. Rural STGs take organic tea cultivation as an alternative source of income for their livelihood. However growth of organic tea cultivation on small holding could present sustainability challenges because of its unregulated nature, farming practice may be less up to the international standard. 102

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