Assam’s tea industry at a crossroads: Why wages deserve centre stage

Few industries define a region as deeply as tea defines Assam. Beyond its global reputation for strong, malty brews, the sector remains central to both India’s economy and the state’s social fabric.

Assam contributes over half of India’s tea production and supports the livelihoods of nearly 6.84 lakh workers. These numbers reflect not just economic weight, but a deeply embedded social system built around tea.

As Assam approaches another election cycle, the conversation around tea is widening. While productivity, exports, and climate risks dominate policy discourse, a more fundamental question demands attention: are the gains of this globally recognised industry translating into improved and dignified wages for its workers?

An Industry Under Pressure

The tea sector today operates in a rapidly shifting landscape. Climate change has emerged as a critical concern, with erratic rainfall, rising temperatures, and pest incidence affecting yields and quality.

At the same time, tightening pesticide regulations and evolving global standards are placing additional demands on producers.

Market realities add another layer of complexity. Auction prices and export returns often struggle to keep pace with rising input costs. While premium teas occasionally fetch extraordinary prices, these remain exceptions rather than the norm. For many producers—particularly smaller estates—profitability remains uneven.

Yet, the sector is not without support. Policy measures such as GST rationalisation and export incentives, along with rising exports, signal continued government backing and global demand. It is within this mix of pressure and opportunity that the question of wages becomes critical.

The Wage Story: Movement Without a Framework

Wages in Assam’s tea sector have seen a gradual increase over time, largely through periodic revisions rather than long-term settlements.

The trajectory reflects steady movement—from an interim hike in 2018 that raised wages to ₹137 per day, to ₹205 in 2021, followed by ₹232 in the Brahmaputra Valley and ₹210 in the Barak Valley in 2022.

This increased further to ₹250 and ₹228, respectively, in 2023, and most recently, a further ₹30 increase will raise wages to ₹280 in the Brahmaputra Valley and ₹258 in the Barak Valley from April 1, 2026.

The most recent ₹30 increase, effective April 2026, was not an ad hoc decision. It emerged through deliberations within the state’s wage-setting architecture, involving tripartite consultations and the Minimum Wage Advisory process.

Yet, while institutionally anchored, these revisions remain interim in nature. They are not linked to a structured, multi-year framework or a clearly defined formula based on inflation or the cost of living.

This becomes particularly evident when viewed in comparison with other tea-producing states. In Tamil Nadu, daily wages are in the range of ₹475, while in Kerala they are approximately ₹546 (w.e.f. April 1).

While wage levels are shaped by regional contexts, cost structures, and local economic conditions, Assam’s wages—₹280 and ₹258—remain significantly lower even within this broader variation. Within the state itself, the notified wage for unskilled labour is around ₹345 per day, further highlighting the gap.

Taken together, this suggests that while wages in Assam have moved upward, they have not kept pace with either broader benchmarks or rising expectations.

When Wages Are Not What Workers Earn

The notified wage does not always translate into actual earnings. Plantation practices such as the tikka system introduce variability, with workers expected to pluck around 24 kilograms of tea leaves during peak harvest periods.

Falling short of this target can lead to deductions, making take-home earnings uncertain and, at times, lower than the stated wage.

At the same time, during peak plucking periods, workers may receive additional incentives.

These can include attendance-based payments—linked to the number of days worked within a fortnight—as well as plucking incentives and food subsidies based on the number of dependents, all of which add to gross earnings.

However, even when these components are accounted for, earnings remain variable and contingent on multiple factors, including workload, attendance, and household composition.

This makes incomes less predictable and, in many cases, still insufficient to meet rising living costs—reinforcing the gap between nominal wages, actual earnings, and broader expectations of a higher wage.

Rising Expectations, Evolving Demands

Recent mobilisations across tea gardens reflect a clear shift in worker expectations. A daily wage of ₹351 has emerged as a widely accepted benchmark—no longer just a political promise, but a symbol of minimum dignity.

Beyond this, some groups are demanding ₹400 to ₹550 per day, reflecting rising living costs, comparisons with higher wages in southern states, and frustration with incremental increases that struggle to keep pace with inflation.

There is also growing dissatisfaction with the nature of wage revisions. While recent increases have been institutionally determined, they are often perceived as insufficient.

Workers are calling for more timely and structured wage agreements, and increasingly framing their demands in terms of a living wage—one that ensures dignity, security, and the ability to meet essential needs.

Importantly, these demands are intertwined with broader socio-economic aspirations, including land rights, Scheduled Tribe status, and stronger social security provisions. Wages, in this sense, are part of a larger question of equity.

Beyond Cash Wages: The PLA Reality

Industry stakeholders often emphasise that wages cannot be viewed in isolation. Under the Plantation Labour Act (PLA), estates provide housing, rations, healthcare, and other benefits. When these are accounted for, total compensation is argued to be significantly higher.

These provisions remain important. However, economic realities have changed. Workers today face increasing cash expenses—whether for education, healthcare beyond estate facilities, or daily mobility. Variations in the quality and accessibility of services further complicate this equation.

The issue, therefore, is not whether in-kind benefits matter, but whether they can substitute for adequate cash income in a changing economy.

A Fragmented Wage-Setting System

Wage determination in Assam’s tea sector operates through three overlapping mechanisms: the industry-led CCPA framework, government-led tripartite consultations, and the statutory Minimum Wage Advisory Board.

Each has its role. The Consultative Committee of Plantation Associations (CCPA) reflects negotiated agreements between employers and unions. Tripartite processes bring the state into mediation, particularly during periods of heightened mobilisation.

The Minimum Wage Advisory Board provides a formal, statutory basis for wage recommendations.

In practice, however, these mechanisms intersect without clear alignment. The result is a hybrid system—structured, yet fragmented—where authority is diffused, and outcomes tend to be incremental rather than transformative.

Towards Clarity, Coherence, and Fair Wages

Strengthening wage outcomes will require more than periodic increases. It calls for greater clarity in the roles of different wage-setting mechanisms, stronger alignment between them, and a shift towards evidence-based, statutory principles.

There is also a need to institutionalise more regular and transparent processes, improve worker representation, and rethink the balance between cash wages and in-kind benefits in light of changing economic realities.

Moving beyond incrementalism towards a medium-term wage roadmap—grounded in cost-of-living realities and aligned with both worker dignity and industry sustainability—could bring greater predictability and trust into the system.

A Sector Sustained, A Wage at a Crossroads

The question of wages for Assam’s tea workers stands at a critical crossroads.

The industry itself is under strain. Small tea growers are demanding better prices, supply chains remain fragile, and long-standing socio-political demands—such as Scheduled Tribe status—continue to shape the landscape. These pressures ripple across the value chain.

Producers point to rising costs and statutory obligations. Buyers resist higher prices in a competitive global market. Between them, wages remain caught—and continue to lag behind other tea-producing states, at ₹280 and ₹258 in Assam, compared to around ₹475 in Tamil Nadu and ₹546 in Kerala.

Overlaying this is a fragmented institutional system, where multiple wage-setting mechanisms operate without clear alignment. Revisions do happen, but largely as incremental responses, not structural shifts.

In this churn, the worker’s voice risks being diffused—even as the aspiration remains clear: dignity, stability, and a fair share in the value chain.

The paradox is stark: a globally celebrated industry sustained by workers whose wages remain uncertain.

At this crossroads, Assam must decide whether to move towards a coherent, worker-centred wage framework or continue managing the problem in increments.

Also Read: Beyond rhetoric: Why Assam’s voters must read manifestos before voting