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Calcutta, Feb. 22: The Bengal government has initiated steps to check expansion of tea areas following a representation by the Consultative Committee of Planters’ Association (CCPA) to prevent oversupply in the sector.

Indian Tea Association chairman C. K. Dhanuka said, “Due to a critical oversupply situation plaguing the industry for the last couple of years, the association had approached the state governments of Assam and Bengal to put a stop to further expansion of tea areas. The Bengal government has already initiated steps in this direction.”

“The CCPA has also taken up the matter with the Small Growers’ Association and the Assam government to consider this issue keeping in mind interests of the industry at large and the workers it employs,” said Dhanuka.

Global tea production in 2003 recorded an increase of approximately 43 million kg over 2002, India alone contributing an increase of 32 million kg.

In the organised sector, there are 343 gardens in the state covering a total planted area of 1,03,950 hectares. Till date, there has been no data on the growth of tea plantations in the small growers segment.

Dhanuka said there was a need for reforms in the existing labour laws. In the absence of flexibility to initiate structural adjustments, tea units are becoming unviable leading to closures like those in several other industries.

“These processes are not new. Consider the textile industry. It is estimated that around 2.42 lakh workers became unemployed in 1983-84 as a result of closures and retrenchment. The tea industry has been making repeated pleas to the government and the unions for a re-look at the 1969 agreement on mandatory labour strength. But very little has happened,” he added.

The rate of wage increases over the years has been exceeding that of inflation and tea prices.

In 1993-2002, while wages increased 141 per cent, the corresponding rise in the all-India consumer price index (AICPI) has been only 89 per cent. To sustain the current level of wages the industry has to have a higher level of productivity.

Dhanuka said tea prices remained depressed in most of the months in 2003. But 2004 has started on a firm note. “There appears to be no backlog in the pipeline, which augur well for the coming season, despite higher offerings arising from production increase and reduced exports,” he said.