Tea industry eyes alternative cropping as a new business model. Jatropha cultivation is one of the top choices

Fuel of the future: Jatropha saplings planted on barren lands in Chhattisgarh to produce bio-diesel.

The tea industry is increasingly looking at options of alternative cropping as a means to derisking its business.
While the cyclical and somewhat uncertain nature of tea plantation has made many companies exit the business altogether, others are looking at taking alternative crops as business models that can allow companies to achieve sustainable competitiveness while allowing tea garden workers also to have a sustainable livelihood.

Although these are early days as yet but a definite trend is now emerging whereby tea majors are exploring their options on alternative crops on surplus tea land either through their existing companies or by disbanding their entire set- up and forming subsidiary companies which would take up the new ventures.

The Indian Tea Association (ITA), the apex body of the North Indian plantations which account for 80 per cent of the country’s production too feels that as a long term measure, efforts should be made to identify surplus/ marginal lands within tea estates for planting alternative crops with commercial potential in case tea yields were not economical on these patches.

New effort

The tea industry’s eagerness to look for alternative avenues is but natural. The Indian tea industry had been passing through a long dark tunnel from which it emerged only in 2006. The problems started with low price realisation since 1999.

While production continued its upward movement, prices went through a free-fall from Rs. 76.40 in 1998 to Rs. 58.06 a kg in 2005. In 2006, prices increased to Rs. 66.09 a kg. In the global arena though, India retained its dubious distinction as the world’s highest cost producer and conceded substantial market share to rivals like Sri Lanka and Kenya.

Tea companies have appealed time and again for a review of the Plantation Labour Act which guarantees a host of social benefits to the tea labourer but puts the industry at a distinct disadvantage vis-a-vis their global competitors.

However, this is yet to happen and many gardens, especially those run by the smaller companies, have closed down, although alongside poor productivity mismanagement of funds was among the main reasons. As of now 33 gardens are lying closed in West Bengal, Kerala and Assam. However, now the Union Commerce Ministry is spearheading a new effort to reopen these gardens, most of which lie in Kerala and West Bengal.

The advantages of utilising surplus tea land for multi-cropping are many.

Advantages

The tea industry is billed as one of the largest owners of contiguous fertliose stretches of land. In these days having possession of land holds special value and large tracts make it easier to harness available farm technologies. Its labourforce whose productivity often becomes an issue, can also be better utilised just as land utilisation improves through alternative cropping. But there are some pitfalls which have to be guarded against.

Basic issues

These include basic issues such as changing mindsets at various levels beginning from the estate managers so that a half-hearted effort is not made. The marketability of many crops will be enhanced only when some value addition is done. This will have to be kept in mind.

However, some legal hurdles have to be crossed by companies seeking crop diversification. In Assam and West Bengal, the lands have been given by the respective State governments for growing teas only. Even if executive nod is given for changing this norm so as to enable crop diversification legislative changes would be necessary for making this activity possible in the case of States like West Bengal where land ceiling law also acts as a hindrance.


The National University of Juridical Sciences had done a project to examine the current laws and regulations governing the land occupation by tea estates in Assam, West Bengal and Tripura and to suggest changes. The study noted that West Bengal would need at least two amendments to finally make this possible. So, what are the crops that are suitable for cultivating on tea lands? Jatropha is said to be one of the top choices and Willaimson Magor & Co and D1 Oil of the U.K. have already formed a joint venture to develop jatropha plantations.


Source: www.thehindu.com