[🇧🇩] Tea Industry of Bangladesh

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Tea industry needs deep reforms

The local tea industry that is deeply rooted in history and culture of Bangladesh is currently facing significant challenges. These challenges range from mismanagement and financial irregularities to poor working conditions and economic inefficiencies. If Bangladesh wishes to maintain its position

thefinancialexpress.com.bd

Tea industry needs deep reforms
Mir Mostafizur Rahaman
Published :
Feb 04, 2025 00:14
Updated :
Feb 04, 2025 00:14

The local tea industry that is deeply rooted in history and culture of Bangladesh is currently facing significant challenges. These challenges range from mismanagement and financial irregularities to poor working conditions and economic inefficiencies. If Bangladesh wishes to maintain its position as a major global tea producer (9th largest), the government must take urgent steps to reform and modernise the sector. It is to be in the best interest of not just the industry but also the 140,000 tea garden workers and half a million members of their community.

One of the primary issues in the tea industry is the lack of transparency in management. While some tea gardens are well-run, many suffer from poor administration, financial misappropriation, and corruption. To address this, the government must conduct a comprehensive mapping of all tea gardens, identifying well-managed ones and those that need urgent intervention. This process will help create a roadmap for necessary reforms and ensure that no tea garden is beyond scrutiny. Without such accountability, the sector will continue to struggle with inefficiencies that harm both workers and producers.

While social issues remain critical, economic factors are also putting immense pressure on the tea industry. Production costs have skyrocketed due to reliance on imported machinery, fertilisers, and pesticides. Recent hikes in diesel, electricity, and gas prices have further increased operational expenses by 15-20 per cent, making it harder for producers to stay competitive.

At the same time, productivity in Bangladesh is lagging behind the neighbouring countries. While India produces around 2,137 kg of tea per hectare, Bangladesh yields only 1,270 kg. Many tea plants are old and produce less, necessitating heavy investment in replanting and expanding cultivation. Since new plants take at least 10-12 years to generate profits, long-term financial planning is crucial. Without modernisation and better agricultural practices, the industry risks falling further behind.

Tea garden workers, most of whom belong to minority communities, remain among the most marginalised groups in Bangladesh. For generations, they have been deprived of education, economic opportunities, and social mobility. Simply, offering equal opportunities is not enough; these workers require preferential treatment to overcome the barriers imposed by historical injustices. Special educational programmes, skills training, and access to healthcare must be prioritised to uplift this community. The interim government carries a moral and social responsibility to address these inequalities and integrate tea workers more into the national economy.

Tea garden workers in Bangladesh have historically been subjected to extreme exploitation, dating back to British colonial rule. Even today, their daily wages remain shockingly low. The previous government set the minimum daily wage at Tk 170 bypassing the minimum wage.

The interim government now has an opportunity to correct this mistake by establishing a fair and respectable wage structure that truly reflects the workers contributions to the industry.

Beyond wages, labour laws governing tea plantations are rife with discriminatory practices. Employers routinely violate labour regulations, and state agencies under the Ministry of Labour often fail to enforce the rules. Fresh consultations with workers, trade unions, and stakeholders can help identify further gaps and ensure that tea garden workers receive the legal protection they deserve. This is a crucial test for the government's commitment to labour rights and social justice.

Another major concern is the stagnant price of tea at auctions. Despite rising production costs, auction prices have remained nearly unchanged for a decade. Tea estate owners argue that they bear the brunt of this disparity, as they are merely growers, not traders. Only a handful of growers are involved in packaging and direct sales, leaving most at the mercy of auction houses and intermediaries.

Studies show a significant gap between auction prices and retail prices, raising questions about whether the current auction system is the right mechanism for setting prices. The government should explore alternative pricing strategies, such as direct trade models, cooperative selling platforms, or government-backed pricing regulations, to ensure fairer compensation for producers.

A less-discussed but equally serious challenge is the brain drain in the tea industry. Due to poor financial incentives and out-dated facilities, fewer qualified professionals are joining the sector. During the Pakistan era, Bangladesh produced a variety of teas, including high-value orthodox black and green teas. Today, the industry primarily focuses on lower-quality CTC teas, limiting its market potential.

Additionally, the inclusion of lower-grade tea from North Bengal in the mainstream market has further diluted prices. Other tea-producing countries have embraced tea-centered tourism as a way to boost revenue, but restrictive lease agreements in Bangladesh prevent estate owners from diversifying into tourism. The government should consider revising these policies to encourage innovation and attract fresh talent into the industry.

The tea industry in Bangladesh is at a crossroads. Years of neglect, economic mismanagement, and social injustice have left it struggling to compete globally. However, with proper reforms, this vital sector can still be revitalised. The government must take decisive action by ensuring accountability in tea garden management, establishing fair wages, addressing social exclusion, modernising production, reforming auction pricing, and attracting skilled professionals.

If these reforms are not undertaken now, Bangladesh risks losing not just its global tea market share but also the well-being of thousands of tea workers who have toiled for generations. The interim government has a historic opportunity to change the course of the industry. Whether it rises to the challenge remains to be seen.​

 

[Saif]

Tea garden workers warrant the same support as other industry labourers

Their struggles are a clarion call for a nation striving to achieve middle-income status while ensuring that nobody is left behind.

www.thedailystar.net

Tea garden workers warrant the same support as other industry labourers

In the tapestry of Bangladesh's socio-economic landscape, tea gardens and industrial parks stand as silent pillars that uphold the lives of millions, weaving together tradition and modernity. A morning that begins with a cup of tea mirrors the soul of every Bangalee heart. Alongside, the sprawling Beximco Industrial Park symbolises industrial ambition and global competitiveness. Yet, these two worlds converge in the shared plight of labourers whose sweat fuels our economy. As we savour the warmth of tea or don garments stitched with care, do we pause to acknowledge the unseen hands shaping these moments? This is not just a narrative of labour; it is the story of Bangladesh where every worker's life is intricately woven into the fabric of national progress.

While the media's spotlight shines on the recent turmoil surrounding Beximco Industrial Park, the plight of tea garden workers of the tea estates owned and operated by National Tea Company remains woefully underreported. These crises reveal deeper structural and political issues that threaten the livelihoods of thousands and ultimately, the economic resilience of Bangladesh.

The closure of the National Tea Company due to political instability exemplifies the precarious position of marginalised workers. The sudden shutdown of Madhabpur Tea Estate in Moulvibazar has left families stranded without income or alternative employment opportunities. Sanu, a worker at the estate, paints a grim picture of this reality. With five family members, including a sick mother, he struggles to provide even the most basic meals, resorting to muri (puffed rice) and cha pata bhorta (mashed tea leaves) for sustenance. Occasionally, a tourist's tip is all that stands between his family and hunger. This tragic narrative is emblematic of countless others, yet it garners little attention because tea workers lack the platforms or influence to amplify their voices.

Meanwhile the crisis at Beximco Industrial Park dominates the headlines, as workers demand their rightful wages and reinstatement. While both cases highlight the vulnerability of workers, they also expose an unequal distribution of concern and urgency. The media's focus on high-profile industrial hubs often eclipses the struggles of those in remote areas, perpetuating a cycle of neglect for sectors like the tea industry.

Both situations underscore the need for immediate and comprehensive government intervention. The current approach of relocating displaced workers to other factories or gardens is short-sighted and counterproductive. Such measures ignore the broader implications: abandoned infrastructure, loss of industry-specific expertise, and a diminishing industrial base. The parallels with the decline of Bangladesh's sugar and jute mills are stark and cautionary. These once-thriving industries now stand as relics of mismanagement and neglect, offering lessons that must not be ignored.

Bangladesh's status as a growing economy demands prudent and proactive policies to safeguard its industries. Political instability and labour exploitation cannot become recurring narratives. The government must prioritise the reopening and stabilisation of the tea estates under the National Tea Company and Beximco Industrial Park. This involves ensuring fair wages, addressing worker grievances, and fostering an environment conducive to sustainable operations.

For tea workers, the solution lies in comprehensive industry reform. The systemic exploitation that keeps wages at starvation levels must end. The government, alongside industry stakeholders, should implement wage standardisation, social security measures, and skill development programmes. For larger industrial hubs like Beximco, the focus should be on transparent conflict resolution mechanisms, timely payment of dues, and robust labour policies that prevent future disruptions.

It is time for Bangladesh to heed the silent cries of its labour force and walk resolutely towards reform and equity. The stories of Madhabpur's tea workers and Beximco's factory labourers are not isolated, and they remind us of the delicate balance between progress and humanity. Their struggles are a clarion call for a nation striving to achieve middle-income status while ensuring that nobody is left behind. Let us not allow these crises to become forgotten tragedies; instead, let them fuel a collective resolve to create a future where every sip of tea and every stitch of cloth represents not just an industry but the dignity of those who make it possible. Advocacy groups, unions, and policymakers must work together to amplify the voices of the voiceless, ensuring that every worker, regardless of their location or industry, is afforded dignity and justice.

Rafad Asgar is research associate at Bangladesh Institute of Governance and Management (BIGM).​