Building partnerships to support Small Tea Growers close living income gap in India

Over the last 40 years, the Small Tea Growers (STGs) have grown exponentially in Assam. Until 2022, there were over 120,000 STGs in Assam cultivating approximately 110,000 hectares of land - with a combined production of approx. 350 million kgs or 50% of total tea produced in Assam.

Despite the massive growth, the reality of a typical STG is not as sanguine. According to official estimates, over 85% of STGs cultivate less than 1 hectare of land. This limited landholding makes it challenging for them to generate sufficient income from tea alone. As a result, many households are forced to rely on daily wages and other enterprises to increase their living income.

Shyamal Moran (45) is a STG from Talap region in Tinsukia district of Assam. Moran has a 6 bigha small tea garden and he now produces around 3000 kgs of green leaf. He is worried about constantly declining production since 1997, when he had first planted tea.

"Production is declining annually, which is a cause of concern," he remarks. "It is becoming increasingly challenging to support a family solely through income from tea. Climate change and other factors have significantly impacted the tea sector's sustainability."

He has two children to look after and his current income of Rs 30,000 yearly is barely enough to make ends meet. "To sustain my family, I need a minimum of Rs 1.5 lakh per year" Shyamal says.

Alison Tuty, another STG in Dibrugarh district faces a similar problem of declining production and income. My earnings have decreased and are no longer sufficient to support my family of five," he says. He also has two daughters attending college.

Due to their small landholdings, STGs cannot produce sufficient volumes to operate at scale and aggregate green leaves at farm gate level. Only a small percentage (around 5-6%) of STGs who live near Bought Leaf Factories (BLFs) can sell directly to them, the majority rely on a network of agents and middlemen, who play a crucial role in the tea value chain.

STGs also encounter other challenges, including a lack of awareness about good agricultural practices, limited marketing channels, insufficient access to technology and credit services - all of which results in low price realization and corresponding low household incomes. Going by standard approximations, an average STG household of four members in Assam would be making between a net income between Rs. 125,000 to Rs. 175,000 per year.

Why is living income important for STGs in Assam?

For STGs to become a true stakeholder in this journey, they need investments and incentives to achieve a 'living income', which is "The net annual income required for a household in a particular place to afford a decent standard of living for all members of that household". Elements of a decent standard of living include access to food, water, housing, education, healthcare, transport, clothing and other essential needs, including provision for unexpected events. Living income goes beyond poverty alleviation. It helps strengthen business performance, mitigating risks, and create a resilient supply chain.

The Small Tea Growers' Sustainability Program (STGSP), convened by IDH, was launched in 2019 to bridge the living income gap for STGs in Assam. This multi stakeholder initiative brings together STGs, BLFs, Civil Society Organizations and Government to create a shared roadmap for a sustainable tea sector.

The program aims to raise awareness about living income and foster collaborations to address the significant income gap. According to an STGSP assessment, the average STG household falls below 30% of the living income standard, with those having less than 0.5 hectares of land facing a gap of over 50%.

Jatin Bavishi, Program Manager of STGSP states, "Given the multitude of challenges faced by the STGs, it is apparent that no single driver can close the living income gap alone. Hence, there is need for a 'smart mix of strategies' that goes beyond pricing and farm behaviours for a long-lasting impact on the ground. Moreover, this smart mix of strategies must be complemented by 'multi-stakeholder action' that creates a win-win for all ecosystem players".

Tea incomes need to be complemented with alternate livelihoods sources

STGS programme empowers small tea growers to adopt sustainable farming practices. Through its partners, guides STGs to improve yields and quality, optimize cost of production and bring positive impacts on soil health and water resources.

However, it is crucial to recognise that there are limits to income generation from a fixed plot of land. To address this, STGSP supports STGs by providing alternate livelihood channels. "I joined STGSP in September 2023 and have started growing mushrooms and bhut jolokia (king chilli) as on-farm diversification. I invested Rs 5000 in growing mushrooms and have earned Rs 12500 in a steady pace", says Shyamal Moran. "STGSP has been instrumental in providing us with market support, which has been a significant help." he said.

It is important to note that the diversification strategy should complement, not replace, the focus on improving tea quality.

"I have gained valuable insights on improving tea quality through STGSP's interventions. I believe the project will help us meet our needs and achieve our goals" says Shyamal Moran. Alison Tuty on the other hand who has been growing areca nut and drumsticks said, "I am also starting with growing dragon fruit soon" he said.

It is essential to recognize the significance of sustainable tea production. The Small Tea Growers' Sustainability Program (STGSP) plays a pivotal role in empowering small tea growers (STGs) who are the backbone of the Indian tea industry to adopt sustainable practices, improve yields, and enhance quality. This not only benefits the environment but also ensures a sustainable income for STGs, which is key for the future of the industry and the economy of Assam.

The goal of living income is to ensure that STGs earn a decent standard of living, which is essential for their well-being and the sustainability of the tea industry. By supporting STGs through initiatives like STGSP, we can create a more resilient and sustainable "from field to cup" supply chain that benefits people, cultures, and the environment. By working together to ensure a sustainable income for STGs, we can ensure a bright future for the tea industry and the people who depend on it.

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