The draft Bill that seeks to replace the age-old Tea Act of 1953 seems to be more of a “Vision Document” and the actual impact of the same could be clear only when the actual rules governing the industry are laid out in details, according to industry.

Under the draft Bill, the role of Tea Board will move from being a licensor to a facilitator. Some of the punitive sections of the Tea Act are also being replaced, notably section 16, which had empowered the Tea Board to take over any garden if the management was not up to the mark. Setting up a tea factory, manufacturing and purchasing tea would no longer require a licence from the Board, instead, they would require only a registration from the respective state government.

According to PK Bezboruah, Chairman, Tea Board of India, it would not be right for the Board to abdicate its role as a “quality watchdog”.

“The registration for setting up a factory or manufacturing can be done by the State government but it would be better for Tea Board to have the authority to close down gardens and cancel registrations if there are quality issues. The monitoring of gardens should ideally remain with Tea Board as no other agency may have that kind of expertise,” Bezboruah told BusinessLine.

The Assam Chah Mazdoor Sangha (ACMS), which is the largest union of tea garden workers affiliated to Indian National Trade Union Congress, has also raised concern over the proposed draft Bill. In the earlier regime, Tea Board would take over gardens which were poorly managed, but as per the draft, it may no longer play that role. This could put the tea garden workers interest at jeopardy.

While the draft Bill elaborately discusses the role of Tea Board in promotion and development of the industry, however, there is not much mention of its role in ensuring quality, said PK Bhattacharjee, secretary general of the Tea Association of India.

It is to be noted that quality of tea plays a very important role in ensuring good prices. This is particularly critical at a time when the industry has been reeling under the pressure of high input cost outstripping realisation.

Key highlights

One of the key things highlighted in the draft is that the Tea Board should encourage fair and remunerative price for growers. However, the Confederation of Indian Small Tea Growers’ Association feels that instead of fair and remunerative price for growers it should be said “ensuring fair and remunerative price of green tea leaf, for small/big tea growers and made tea for manufacturers.”

It is also of the view that growers’ category should be split into three – Estate Grower, Big Grower and Small Grower – while the manufacturing part should be split into four categories – Estate, Cooperative/SHG/FPC, Bought leaf and mini tea factory.

The Tea Board has extended the timeline for submission of suggestions and feedback from stakeholders till February 9, as against the earlier January 21.