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[๐Ÿ‡ง๐Ÿ‡ฉ] Tea Industry of Bangladesh
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Tea workers demo for arrears

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Photo: Collected

Hundreds of tea workers took to the streets in Sylhet yesterday, demanding immediate payment of unpaid wages and rations.

Organised by the Sylhet District branch of the Bangladesh Trade Union Centre, the protest march highlighted the dire financial and humanitarian crisis faced by thousands of workers from tea estates across the region.

Abul Kalam Azad, acting president of the Sylhet District Trade Union Centre, presided over the rally.

Speakers urged the government and tea estate authorities to swiftly address the crisis and ensure the basic rights of tea workers. "Our struggle is not merely for wages; it's for survival and dignity," a labour leader declared.

The march, which began at 2:00pm from Keane Bridge premises and proceeded through Zindabazar, called for urgent government intervention to alleviate the plight of approximately 12,000 workers from 12 tea estates managed by the National Tea Company (NTC).

Workers alleged that they have been deprived of wages and rations for nearly three months, pushing their families to the brink of desperation.

Despite submitting memorandums to the government and staging a 26-day continuous strike, they claim no action has been taken, they added.

Protesters warned that over 40,000-50,000 individuals, including tea workers and their families, are now facing starvation.

"At a time when living costs are soaring, we are denied even the meager daily wage of Tk 178.50. How can we survive?" one protester questioned.

The workers demanded immediate implementation of a fair minimum wage structure for 2023-24, aligned with current market conditions, as well as regular payment of wages and rations. Other demands included full rations for families, land rights, democratic labour laws, and the resolution of disparities in casual and earned leave entitlements.

Key labour leaders, including Harinarayan Hazra, general secretary of the Moulvibazar Tea Workers Union, and other union representatives, also addressed the rally.

The protest concluded with a call for unity among workers and a pledge to continue their movement until their demands are met.​
 

National Tea out of production as workers demand arrears before joining work
Mohammad Mufazzal
Published :
Nov 25, 2024 01:06
Updated :
Nov 25, 2024 01:06

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Production at the state-run National Tea Company (NTC) has remained suspended for nearly three months as workers have abstained from work for non-payment of wages.

Wages of around four months are due as the company suffers an acute shortage of working capital. About 12,000 permanent workers now seek the intervention of the government, with their demand for the arrears.

As per the auditors' report, workers' gratuity fund had zero balance as of June 30 last year, falling short by at least Tk 306 million. That means apart from unpaid wages NTC's workers are being deprived of guaranteed retirement benefits.

"Workers are not getting retirement benefits as pension and gratuity funds have no money," said Md. Abul Hossain, a director at the NTC board, nominated by the Investment Corporation of Bangladesh (ICB).

Meanwhile, work abstention and suspension of production threaten further losses in FY25.

Already, NTC's liabilities have exceeded assets by Tk 318 million, according to the company's latest financial statements for FY23.

With persistent losses since FY20, the company's negative earnings ballooned to Tk 2.12 billion until March this year.

To help the NTC overcome the working capital shortfall, the Bangladesh Securities and Exchange Commission (BSEC) approved its proposal in April 2023 to raise Tk 2.80 billion by issuing placement shares to existing shareholders.

As per the regulatory approval, the commerce ministry was supposed to subscribe to 31 per cent of the placement shares while the ICB and Sadharan Bima Corporation would each make 10 per cent of the equity investment.

But the ratio set for the distribution of placement shares to state-run enterprises led to the filing of a writ petition challenging the regulatory decision.

What do workers say?

Talking to the FE, Bijoy Chotri, whose parents are among the workers of the NTC, said tea workers had no other option of earning money in the tea states.

"It's tough to imagine the situation of 12,000 workers who are yet to get wages for more than three months."

The meager daily wage of Tk 170 that a worker is entitled to is far less than what is necessary given the rise in the prices of essentials.

Apart from the daily wage, permanent workers get up to 5 kilograms of rice or flour each week under a ration scheme. But those, who are not permanent, and the workers, who have been given a piece of land, are not within the purview of the scheme. In many cases, the lands given are not cultivable.

Nripen Paul, secretary of the Bangladesh Teach Workers Association, said around 70 per cent of the population in the tea states were fully dependent on tea gardens for their livelihoods.

The association sent letters to the chief adviser, ministries concerned and deputy commissioners of the Sylhet division, urging them to solve the problems surrounding the NTC.

"A solution is urgent for the sake of workers, shareholders' interests and the governments' revenue," Mr Paul said, adding that workers were willing to join work for their own existence.

High cost of operations

NTC's Director Abul Hossain said the company's cost of operations was higher than income as it was unable to process tea leaves properly and timely.

For the lack of capital, the company could not ensure tree plantation within the right time. On top of that, tea leaves could not be processed, maintaining quality due to rundown machines.

The NTC sells processed tea leaves at Tk 180 per kilogram at the auctions whereas the cost of the produce is Tk 250 per Kg.

Mr Hossain said the company started experiencing losses in 2020 following the outbreak of the Covid pandemic when the demand fell drastically.

Later, the company continued operations taking loans from Krishi Banka. The NTC now owes more than Tk 3 billion to banks.

To tackle the recent crisis of funds, the NTC sought a fresh loan of Tk 460 million from Krishi Bank to pay workers. But the bank has disbursed a very small amount.

Against this backdrop, those in the management are also not receiving salaries.

Mr Hossain said division and disagreements among employees were other major reasons behind the mismanagement at the NTC.

NTC to experience further revenue loss

The company's revenue had been on a persistent decline in the four years to FY24. The NTC is likely to see another steep fall in the ongoing FY25 as the production is still halted.

The peak season in the tea states is April to November. The NTC completely stayed out of production for almost half of the duration. The peak season is about to end a week from now.

The impacts of the production loss will be reflected in the financial statements for the ongoing fiscal year.​
 

Tea industry needs climate-adaptive varieties: experts

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Workers pick tea leaves at the Tarapur tea garden in Sylhet, some 240 kilometres northeast of capital Dhaka. In Bangladesh, 1,740 kilogrammes (kg) of tea can be produced on an average from each hectare of land, while the output is 2,500 kgs in India and 3,300 kgs in Sri Lanka, according to an expert. Photo: Star/file

Bangladesh Tea Research Institute (BTRI) alongside universities need to conduct advanced scientific research to come up with tea plant varieties that can adapt to climate change while providing quality and high yields, suggested speakers at a seminar yesterday.

Commonwealth Journalists Association Bangladesh organised the seminar, styled "The State of Tea Industry in Bangladesh: Challenges and Prospects", at Sylhet Agricultural University.

In Bangladesh, 1,740 kilogrammes (kg) of tea can be produced on an average from each hectare of land, said Prof AFM Saiful Islam of the Department of Crop Botany and Tea Production Technology of Sylhet Agricultural University.

The output is 2,500 kg in India and 3,300 kg in Sri Lanka, he said in a keynote speech.

Three quarters of the tea trees in the gardens of Bangladesh are decades-old varieties, for which these produce a low volume of tea leaves, he said.

Besides, droughts lead to a 21 percent to 32 percent reduction in tea production while pest infestation leads to a drop in output of 25 percent to 30 percent annually, said Islam.

Three quarters of the tea trees in the gardens of Bangladesh are decades-old varieties, for which these produce a low volume of tea leaves, said an expert

In 1990, 45.03 million kg of tea were produced, 19.21 million kg consumed locally while 25.40 million kg exported, he said.

Last year, 102 million kg were produced while local demand stood at 95 million kg and only 1.04 million kg were exported, he added.

Sylhet Agricultural University has established a germplasm centre for tea and developed four sustainable tea plant varieties which are awaiting trials before they are offered for commercial introduction, said Islam.

The BTRI, the only state-run research centre for tea in Bangladesh, has developed 23 varieties of tea plants, he said.

The BT2 is the most popular, while the other varieties have not been able to spark that much of an interest from the cultivators, he said.

The professor urged the government for allocating more funds and manpower for the BTRI and establishment of research facilities specialising in genetical engineering for enhancing the quality of tea.

Climate change has been having an adverse impact on tea production, said AKM Rafiqul Hoque, director of the Project Development Unit of Bangladesh Tea Board.

Tea cultivation is suitable within a temperature range of 18ยฐC to 32ยฐC, he said.

However, the climate in regions where tea gardens are situated are experiencing higher temperatures, resulting in droughts and an increase in pest infestations which ultimately affect tea cultivation, he said.

Prices of fertilisers, a labour crisis, disputes over land, disruptions to power and gas supplies, a lack of availability of bank loans, outdated machinery and disputes over auctions are also affecting the industry, added Hoque.

He also urged the government to take up initiatives to counter the adverse effects of climate change, along with ensuring artificial irrigation and new climate change-adaptive varieties and training for cultivators.

A technological hub should be established in Sylhet through a collaborative approach of all stakeholders of the industry, said the seminar's chief guest, Prof Md Alimul Islam, vice chancellor of Sylhet Agricultural University.

In this place, scientists and researchers can showcase their innovations and the growers can decide on availing innovative solutions, he said.

Many stakeholders of the industry are engaged in unethical practices which need to be stopped to ensure quality production to increase exports, said Maj Gen Sheikh Md Sarwar Hossain, chairman of Bangladesh Tea Board, as the guest of honour.

"We should also break the trend of adhering to the traditional auction method to ensure good prices, while the cultivators should come out of the mindset of prioritising quantity over quality," he said.

Parveen F Chowdhury, president of Commonwealth Journalists Association Bangladesh, presided over the event.

Osman Gani Mansur, general secretary of the association, moderated the seminar while Julhas Alam, a member of the association, gave the vote of thanks.​
 

Stop the exploitation of tea workers in Bangladesh and fix the industry
Tea workers at Bawani tea garden in Habiganj

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Women tea workers of Bawani tea garden in Habiganj carrying headloads of green tea leaves, on August 26, 2024. PHOTO: PHILIP GAIN

For nearly seven weeks, more than 12,000 tea workers in 12 tea gardens under the National Tea Company Limited (NTC) have been living in anxiety about the payment of their wages. After they were paid Tk 595 on August 12, which is half of the weekly payment, the payment was halted till September 25, the day they were paid another instalment of the same amount. This is pretty bad for these workers as the Durga Puja festivities are set to begin on October 9. Thankfully, they have not stopped work and production.

However, to keep the management under pressure, the tea workers blocked consignments of made tea out of the garden warehouses. After a negotiation with the management and relevant state agencies, they allowed the release of two consignments from Patrokhola Tea Estate in Moulvibazar's Kamalganj upazila, the largest tea garden of the NTC, and one consignment from each of the 11 other tea gardens on October 1. In exchange, they were paid a week's salary on the same day, confirmed Shipon Chakraborty, panchayat president of Patrokhola. Now the deal is, these workers will release the next consignments from the warehouses when the NTC management clears dues and bonus before Durga Puja.

What we see in the NTC gardens is bad management. NTC is a public limited company formed in 1978 under the Companies Act, 1913. The state holds 51 percent of the shares, and 49 percent are traded in Dhaka and Chattogram stock markets for the general public. Of its 12 tea gardens, seven are located in Moulvibazar, four in Habiganj, and one in Sylhet.

The NTC management, for which the government is responsible, is polluted by politics. The tea gardens, taken over by the government after independence, are located in a good topographic zone, yet they perform very poorly. According to a news report, between July and December of 2023, the company posted a net loss of Tk 26.66 crore. The company's lousy tea garden management is manifested in the look of its gardens: tea plants are sparse and without enough shade trees, among other things. The company's troubles have gotten worse since the sudden political change on August 5, following which the chairman of the company's board of directors, Sheikh Kabir Hossain, reportedly a relative of ousted Prime Minister Sheikh Hasina, has disappeared and the board has almost collapsed.

The tea workers and their lone union, Bangladesh Cha Sramik Union (BCSU), are trying to negotiate with the NTC management. Half-fed or with an empty stomach, these workers have been showing their patience and working regularly in the hope that the management will stay true to its words and clear the full payment of their due wages and bonus before Durga Puja, the biggest festival of Hindus in Bangladesh.

However, NTC now faces many insurmountable challenges. According to a top government official dealing with tea gardens, it has a debt of Tk 380 crore with the Bangladesh Krishi Bank. This year, the company requested for a loan of Tk 150 crore, but the bank sanctioned Tk 86 crore only, which got exhausted by July, said a government official dealing with tea gardens, on condition of anonymity. Per the arrangement of loan repayment, brokers in auction houses transfer the bank's share of sale proceeds directly to its account. The owners get their shares. But the workers are left with no other option but to block the made tea consignments.

While NTC gardens show serious anomaliesโ€”which is typical of state-run businessesโ€”there are other private companies and proprietors in the industry that are also plagued with mismanagement and corruption that put their workers in deep crisis. The Imam and Bawani tea estates in Habiganj are a prime example here. The government official disclosed that Imam tea garden was completely shut down along with its factory in October last year after a prolonged crisis. The responsibility for the management of Bawani estate was vested on the deputy director of labour (DDL) in Sreemangal as a result. But the DDL has been having a hard time managing the estate. And the workers of these two gardens are also suffering.

The recent strike called by the Bangladesh Cha Sramik Union (BCSU) has brought the sufferings of our tea workers to the fore. They are demanding a minimum wage of Tk 300 a day to improve their day-to-day lives.

Another example of bad tea garden management is Fultala Tea Garden in Moulvibazar's Juri upazila. Around 1,600 workers in this tea garden have not gotten paid for 12 weeks, as a government official told me. The owner lives in London and has reportedly shut down the garden, though it is still in production to some extent because of the workers. With a bank loan of Tk 50 crore, the owner is in deep trouble, the government official disclosed.

The official further revealed that 79 tea gardens are in terrible shape. These gardens have not made their due contributions to the Provident Fund (PF) for months. Gas and power lines have been cut off in a number of the gardens for not paying the bills. Many of them are selling green tea leaves to other tea gardens for processing as their own factories are not running.

View attachment 9262
Tea workers busy at Bawani tea garden in Habiganj, on August 26, 2024. PHOTO: PHILIP GAIN

Many tea garden owners argue that they are in trouble because the price of tea has gone down while the production cost is rising. Indeed, the government has a policy to expand the tea-growing areas that contribute to increasing production.

Of course, there are examples of good companies that manage their gardens well, take good care of their workers within the existing framework, and make good profits. One such company is Ispahani Tea Limited, which has four gardens. The best among them is Zareen, located in Moulvibazar. While the average production per acre is around 1,600kg, its per acre production is 3,000kg, and the per acre production of all four gardens averages around 2,500kg, according to management. The price that the company gets is good. Almost all houses in the labour lines at Zareen Tea Estate are pucca. The condition of houses in other tea gardens of Ispahani are also much better than in other tea gardens. The workers get better deals with other fringe benefits, the Ispahani management claims.

It is in the best interest of the tea industry in Bangladesh, not to mention the workers, that changes happen for the better. The interim government, which has committed itself to reforms to end discrimination and inequality, should consider giving immediate attention to the tea industry that is in disarray as a whole. The tea garden workers, around 140,000 of them, and their community of around half a million people have been facing severe discrimination for generations, since the beginning of the industry during British colonial times.

First of all, the tea industry, specifically the tea gardens, need proper mapping. Good gardens and bad gardens need to be identified and the reasons must be explained for chalking out recommendations to bring the necessary changes so that none of the tea gardens are beyond scrutiny for mismanagement, corruption, and financial misappropriation. All parties involved with the tea industry must come under scrutiny and be made accountable.

Second, clear attempts must be made to ensure the well-being of tea garden workers, who are deprived of equal treatment and dignity as citizens of Bangladesh. To begin with, a just and respectable wage structure must be fixed for these workers. The former prime minister fixed their daily cash wage at Tk 170 in August 2022, which is certainly not fair. She was allegedly guided by the owners of tea gardens, and her move was political when the minimum wage board was made to fail. Now the time has come to overhaul the tea industry to ensure justice for the tea workers.

Another concern while dealing with their well-being is discrimination in the labour laws and regulations for them, and the owners' routine violation of several sections of the labour legislation, which cannot be justified in any way. While these anomalies have been exposed on various platforms, fresh consultations with tea workers, their trade union and others concerned, will definitely help bring out more details. It is a test for any government to make sure that the state agencies under the labour ministry who are responsible for executing the labour law and rules act honestly.

Tea garden workers, most of whom belong to minority communities, are largely invisible and voiceless. Wage deprivation and social exclusion from the British colonial times have rendered them a weak population, left behind in terms of education and economic progress. Equal opportunities are not enough for them. They deserve some preferential treatment to help them get out of their current condition. The interim government has a big responsibility here.

Philip Gain is researcher and director at the Society for Environment and Human Development (SEHD).​

I believe the tea garden workers are almost all of Tamil descent (some are indigenous tribal descent, called Santals). Extremely poor and subject of rampant Tea Garden abuse. the British imported these Tamil laborers from South India and they decided to become Pakistani (then Bangladeshi) citizens. The Santals came from various West Bengal communities.

Very sad. Govt. must establish laws to protect their identity and livelihood.
 

Tea production falls amid bad weather, quality push

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After a record high output in 2023, the country's tea production declined last year because of unfavourable weather conditions and tea estates opting for quality improvement to secure better rates.

Tea production stood at 9.30 crore kilogrammes in 2024, down from 10.2 crore kilogrammes the previous year, according to the Bangladesh Tea Board (BTB).

Pijush Dutta, a member of research and development at the BTB, said the decline was mainly due to erratic rainfall last year, which made weather conditions unsuitable for tea cultivation.

The tea industry in Bangladesh dates back 184 years. Most tea gardens are located in the north-eastern swathe of Bangladesh, while many northern districts have also started growing tea in recent years.

However, the quality of tea produced in the northern region is lower than that of its north-eastern counterparts.

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According to Dutta, tea estates, including those in the north, focused on quality improvement last year, which could have contributed to the lower production.

Another factor behind the decline was the prolonged closure of 12 state-owned tea gardens under the National Tea Company for more than 10 weeks in 2024 after the August political changeover, he told The Daily Star.

Dutta said the board was working to ensure that both quality and quantity improve simultaneously.

Meanwhile, tea garden owners see no potential shortage in the domestic market despite the decline, as the surplus from the record production in 2023 can cover the shortfall.

According to them, the country also does not need to import tea, as local demand has decreased.

Similar to the tea board, the Bangladesh Tea Association, a platform for garden owners in the greater Sylhet and Chattogram districts, blamed inconsistent rainfall and climate change for the production decline.

Kamran Tanvirur Rahman, chairman of the association, said that tea cultivation requires moderate rainfall, but higher-than-usual rainfall during the monsoon season last year adversely affected the yield.

Bangladesh has 169 tea gardens spanning more than 280,000 acres.

Of these, 90 are in Moulvibazar district in Sylhet, which accounts for 55 percent of the country's total production. The second-largest producer, Habiganj, contributes 22 percent.

The peak tea production season in Bangladesh is from June to November, and the country's annual tea demand is currently 8.5โ€“9 crore kg, according to industry sources.

EXPORTS HIT 7-YEAR HIGH

In 2024, Bangladesh's tea exports reached their highest level in seven years, as competitive pricing gave the country an edge over major exporters like India and Sri Lanka.

Exporters said a key driver of the increase was the preference of Bangladeshi diasporas for tea sourced from their homeland.

As of December 2024, Bangladesh exported 24.5 lakh kilograms of tea โ€” the highest annual volume since 2017, when exports stood at 25.6 lakh kg โ€” according to the BTB.

Last year's exports fetched the country Tk 382.52 million. However, tea exports have fluctuated widely in recent years.

BTB data shows that exports stood at 6.5 lakh kg in 2018 before falling to 6 lakh kg in 2019. While exports rebounded to 21.7 lakh kg in 2020, they plummeted to 6.8 lakh kg in 2021.

The volume has been rising since, reaching 7.8 lakh kg in 2022 and 10.4 lakh kg in 2023.

Industry insiders attributed the recent growth to competitive pricing, as Bangladesh offers tea at lower prices while Indian and Sri Lankan brands cater to premium segments.

Bangladesh is currently the world's ninth-largest tea producer, accounting for around 2 percent of global production, according to the BTA.

China is the largest producer, followed by India, while Sri Lanka, Kenya, South Korea, and Japan are also among the top tea-producing nations.

After independence in 1971, Bangladesh had been exporting tea to several countries, including the UK, until 1990.

Despite recent export fluctuations, the BTB has set an ambitious export target of more than 1.5 crore kg for 2025 โ€” far higher than trends in the past two decades.

The highest amount of tea exported in a single year was 1.5 crore kg in 2002, according to the BTB.​
 

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