North Bengal tea industry on the way to revival after July Uprising
Sarkar Haydar, Panchagarh
Published: 18 Apr 2025, 12:08 AM
The tea plantations in the plain lands of the Northern part of the country are gradually recovering after being liberated from the grip of syndicates following the July Uprising.
North Bengal is the third-largest tea region in the country, and small tea farmers have been transforming their fortunes by cultivating tea in this area. However, for the past 15 years, they have struggled to receive fair prices due to the influence of tea factory owners' syndicates.
Md Arif Khan, in charge of the Panchagarh regional office of the Bangladesh Tea Board, stated, “The tea industry in North Bengal has been revitalized by dismantling the syndicate. In 2024, 14.40 million kg of processed tea was produced, and a target of 15.94 million kg has been set for production in 2025.”
Deputy Commissioner and President of the District Green Tea Leaf Pricing Committee, Md. Sabet Ali, added, “The tea industry has been restored to its former status after conducting marathon meetings with stakeholders. Initiatives will also be taken to address any minor remaining issues, which we hope to resolve soon.”
Tea farmers have endured years of unfair pricing for their tea leaves. Consequently, instead of supplying two leaves per bunch, many farmers have resorted to providing 5 or 6 green leaves. The factories then produced tea from these leaves at lower prices, claiming deductions.
This practice led to a decline in tea quality, harming the reputation of the North Bengal tea industry in the auction market. Furthermore, many farmers shut down their tea gardens due to the lack of fair compensation for their green leaves.
After the July Uprising, the local administration held several meetings with stakeholders, forcibly breaking up the syndicate and establishing a new pricing structure for farmers. Farmers were instructed to supply three leaves instead of 5 or 6. Currently, they are adhering to this new guideline.
Factory authorities are now buying raw tea leaves at a price of Tk 17 per kg with no deductions. Although high-quality tea is produced in North Bengal, farmers and tea workers report that while they can cover their production costs by supplying three leaves, they are still not making a profit. Additionally, tea workers claim they are being deprived of fair wages.
Manik Khan, a young tea farmer from the Amarkhana area of Sadar upazila, mentioned that the collapse of the factory owners' syndicate after the July Uprising has changed the landscape. Factory owners no longer cut prices under the guise of deductions and pay a fixed price. However, since tea weight has decreased due to supplying only three leaves, profits have not improved even at Tk17 per kg for green leaves. With rising costs of living, he argues that the price of green leaves needs further adjustment.
In contrast, factory owners argue that the government has imposed a VAT of Tk3 on tea supplies. Although this is intended to be charged to farmers, factory authorities end up absorbing the loss.
Asaduzzaman, managing director of Sajeda Tea Factory Limited, noted that if this Tk3 VAT is imposed on farmers, it will lead to losses for the factories. If they continue to incur losses from this VAT, it could threaten their operations. He advocated for a suitable solution regarding this matter.
Meanwhile, bidders and buyers in the tea industry have noted that high-quality tea is now being produced in the northern region. However, they pointed out that a significant syndicate in the tea industry centred around Sylhet and Chattogram still exists. If this syndicate could be curtailed, the tea industry in North Bengal could progress even further.
Roni Sheel, owner of Dada Enterprise and a buyer at the Panchagarh Auction Market, remarked, "We must deposit 15% VAT in advance. It would be beneficial to reconsider this policy. Additionally, if the larger tea syndicate based in Sylhet and Chattogram is controlled, the tea industry in North Bengal will flourish."
Experts advise that the government should pay more attention to this industry, ensuring fair practices are upheld.