FTA with UK and EU will boost Assam's tea market says CM Himanta Sarma
Davos, January 21
Speaking at the World Economic Forum in Davos, Switzerland, Assam Chief Minister Himanta Biswa Sarma highlighted the transformative potential of upcoming international trade agreements for the state's tea industry.
In an interview with ANI, the Chief Minister emphasised that while India's domestic market remains robust, the operationalisation of Free Trade Agreements (FTAs) with the United Kingdom and the European Union will be a major breakthrough, opening vital new corridors for Assam's tea exports.
Sarma noted that, "Assam tea is not a raw tea; we have now launched a lot of new products in the market. It has a huge cosmetic value. It has medicinal value and you can also create a new kind of tea by mixing tea with various good Ayuvedic products which we are doing."
Addressing the structural challenges facing the sector, the Chief Minister pointed out the high "social cost" currently borne by Indian tea planters. He compared the local situation to competitors in Kenya and Sri Lanka, where planters do not carry the same level of responsibility for the social welfare and infrastructure of the labour force. Sarma stated, "cutting cost of production is the main theme that how you can cut the cost. So, now we have adopted the labour code and I think we will be able to give a different kind of cost benefit assessment for our tea industry."
To tackle these issues, the Assam government has adopted a new labour code and launched various incentive policies designed to provide a better cost-benefit assessment for the industry. These measures, combined with the expected market access from the FTAs, are intended to stabilise the industry and empower local growers.
Sarma concluded by expressing confidence that once these agreements are in place, the "India team," led by the strength of Assam tea, will secure a dominant position in the international market.
— ANI
Reader Comments
Good to see focus on value addition - tea with Ayurvedic products is a brilliant idea. But CM Sarma's point about "social cost" is crucial. Our planters provide housing, schools, hospitals. How can we compete with Kenya if we bear these costs and they don't? New labour code must balance worker welfare with industry survival.
As someone in the import business, high-quality Assam orthodox teas are already in demand here. An FTA removing tariffs would make them much more competitive against Ceylon and African teas. The focus on cosmetic and medicinal value is smart branding for the European wellness market.
While FTAs are welcome, I have a respectful criticism. We've heard such promises before. The real issue is the price the planter gets. Middlemen take the biggest share. Unless the government ensures a direct export mechanism and minimum support price, the "dominant position" will remain a Davos dream.
Assam tea with Ayurveda is a powerful combo for global markets. But we must protect the GI tag fiercely. Also, hope the new labour code doesn't end up diluting the hard-won rights of tea garden workers in the name of cutting costs. Their welfare is non-negotiable.
Finally! My family has a small tea garden in Jorhat. For years, we've been struggling with low prices and high input costs. If the UK FTA happens, it will change our lives. Bahut acha lag raha hai sunke! 🤞 The government must now help with certification and export procedures for small players like us.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.