Guwahati: The Indian Tea Association has said there needs to be a 20 percent wage differential between tea estates in Barak and Brahmaputra Valley.

" In view of the economically weaker position of Barak Valley tea industry vis-a-vis Brahmaputra Valley and the prevailing price differential price levels, it is necessary that a wage differential of at least 20 percent be maintained between the two areas to enable a level playing field for the Barak Valley to remain competitive in the market," the association said.

While there is no guarantee that tea prices would increase in the near future, it is certain that wages would be increased further with the notifying of Minimum Tea Wages. " As labour and employment costs constitute 55 to 60 percent of the total cost of production, this would increase the cost pressures on tea estates," it said.
The wage differential has over the years has now come down to 12 percent. The difference in auction prices between the two areas is around 20 percent.
The Barak Valley had historically lower wages than the rest of Assam and this has been recognised by the Assam govt in its wage notifications.

Section 3(3)(a)(iv) of the Minimum Wages Act, 1948 permits fixing of different Minimum Wages for different localities.

The average yield per hectare in the Brahmaputra Valley is also higher than tea estates of Barak Valley. The difference has also been recognised by the Central Wage Board published on April 1, 1966 notifying separate wages for the Brahmaputra and Barak Valley.

The Indian Tea Association has urged the Assam government to take it with the Centre for sending teas from Barak Valley to the Srimangal tea auction centre in Bangladesh.

A tea auction centre is presently operating at Srimangal in Bangladesh which is 100 km from the town of Hailakandi in Cachar. "Teas from Cachar can easily cater to the requirements of the Srimangal auction centre," the tea association said.
Barak Valley comprises of Cachar, Karimganj, and Hailakandi districts of Assam. Barak Valley is the Southern region of Assam with a share of around 6.5 percent of Assam’s tea production.

India and Bangladesh teas have many common features and Bangladesh traditionally imported Indian teas from Barak Valley, Dooars, and Terai.

It said there is immense potential for teas from Barak Valley to service the Bangladesh market. "The tea producing areas of Cachar and Tripura are bordering Bangladesh and have easier road access to various cities of Bangladesh thereby offering a competitive advantage in terms of logistics," it said.