Mapping the Tea Producing Societies (SHGs) in India

Abstract

This chapter explores the visibility of tea smallholders in the supply chain of tea industry in India. As known fact, the smallholder farms are unorganized and disintegrated, fragmented holdings, low economies of scale and out of influence of the formal financial institutions and credit sources. Their formal recognition is yet to reach the fullest potential in the small tea growing states and absence of appropriate policy disregards their existence and formalizes economies. Very few STGs are registered with Tea Board of India. Considering all factors, the Tea Board of India introduced collectives or group approach in the form of Tea Producing Societies (SHGs) during Tenth Plan period. The Tea Producing Societies (SHGs) are identified as the lowest-order business models in the tea supply chain and allows visibility of smallholders in the tea industry. These Societies have improved somehow their bargaining strength of growers across the States and resulted into better deal and business linkages with BLFs. It further elaborates the available policy options for Tea Producing Societies (SHGs) in Indian context and analyses its changes over the different plan periods during 10th, 11th and 12th plan of Tea Board of India and identifies the types of extension services and skills development measures provided to SHGs. The agrarian relations of Tea Producing Societies (SHGs) in their hinterlands in four states, i.e. Assam, West Bengal, Tamil Nadu and Kerala are highlighted. The relevant issues like cost of production and processing, outturn percentage, farm-gate green leaf price realization, quality measurement techniques of green leaf assessment, etc. are mentioned. It is observed from the field that in Dooars region of West Bengal only tea district in the country where smallholder SHGs have managed to established  tea factories with the financial support of Tea Board on India and process green leaf and participate in tea marketing. The governance and emergence of new institutions with regard to small-scale tea cultivation in India have been discussed during the period 1960–2017. To cater to the needs of smallholders, several news institutions have been innovated in their governance. The Cooperative Factories (CPFs), Bought-Leaf Factories (BLFs), Tea Producing Societies (SHGs), etc. are new to tea economy. Similarly, the Confederation of Indian Small Tea Growers Associations (CISTA) was formed in 2007 as an apex body of all STG Associations in different states in India. The Small Growers Development Directorate (SGDD) and Sub-Regional Offices (SROs) of Tea Board of India during 12th plan are some of the important  institutions came up to fulfill the needs of small-scale sector.