Tea cultivation on small holding: A new business opportunity for the indigenous people of Assam

The tea industry of India has been a long journey since 18^th century. It is one of the oldest organised firm sectors with a large network of tea producers, retailers, distributor, auctioneers, exporters and employees.The growth of this industry in India was responsible for the development of infrastructure and the regional economy of many backward regions of the country. Among the tea producing states of India, Assam dominates the country's tea map by producing almost half of total tea production of the country.

After independence, the tea industry of India has witnessed many structural changes like change of ownership from British to the Indian entrepreneurs, emergence of Small Tea Growers (STGs) in place of big tea estates, Bought Leaf Factories (BLFs), etc. Cultivation of tea on small holding has gained considerable momentum in the state like Assam. It is now contributing nearly 29 per cent of the total production of the state and 14 per cent of the country's production. Being a labour intensive industry it is the source of employment for the indigenous people of Assam. It has the potentiality for making a positive economic impact ensuring new employment opportunities, proper utilisation of local resources and source of revenue. It is estimated that there are nearly 70,000 Small Tea Growers (STGs) in Assam creating employment for around 1.5 lakh people apart from producing innumerable rural entrepreneurs with the potentiality to transform the socio economic condition of rural Assam.

This paper will highlight the prospects and problems of small tea cultivation in Assam based on secondary sources of information.