Live Mint January 19th 2012

Embattled Dooars tea estates scouting for buyers

Some of the gardens in the region have already been shut as owners couldn’t pay wage arrears

Manish Basu

Kolkata: The owners of at least 40 tea estates in West Bengal’s Dooars region say they are looking for buyers because they are unable to cope with the increased cost of producing tea.

Some of the embattled gardens have already been shut because owners couldn’t pay wage arrears, according to the Indian Tea Association (ITA), an industry lobby.

Under pressure from political parties and the state administration, tea garden owners agreed to raise workers’ daily wage by `18 to `85 with effect from 1 April last year. The wage negotiations were concluded in November, and at least half the wage arrears were to be paid before 25 December. ITA says at least one-fifth of the Dooars’ 220-odd tea estates were unable to fully pay the first instalment of back wages by that deadline.

The state’s commerce and industries department-controlled West Bengal Tea Development Corp.(WBTDC) was also not able to pay the wage arrears within the deadline, said Ziaul Alam, secretary, Cha Bagan Majdoor Union, a plantation workers’ union affiliated to the Centre of Indian Trade Unions—the labour arm of the Communist Party of India (Marxist). WBTDC runs two gardens in the Dooars—Hila and Mahua.

On Friday, West Bengal commerce and industries minister Partha Chatterjee had said WBTDC was looking to induct partners to “revive” the five tea estates under its control—its other three estates are in Darjeeling. All of them, he admitted in a public speech, are currently losing money.

Santanu Sanyal

KOLKATA, JAN. 4:

Tea Board of India has decided to take a fresh look at the prevailing price sharing formula which is supposed to ensure a remunerative price to small tea growers as well as a fair return to bought leaf factories. The present formula, modelled after the one at Sri Lanka, incorporated in Tea Market Control Order (TMCO) and introduced in 2004, has not yielded the desired results so far mainly to due the lack of transparency.

At a high-level meeting here on Wednesday, Mr M G V K Bhanu, Chairman of Tea Board, announced the formation of a study team to examine the relevant issues relating to the price sharing formula and publication of a report. Based on the findings of the report, unlikely to be ready before 2013 as a full season would be covered, it was indicated that the relevant provisions of the TMCO might be amended. The representatives of Indian Tea Association and Tea Association of India, among others, were also present. 

The Telegraph North East

Jorhat, Jan. 1: The decision of the Tea Board of India to shift its regional office from Guwahati to Jorhat and set up a separate directorate for small tea growers in Dibrugarh, has been widely hailed by the tea industry in Upper Assam.

Former chairman of Assam Tea Planters’ Association and tea planter Raj Barooah said Jorhat being considered the tea capital as well as the cultural capital of Assam, it was definitely a very good move to shift the office from Guwahati to Jorhat.

“Upper Assam is the tea belt of Assam and contributes to the largest amount of tea to the country. Historically also if one sees, it will be seen that tea plantations were started by the British from Jorhat and this part of the state and it is only right that the office be located here,” Barooah said.

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December 21st 2011

The Economic Times

KOLKATA: MARS Group of companies, the largest importer of Gurjan timber in India and leading producer of plywood and face veneer, has acquired five tea estates in North Bengal. The tea eardens which the company has acquired are Raimatang, Kalchini, Buxa Dooars and two more in the same area. The company aims to invest Rs 100 crore for acquiring more tea gardens in eastern India.

Mr. Roshan Lal Agarwal, chairman and managing director of the company said: “Last year, MARS Group had taken the decision to take over of closed tea gardens in Dooars region of north Bengal. We have not only sorted out and overcome the problems regarding various issues including many statutory settlements and other associated problems. 

The Telegraph North East

23rd November 2011

Tea industry stirs success recipe
Revamp marketing policy: UK scientist

WASIM RAHMAN

Prof. Mark Kibblewhite of Cranfield University. Telegraph picture

Jorhat, Nov. 22: Assam tea has failed to capture the market in the very country whose planters made it a marketable commodity in the state 150 years ago.

The situation, however, can be turned around with a better marketing strategy, Mark Kibblewhite, an eminent tea scientist and a professor at Cranfield University in the UK, told The Telegraph on the sidelines of World Tea Science Congress which began at Tocklai Experimental Station at Cinnamara, on the outskirts of this town, today.

The professor said Assam tea had a considerable demand in the UK but was not easily available. While varieties from across the world are found on the shelves of shopping malls there and are picked up by buyers, the availability of Assam tea is very limited and one might find it only in a small corner of a shelf.

The Telegraph Saturday , November 5 , 2011 Rate now: Rs 85 a day - Plains tea workers get Rs 18 raise OUR BUREAU Nov. 4: The wages for workers of the Terai and Dooars tea gardens were revised at a tripartite meeting in Calcutta today, the hike of Rs 18 making it almost equal to the amount that the workforce in the Darjeeling gardens has been getting since April this year. According to the three-year agreement, the daily wage of the workers will be Rs 85 for the current year, Rs 90 for 2012-2013 and Rs 95 for the financial year ending on March 31, 2014 (see chart). Earlier, the daily wage in the plains gardens with 2.5 lakh workers had been Rs 67.

Among all the applications which form part of an ERP for tea plantations, the payroll module  is by far is the most critical and important. We have large tea estates with employee strength around 2500 to 3000 workers in the peak season running their payroll on the RDG Teapac system. In my view this application is mission critical as the non payment of wages on pay day is not an option.

So what constitutes a good payroll application?

The main features are summarised below:

• Fast and efficient daily attendance entry
• Capturing activity,  green leaf quantity and section number all in the same entry
• Checklists to verify correct data entry
• Daily garden kamjaris and analysis of Mandays
• Summary of work force including sick, maternity, leave, absent etc at a glance.
• Provident Fund – including Form 1, Form 5, PF ledger, PF advance, Refund
• Leave Records
• Leave with wages
• Bonus
• Gratuity
• Rations
• Census
• Pay registers
• Auto Vouchers to the Accounting System for the wages cost activity wise

So the next time you are looking for a payroll software for you tea estate please do consider these features!

The Telegraph August 6th 2011

OUR CORRESPONDENT

TEA EMBARGO BACK The Bharnobari tea estate on Friday. On Thursday, the manager of the garden, Nanda Kishor Singh, was made to walk more than 2km to the Hashimara police outpost by workers who complained about his alleged highhandedness. Manager Singh had threatened that a lockout would be declared in the garden. But no lockout notice was put up on Friday. Text and picture: Anirban Choudhury Siliguri, Aug. 5: The despatch of tea from gardens in the Terai and the Dooars was stopped once again this afternoon after talks between trade unions and planters over revision of wages broke down. An apex body of trade unions has also called a 48-hour strike in the tea sector next week if their demand for a daily wage of Rs 130 a day is not met. Labour minister Purnendu Bose said another round of tripartite meeting might be called on August 9. “I might attend the meeting. If the planters remain rigid on their stand, I will have no option but to seek the intervention of the chief minister,” Bose said. At a tripartite meeting in Calcutta today, planters rejected the demand of the Defence Committee for Plantation Workers’ Rights, which wants Rs 130 as daily wage for the garden labourers. The Defence Committee is one of the apex bodies of tea trade unions in north Bengal. The Progressive Tea Workers’ Union (PTWU), which had initially demanded a daily wage of Rs 250 brought it down to Rs 130 during yesterday’s talks, said intimation to stop the despatch of tea had been sent to the 208 gardens of the region this afternoon. “We had asked for a daily wage of Rs 130 and were ready to negotiate but the planters insisted on bringing it down further,” said Samir Roy, convener of the Defence Committee. “So, we have decided to go ahead with our previously announced programme — the strike in the industry on August 10 and 11.” The Defence Committee has also called a general strike in north Bengal on August 12. “We will appeal to political parties to support us and our strike on the 12th,”said Roy. The planters admitted that the strikes next week would hit the industry hard.

BS Reporter / Kolkata July 8, 2011, 0:49 IST

The domestic tea industry is likely to end the year with a production deficit of 100 million kg, despite good weather conditions and a higher crop.

Last year, during January-December, production was 966 million kg and the industry expects it to be 990 million kg this year. The increase in production will just about take care of the yearly consumption increase. On an average, the domestic consumption increases by about 30 million kg every year.

“The year started with a shortfall of 100 million kg. I dont think the production increase will mitigate the deficit. It will be enough to absorb the consumption increase. But this year looks much stronger than the previous year when we lost crop during the quality period,” Aditya Khaitan, managing director of the world’s largest bulk tea producer, McLeod Russel (India), said.

Tea prices have risen Rs 15-20 a kg. Tea stocks reflected the sentiments voiced by the industry. The McLeod Russel stock touched a high of Rs 287.90 on the Bombay Stock Exchange, a 52-week high. Jayshree Tea and Industries also scaled a high of Rs 181.90, close to its 52-week high of Rs 210 a share.

“What has led to the firming of prices is a global shortfall,” industry representatives pointed out. Week-to-week prices at Mombasa auctions showed that prices were up by 60 to 70 cents. Africa has registered a shortfall of 45 million kg till now. The industry expects that the annual global shortfall to be around 55 million kg.

“Last year, our exports were at 22 million kg. This year, we have a target of 25-26 million kg,” Khaitan said.

Both crop and production were up in May, officials of the Indian Tea Association said.

According to figures on the Tea Board website, up to May, the crop was higher by eight million kg at 243 million kg. May alone saw an increase of 3.5 million kg in production. The increase was primarily in Assam and North Bengal, while south India actually saw a marginal dip in production.

Up to April, production was down by 5 million kg.

Exports for May were up but by less than a million kg. The unit price of exports saw a huge jump from Rs 141.28 a kg from Rs 115.84 a kg last year.

Exports at the beginning of the season, however, were down. During April to May, exports stood at 22 million tonnes while in the previous year they were close to 24 million tonnes.

The Indian Tea Association is yet to release the latest figures, but both crop and production were up for the month of May, officials of the association said. Exports for May were up by one million kg. Till March, world production was down by 31 million kg.

Industry representative indicated that if the weather conditions maintained the current pattern then the year would close with a deficit of about 155 million kg.

RDG Systems and Software Pvt Ltd has signed an agreement with Badulipar Limited, owners of Koomtai Tea Estate for installation and implementation of Teapac, an ERP software for the tea industry. Koomtai is the biggest tea estate in the Jorhat  district with an area under tea of 1200 hectares with the processing factory producing about 22 lacs kg tea annually.This estate has six independent divisions with 8 Asst. Managers , 2 welfare officers 2 medical officers, 118 sub staff,, 88 staff members and 2500 permanent workers and about 3000 casual workers . This is presently the single largest estate in the RDG stable  which will run Teapac. We look forward to a speedy and efficient implementation and thank Mr Mayank Saraf and his team for placing  his  faith in RDG.

An interesting article on mechanical harvesting of tea by Harki Sidhu

http://teachai.blogspot.com/2011/06/mechenical-harvesting-of-tea.html

STUART GRAHAM | LUSIKISIKI, EASTERN CAPE, SOUTH AFRICA – May 30 2011 12:20

Tea plantation faces collapse after worker rampage

The largest tea estate in the southern hemisphere, Magwa Tea outside Lusikisiki in the Eastern Cape, faces ruin after being looted and abandoned by its workers earlier this year.

The 1 803 hectare farm had a turnover of R65-million a season and provided jobs and career training for 1 200 permanent and 2 300 seasonal workers.

In February, the farm was shut down when workers, the highest paid in the tea industry, went on the rampage after management refused their demand for a 104% increase. 

There has been a revision in the price of Teapac – an ERP software for tea plantations from 1st April 2011. The present pricing is given below:

• Base Software cost per garden  - Rs 3 lacs plus taxes
• Implementation  - Rs 1500/-  per day plus taxes for  implementation team on site at garden.
• Software maintenance charges after one year – Rs 50,000 per garden plus taxes
• Customisation  -   be assessed per garden and quoted separately depending on need of the customer

These prices will remain valid from 1st April 2011 to 31st March 2012.

The Telegraph

Rs 23 hike in tea wage VIVEK CHHETRI Better deal at hand: Workers pluck tealeaves in a hill garden Darjeeling, March 31: The Darjeeling Tea Association today inked a deal with the Gorkha Janmukti Morcha and other parties to increase the daily wage of hill garden workers by Rs 23, a day before the new agreement on the payment comes into force. The Morcha had been demanding that the wage be increased from Rs 67 to Rs 120-150 a day, but the DTA and hill unions agreed to settle for Rs 90 at a meeting last night. The new pact will be in force for three years from tomorrow.