Tea companies urge Assam government to keep garden lease period at 30 years

GUWAHATI: The tea industry in Assam has requested the state government to keep tea garden lease settlement period at 30 years.

The government has recently cut the duration to one year. The industry has said that such short duration like one year will impact the financial health of tea estates as they would not be able take bank loans and banks would be reluctant to accept land as collateral security.

The state revenue and disaster management department issued a notification recently, renewing the garden leases for only one year ending September next year.

The notification has come at time when tea planters are fighting for lowering the land revenue rates. In Assam, the rate of land revenue has increased by about 80% with retrospective effect from 2003.

Sources in the tea industry said, “In 1977, land certificates were issued. It was a practice to grant a 30-year lease. The one-year lease period is illogical. Banks prefer long lease as the tea industry takes huge bank loans. One-year lease period will hamper long-term planning.” Assam tea production was estimated at 480.2 million kg last year. At least 2.7 lakh hectares are under tea production in the state.