Syllabus: GS–III & V: Agriculture 

Why in the news?
The Assam government’s proposal to acquire labour line land from tea estates and allot land pattas to tea garden workers has triggered strong objections from planters’ bodies, raising questions about legality, compensation, labour laws, and the long-term sustainability of the tea sector.

Background: What is the proposal?

• The State has passed a law to distribute land pattas to tea garden workers by acquiring labour line land from tea estates.
• District administrations have already begun preparatory steps for land acquisition.
• The move is projected as a social welfare reform aimed at providing land security and dignity to tea workers, many of whom have lived for generations without ownership rights.

Why planters are worried

• The Consultative Committee of Planters Associations has formally objected, arguing that forced acquisition without clarity on compensation and liabilities can destabilise estates.
• Planters insist that any acquisition must follow the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, including fair compensation for land and assets.

Labour law conflict

• A major legal concern relates to the Occupational Safety, Health and Working Conditions Code, 2020, which comes into force on 21 November 2025.
• This Code, which subsumes the earlier Plantations Labour Act, still mandates tea estate managements to provide housing, water, sanitation and basic amenities to workers.
• Planters argue that even after land transfer, these statutory obligations will continue unless the law is amended or State Rules clearly reassign responsibilities.
• They demand early notification of Assam State Rules under the Code to avoid dual responsibility—where land is owned by workers but welfare duties remain with management.

Financial and banking risks

• In many tea estates, labour line land and housing infrastructure are mortgaged to banks as collateral.
• Any acquisition without lender consent could lead to loan defaults, litigation, and credit downgrades.
• Planters warn this could restrict future access to finance, already a major challenge for a sector facing rising costs and stagnant prices.

Operational and long-term concerns

• Tea estates function as composite economic units, where housing, labour availability, and production are interlinked.
• Granting heritable or transferable land rights may result in:
  • Workers or heirs leaving plantation work, reducing labour availability.
  • Scarcity of land to house future workers.
  • Gradual fragmentation of estates, affecting productivity and competitiveness.
• Bodies like the Tea Association of India caution that such disruption can undermine the economic viability of Assam’s tea industry, which supports lakhs of livelihoods and exports.

The welfare perspective

• From a social justice angle, land pattas can:
  • Provide tenure security and protection against eviction.
  • Improve access to government welfare schemes.
  • Enhance dignity and inter-generational asset creation for tea workers, who historically faced exploitation.
• However, experts note that poorly designed implementation may hurt the very workers it seeks to empower if estates weaken or shut down.

The way forward

• A consultative and phased approach is essential:
  • Dialogue with planters, workers, banks, and local administrations.
  • Clear compensation mechanisms under land acquisition law.
  • Explicit demarcation of welfare responsibilities between the State and managements post-transfer.
  • Possible models include long-term lease rights, conditional pattas, or cluster housing with state-led services instead of outright ownership.
• Aligning worker welfare with economic sustainability is key to preventing unintended consequences.

Exam Hook – Key Takeaways

• Worker welfare reforms must be balanced with sectoral sustainability.
• Legal clarity under labour codes and land acquisition laws is crucial before implementation.

Mains:
Critically examine the proposal to allot land pattas to tea garden workers in Assam, highlighting its social benefits and potential economic and legal challenges.

SOURCE