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Tea Here Now

In India, fair trade is changing a centuries-old industry

By Nina Luttinger and Gregory Dicum
05 Jan 2006
Read more about: business | India | all of these topics
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The cool, misty highlands of the Western Ghats punctuate south India's steaming tropical plains. Their forests shelter tigers and elephants, and protect the fragile watersheds of the flatlands below. They also harbor pieces of a colonial legacy: the tea industry.

Tea retiree.
Click here to see a gallery of photos from tea estates in India.

Colonial authorities and entrepreneurs established the first tea estates in this country in the 19th century, marrying British management and capital with Indian land and labor. The estates were worlds unto themselves, remote colonies-within-a-colony with no nearby settlements. Plantation owners provided housing and provisions, and managers lived on-site, in picturesque bungalows overlooking impossibly rolling vistas covered with the profitable crop. They took tea and glasses of whiskey from silver trays proffered by white-uniformed Indian butlers.

After independence, in 1947, new labor laws required estates to provide schools, housing, and medical clinics. Though this improved the prospects for workers' children, it didn't make a life of plucking tea much easier: even today, the hours are endless, the slopes steep, the sun blinding. Workers spend at least nine hours a day, six days a week traversing these hills. For this they earn a base pay of less than two dollars a day, which puts them at the top end of agricultural laborers in India. A class of Indian managers has moved seamlessly into the bungalows vacated by the British, giving these estates the feel of a land out of time -- a forgotten eddy of history.

The future of Indian tea -- which about 10 million people here rely on for their livelihood -- is uncertain. Auction prices in south India have dropped by a third since 1998, in part due to economic stagnation (Russia), war (Iraq), and competition (even India itself, the world's largest tea consumer, now imports the low-cost African variety). Climate change threatens to parch these lush hills. And as the country's 88,000 estates consolidate into ever-larger industrial concerns -- Hindustan Lever and Tata Tea, the two biggest companies, command about 60 percent of the domestic packaged-tea market -- workers are finding themselves out of work, or finding their hard-won protections under attack. Malnutrition and suicide rates are increasing.

Recently, a new angle has come to these steep hills: fair trade. Last year, we visited three plantations in the Western Ghats that are monitored by Bonn-based Fairtrade Labeling Organizations International. They are among 26 producer groups that grow tea under remarkably high labor and environmental standards, earning the right to be marketed as certified around the world. The premium paid by buyers goes into accounts controlled by democratically elected boards of workers on each estate, and is used to create retirement funds, or to invest in astonishingly well-equipped clinics, schools, and recreational facilities.

Click here to see more photos.
Fair trade is giving workers' children the chance to leave the estates and enter the rapidly growing Indian middle class -- upward mobility simply out of the question for their tea-plucking forebears. It has reduced the labor strife common on other estates (this year half a million tea workers went on strike in West Bengal). The organic and biodynamic techniques of many operations improve worker health, help estates better cope with drought, and provide a top-quality product to demanding European markets. In an uncertain global context, fair trade is bringing together workers, management, and consumers -- turning this colonial commodity relationship on its ear.

Read more about: business | India | all of these topics
Tools: print | email | discuss | write to the editor | subscribe | RSS
Nina Luttinger is a freelance writer and consultant in the sustainable-products industry who co-authored The Coffee Book: Anatomy of an Industry from Crop to the Last Drop with Gregory Dicum. Previously, she worked for the fair-trade certification organization TransFair USA.
Gregory Dicum is the author of Window Seat: Reading the Landscape from the Air. He writes a biweekly column for SFGate, the online edition of the San Francisco Chronicle, and has written for the New York Times Magazine, Harper's, Mother Jones, and others.
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tea and fair trade

As I understand the article, India now imports cheaper tea from abroad.  What is not made clear is that this is the aspect of fair trade that concerns the emerging nations.  Individual countries cannot, under fair trade, maintain protective import duties to keep their own native industry alive and profitable.  

This is what fair trade is about.

The article further fails to make clear that the tea workers are farming organically, thereby creating a specialized niche for their product in the world.  The remaining farms who do not for various reasons, farm organically, are victims of "fair trade" who leave them with a product they cannot sell at a profit.  
The article scarcely cover the major impact of "fair trade", the extinction of the small landowner and farmer.  
Just the one scentence dedicated to the result of "fair trade" is included in the article; that more and more of the plantations are reverting the the colonial era style of ownership---huge acreage amassed into a single ownership.  The only difference between colonial ownership and the huge land-owing corporations formed under "fair trade" is that one is now promoted and the other out of favor.  
In actual fact there is no difference to the worker who now has to work at the global conglomerate on land that is not his and never will be for a pittance so he will make the product sellable on the world market where somebody else always makes lower wages than him.  
Fair Trade is not fair for the worker force to compete; fair trade is a disguise for global corporates to be heralded as the new enterprise!

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