The Indian Tea Association (ITA) is currently working with the Tea Board to identify specific action areas for increasing land productivity. The association is also making efforts to reduce labour costs.
To reduce labour costs, the ITA has proposed deferment of wage increases that are due shortly, restructuring of wages and benchmarking of labour practices against the best available within the industry and worldwide.
Bharat Bajoria, chairman of the association, said the Assam tea industry, which was the backbone of the country's tea trade, should start negotiating with trade unions to explore possible means of containing and reducing costs.
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Sluggish demand had led to depressed prices in north India, Bajoria said and added that the fall in realisations was a matter of concern and should be viewed against the backdrop of rising costs of production.