The Tea Industry in Panchagarh is Recovering with a 111.56% Increase
Staff Reporter: The tea industry in the plains lands is beginning to recover with the touch of digitalization and proper supervision. Panchagarh and the entire plain land tea industry have set a new production record, surpassing all past achievements.
In recent years, several irregularities have plagued the industry, including issues such as fair pricing for farmers, smuggling, lack of proper statistics, and a decline in auction prices. Towards the end of 2024, Major General Sheikh Sarwar Hossain, USP, NDC, PSC, became the new chairman of the Bangladesh Tea Board. After his appointment, he initiated discussions with all stakeholders, including tea farmers, traders, local administration, law enforcement, customs, and other agencies, focusing on preventing smuggling.
Subsequently, he revamped the Bangladesh Tea Board’s regional office in Panchagarh, and Arif Khan, an officer from the Project Development Unit (PDU), was appointed as Officer in Charge. Under the intelligence and leadership of the Chairman, the tea industry in Panchagarh has started its recovery. In previous years, farmers were heard protesting about not receiving fair prices. The district administration had set the price of raw leaves at 17 Taka (0.14$) per kilogram, but tea factories paid as low as 8-9 Taka, with a maximum of 14 Taka ($0.11) per kilogram.
Farmer Jahangir Alam from the Tirnai Hut area of Tetulia Upazila in Panchagarh shared, “We are now developing the habit of delivering quality leaves. Last season, I received a maximum of 15 Taka per kilogram, with a 35% cut. This season, I have received 22.50 Taka ($0.18) per kilogram, with only a 15% cut.” However, he added talk on, “Tea cannot be sold without a local broker at the factory. If we could sell directly, we would receive better prices. The increase in fertilizer and pesticide prices is also making it difficult for us to produce.”
Farmer Saiful Alam from Mirzapur village in Atwari Upazila in Panchagarh also stated, “We are getting better prices now, and the cutting rate is lower compared to before. Almost all farmers are now using machines for plucking tea, which is more convenient for everyone. I am hopeful for better times ahead.”
Mohammad Alauddin, a farmer from Islambag village in Panchagarh sadar upazila, mentioned, “Last year, I received 14 Taka ($0.11) per kilogram, and this year I’m getting 17 Taka ($0.14), with a maximum of 20 Taka ($0.16) per kilogram. However, if factories buy directly from us, we would get a fair price. We have to deal with brokers, and if the Tea Board and administration could regulate this, it would be better for us.”
According to data from the Bangladesh Tea Board, even though the green leaf statistics from last year were unavailable, they managed to gather data for green leaf in May through the TeaSoft system. In May, a total of 11,139,564.99 kg of green leaf were collected from the plain lands. Additionally, in March, April, and May of last year, a total of 1,757,766 kg of processed tea was produced. However, this year in the same months, the total production reached 3,416,002 kg, showing a 111.56% increase, breaking all past records despite severe drought, lack of rain, and uprooted tea plants. This year’s production has set a new benchmark.
Moreover, not only the quantity but also the quality of tea has improved in the factories of the plain lands. Arif Khan, the in-charge of the Bangladesh Tea Board – Panchagarh, stated, “Our main objective is to maintain the quality of tea, bring tea factories into proper regulations, identify the mistakes, and find the correct solutions to bring everything in line. As you can see, tea prices in the auction market have been increasing, mainly due to quality and transparency. We hope to see even better results in the future.”
It has been observed that, compared to last year, the tea factories are now receiving fair prices in the auction markets. More importantly, the tea marketing process is being done according to proper regulations. Last year, the tea factories were frustrated with not receiving fair prices and had been marketing their tea illegally and irregularly. As a result, buyers and brokers were also disappointed in the auction markets. However, under the proper supervision of customs and the Tea Board, the factories are now compelled to comply with regulations. Moreover, using the Bangladesh Tea Board’s TeaSoft software, tea dispatches are now being handled according to proper regulations, with accurate statistics and a database of farmers.
Last year, the tea sold at the auction market in Panchagarh was priced at 160 Taka ($1.31), while irregular tea in the open market sold for 130-140 Taka. This year, the auction price has risen to 168 Taka ($1.37) , and some irregular tea is being sold for 160-170 Taka. If sold correctly, the price would have been around 200.60 Taka, including VAT, tax, cess, and broker warehouse charges. The irregularities lead to a loss of 29.45 Taka per kilogram for the government.
Breaking all past records, the tea industry in the plain lands has now set new benchmarks in both production and quality. Dr. Pijush Dutta, Joint Secretary (Research and Development) of the Bangladesh Tea Board, expressed, “We have improved Panchagarh, and with the effort of the Chairman, we have shown visible improvements this year. In the past, everyone thought of tea as coming only from Sylhet, but now the contribution of Panchagarh tea is being recognized. The quality of Panchagarh tea, which was once criticized, is now getting good prices in the auction markets. Regarding the past inefficiencies, it might have been due to a lack of statistics or transparency. Concerning smuggling, we are working together to prevent it further. Additionally, a sales and buying center has been opened by the Bangladesh Tea Board for the tea farmers of Lalmonirhat, where they can easily sell their leaves and get fair prices.”
After years of irregularities, lack of statistics, transparency, and policy implementation, the tea industry in the plain lands had collapsed. The government had been trying to support the tea industry in Panchagarh, but farmers had always been neglected. However, after the new Chairman’s arrival, a visible framework has emerged, and the results are now evident, as reported by tea farmers.
Furthermore, the tea industry of the plain lands, especially in the Kurtoa Valley, is expected to further develop, benefiting all those involved in the tea business. This will also lead to economic and social improvement for the farmer class, as hoped by all the stakeholders.
