Bangladesh's tea industry, a key economic contributor and employer, is at a pivotal turning point. As the world's 10th largest tea producer and ninth largest exporter, it supports over 350,000 people, including 89,812 registered workers and 19,592 casual labourers. However, rising production costs, climate change impacts, low wages, poor labour rights, inadequate working conditions and governance inefficiencies pose serious challenges to its sustainability.
These concerns were the focus of the roundtable discussion, "Bangladesh Tea Industry: Current Challenges and Future Pathways," on Saturday in Dhaka. Organized by Dhaka Tribune in collaboration with Oxfam in Bangladesh, co-funded by the European Union, and co-hosted by Empowering Women Through Civil Society Actors (EWCSA), project partners Procheshta, Ethnic Community Development Organization (ECDO), Reliant Women Development Organization (RWDO) and Breaking the Silence (BTS) recently, the event gathered a diversity of stakeholders. Moderated by Md Sariful Islam, head of influencing, communications, advocacy and media at Oxfam in Bangladesh, the dialogue provided a platform for government representatives, labour union leaders, industry stakeholders, development organizations and international experts to address issues and explore solutions.
The keynote by Dr Meghna Guhathakurta shed light on the grim realities tea workers face: a staggering 93% lack formal contracts or appointment letters, leaving them vulnerable to exploitation; many workers, 69% of whom do not receive payslips, are deprived of transparency in wage distribution; and 76% lack designated snack breaks during long work hours. She said health and safety risks also loom large, with 63% of workers exposed to occupational hazards, while sanitation and childcare facilities remain inadequate.
According to her presentation, although tea production has increased, export volumes have declined, and local market prices fail to offset rising production costs. Many estates, including those under government management, operate at break-even or have closed. The lack of value addition, driven by limited technological innovation and quality improvements, further constrains revenue potential and global competitiveness.
The roundtable identified several transformative opportunities. Renewable energy solutions, such as solar power, were proposed to mitigate disruptions caused by unreliable electricity. Technological advancements in processing and quality control could elevate Bangladeshi tea's global standing. Initiatives like the Global Fair Pay Charter offer a pathway to improving wages and enhancing export readiness. Additionally, innovative ventures like tea garden-based eco-tourism and cooperative agricultural models present avenues for diversifying revenue streams, fostering community development and engaging youth in meaningful employment.
The discussion reflected diverse perspectives. Government representatives acknowledged the sector's critical challenges and opportunities. Owners expressed concern about rising operational costs and declining global demand, advocating policy support and technological upgrades to sustain the sector. The Labour Reform Commission stressed the importance of governance reforms and union strengthening to protect workers' rights.
Workers and union leaders urged greater transparency and accountability alongside immediate improvements in wages, amenities, and health and safety standards. International experts highlighted Bangladesh's opportunity to lead globally in sustainable tea production by embracing renewable energy, enhancing quality and creating value-added products. Development organizations led by Oxfam emphasized the importance of multi-sector collaboration and introduced the "Model Tea Estates" concept as a benchmark for equitable, sustainable and community-driven tea production.
The history of tea gardens in the country is over a century old. However, heritage is holding back workers and owners from adapting to the current world in some cases.
Practices such as paying low wages and discrimination in labour and disaster law are leaving workers behind in the colonial era. Owners are also hurting as tea prices are decreasing in the local market while the production cost is getting higher.
Current challenges
Bangladesh’s tea industry plays a crucial socio-economic role, particularly in women's employment, while contributing to national production and exports. With 167 tea estates and a large number of female workers, this sector – essential to women’s economic empowerment – faces multiple challenges.
Alongside low wages, tea workers face challenges in terms of rights and long-term prospects. While tea production has increased, concerns remain about declining quality and stagnant prices due to internal and external challenges.
Comments
Syed Sultan Uddin Ahmed
Chairman of the Labour Reform Commision
Firstly, the tea sector should be announced as agro. Also, we should think about initiating a tea commission again. Despite 150 years of history, we have yet to achieve the milestone where tea is regarded as a souvenir from Bangladesh.
AHM Shafiquzzaman
Secretary of the Ministry of Labour and Employment
If supply and demand do not match, we will not get the expected price. The wage increase is not enough. I will try to bring funds to develop the labourers in tea gardens. Funding can increase their protection.
The sector can be privatized to ensure a social safety net for workers. A model tea garden should also be developed which could be replicated if it is successful.
Ponkoj Kondo
Vice President of Bangladesh Cha Sramik Union
A tea garden worker needs to vacate their allocated house after retirement. To make a nation self-sufficient, housing is very important, and we do not have that. We want a discrimination-free Bangladesh, we do not want anyone to be left behind. If all the gardens shut down, we do not know how they will survive.
Poresh Kalindi
Vice President of Bangladesh Cha Sramik Union
Government jobs require some papers, which we do not have. Thus, we have to go back to the tea garden. Some of us go back to the garden after clearing SSC or HSC exams. Then they just become unemployed, doing drugs, destroying lives.
Kamran Tanvirur Rahman
Chairman of Bangladesh Tea Association
Unless we can restore the demand-supply equilibrium we will not be able to get decent prices. Till 2018, the industry made a decent profit. Which was a win-win for owners and workers. From 2019 to 2023 we are running at losses.
Ashish Damle
Country Director of Oxfam in Bangladesh
I want to thank everyone for joining the discussion. The discussion adressed the current challenges and can pave the way for future pathways.
Sheikh Aliur Rahman
Group Chairman of London Tea Exchange
The tea industry resonates with the empire. It is a sad thing. It was not designed for people. It was not designed for protecting human rights. It was designed for slavery. We inherited this. That is what we inherited. Thus, there are issues of culture. The pricing of tea is dictated by a syndicate. It is never going to change, and the owners and workers are suffering,
Workers are not asking for a big villa or bungalow, they just want two meals a day and their dignity. It is a sad thing.
Shaheen Anam
Executive Director of Manusher Jonno Foundation
They need to diversify their skills. This is a violation of the right to choose any profession. They are malnourished. They carry a burden and walk far. It requires a transformational change from all the stakeholders to make change.
Lauran Paula Bush
Chief of Staff at London Tea Exchange
The sad thing is that the situation in Bangladesh is not unique. All tea-production countries are dealing with the same issue. There is an opportunity for Bangladesh to pave the way for other countries. Sustainable business can be a solution to the problem.
Meghna Guhathakurta
Executive Director of Research Initiatives, Bangladesh
There are 89,812 Registered workers and 19,592 casual workers working in the tea production industry. Wage is an important debate among tea garden workers. A survey said among the health and safety aspects, they do not have enough latrines. Some 63% of their health is at risk as it is an occupational hazard.
Shomita Begum Meera
Founder and Executive Director of RWDO
We have to work hard in the sun. We do not get a salary for four months. Some of the workers even come right after they give birth.
Mahmuda Sultana
Program Director at Oxfam
We need to ensure multispectral programming for the development of the living conditions of tea garden workers. And we have to look at the functionality as well. We also need to focus on behavioural change.
Radhika Goyala
Joint Secretary of Amra Parbo Nari o Kishori Network
We are working with women and adolescent females’ tea workers to ensure our rights. In some cases, we were successful in ensuring allowance for elderly people or the government stipend.
Zafar Sobhan
Editor of Dhaka Tribune
We want to look at the current challenges and future paths. We can really put right and support the tea workers in this discussion, and all the stakeholders are here. We have a golden opportunity.
M Tanjim Hasan Khan
Resource Mobilization Associate at Centre for Policy Dialogue
The law allows four months of maternity leave, but many companies do not comply with it. The living standards and education are not adequate. If we think long-term, we need to do a major overhaul otherwise the industry will be extinct.
Md Madhul Kabir Chowdhury
Acting deputy director (trade) and Senior Marketing Officer at Bangladesh Tea Board
We are losing money on gardens. Our cost of production does not help in the auction. Some of the gardens have been closed. If we can export more, internal consumption will grow with that.
Roksana Sultana
Executive Director of Breaking the Silence
We think that economic empowerment is a key to women's empowerment. But we cannot say that they are empowered. We need to look at their mental health as well. If we can provide them with a platform then they can raise their demands.
Ali Naki Khan
Director of Prochesta
Future days are filled with opportunities. The reality is that managers are untrained. The tea production industry is different from other industries. We need to reform it differently.
Recommendations:
- Revise and harmonize labour and dastur laws to eliminate discriminatory provisions that marginalize tea workers. Ensure that laws are aligned with international labour standards to promote equity and justice in the workplace.
- Empower women tea workers to meaningfully participate in formulating, reviewing and implementing labour laws and policies.
- Design and implement targeted programs to advance women’s leadership within unions and ensure their active and meaningful participation in union practices.
- Promote business practices that align with human rights due diligence, ensuring fair treatment, decent working conditions and sustainability across the supply chain.
- Implement systematic mechanisms for collecting and analyzing data on tea workers’ rights, wages and working conditions.
- Focus on enhancing export readiness by improving tea quality.
- Promote innovations in production, such as renewable energy and technological advancements, to improve efficiency and quality. Explore alternative revenue streams, such as eco-tourism and cooperative farming models.
