Bengal Land and Land Reforms Department Revises Compensation Rates for Tea Plantations in Land Acquisition

In the event that any tea estates are reclaimed by the state for government projects, the Bengal Land and Land Reforms Department has updated the rates of compensation for tea bushes and shade trees—trees that are periodically planted in tea plantations to offer shade for tea bushes.

According to reports, the increased prices will take effect retroactively on January 1, 2023.

The move has been well received by those connected to the state's tea sector. According to them, the tariffs were last changed in 2016.

The state land and land reforms, refugee, relief, and rehabilitation department's principal secretary, Smaraki Mahapatra, announced on November 21 that the rates had been changed based on suggestions from the Tea Board of India and discussions with the state finance and forest departments.

"The new amount of compensation for the plains is Rs 331 per bush, up from Rs 135 before. The price per shrub in the hills has increased from Rs 155 to Rs 354. The amount of compensation for each shade tree has increased to Rs 6,000 from Rs 4,000. According to a department source, the higher charges will be applied to any land purchases of this kind that have been granted on or after January 1, 2023.

In order to build plantations, factories, worker housing, and other infrastructure, tea businesses lease property from the state government. The state has the right to reclaim the land from the tea firms in the event of government initiatives.

For instance, the state reclaimed land that had been leased to a tea farm in Bagdogra, which is outside of Siliguri, and gave it to the Airports Authority of India so that Bagdogra airport could be expanded. The tea firm that owns the garden should be paid since the site contained tea plants and shade trees. The rates set out by the state are used to determine this compensation. These have now been updated, a seasoned Siliguri-based planter clarified.

The announcement also said that in the event that land is seized for projects such as airports, border outposts (of the central paramilitary forces, such as the BSF and the SSB), integrated checkposts, national and state roadways, or border outposts, the rates will be taken into account to determine the compensation.

Representatives from tea growers groups said that the tea board had formed a committee because the state had asked for the board's opinion on the matter. The committee discussed the issue and received feedback from a range of sources.

"As the loss of tea bushes impinges upon the economic returns of a tea estate, we stressed the urgency to revise the compensation rates with the greater costs involved in carrying out agricultural practices," stated Prabir Bhattacharjee, secretary-general of the Tea Association of India, one of the members of the committee established by the tea board.