Tea Auction Essay

10335 Words 42 Pages

1.1 Introduction
Tea, the most ancient beverage mankind has been enjoying, is still the most popular drink in the world. In India, it is grown in an area of 5.10 Lakh hectare. Since the first auction of Assam Tea made from indigenous plants held in London in 1839, tea plantation in India has been contributing immensely towards the socio economic development of the people of the tea growing regions of the country. Tea industry contributes substantially towards the national and state economy by way of enriching the foreign exchange reservoir and State exchequer besides employment. Today the major tea growing states are Assam, West Bengal, Tripura, Tamil Nadu, Kerala and Karnataka. It
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Till date it is considered as the most preferred mode of disposal of tea among the tea growers. In general an auction is a process of buying and selling goods or services by offering them up for bid, taking bids and then selling the item to the winning bidder. Economic theory states, “an auction may refer to any mechanism or set of trading rules for exchange”. The word “auction” is derived from the Latin ‘augere’ which means “to increase” or “augment”. History says; auctions have been a relatively uncommon way to negotiate the exchange of good and commodities. Prior to the 17th century the few auctions that were held were sporadic and …show more content…
This major industry of Assam has failed to act as harbinger of industrial growth in the state. The colonial exploitative tendencies, aloofness of the industry from the local people, outflow of profits from the tea industry of Assam to outside the state, deprivation of local people in employment, particularly in executive level and in awarding of supply, contracts, etc. and not investing in other industries of Assam were some of the factors identified for this.
2.5 Employment in Tea industry
Employment is an important aspect of the tea industry.
2.5.1 Employment of tea garden labors
Tea is a labor intensive industry and it plays a vital role in employment generation. It provides employment opportunity to the people in the backward areas of the country and the state of Assam, to some backward classes and also majority of the employment is to women.
The industry is required to supply fringe and real benefits to the workers in terms of subsidized food rations, free housing, medical treatment and education, etc. in their respective areas. These aspects are discussed in depth in Chapter V on tea labors in

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