Tea estates fear bankrupcy after wage hikes in India
Recent wage hikes agreed by tea estate managers and workers are putting a strain on many tea estates in the Dooars region in West Bengal, India. As many as 40 plantation owners are looking to offload their farms, because they cannot cope with the increased costs of producing tea. The new wage deal, which saw worker compensation increase by 27% from November 2011, has pushed many tea estates into the red and many of them have been losing money since. The other major factor is the stable auction price of tea leaves, which has not budged since 2010, despite increased production costs. The companies are now calling on the local government to shoulder some of the costs associated with running the estates, that include expenses like accommodation, subsidized food grains, health care and educational facilities.