Economy of Assam (Assam Tea)

Macro-economic trend:

                  Economy of Assam today represents a unique juxtaposition of backwardness amidst plenty. Growth rate of Assam’s income has not kept pace with that of India’s during the Post-British Era; differences increased rapidly since 1970s. While the Indian economy grew at 6 percent per annum over the period of 1981 to 2000, the same of Assam’s grew only by 3.3 percent. In the Sixth Plan period Assam experienced a negative growth rate of 3.78 percent against a growth rate of 6 percent of India’s. In the post-liberalised era (after 1991), the gaps between growth rates of Assam’s and India’s economy widened further.

                  In the current decade, according to recent analysis, Assam’s economy is showing signs of improvement. In the year 2001-2002, the economy grew in 1993-94 constant prices at 4.5 percent, falling to 3.4 percent in the next financial year. During 2003-2004 and 2004-2005, in the same constant prices, the economy grew more satisfactorily at 5.5 and 5.3 percent respectively. The advanced estimates placed the growth rate for the year 2005-2006 at above 6 percent.

                  In the 1950s, soon after the independence, per capita income in Assam was little higher than that in India; it is much lower today. In the year 2000-2001, per capita income in Assam was INR 6,157 at constant prices (1993-94) and INR 10,198 at current prices, which is almost 40 percent lower than that in India. According to the recent estimates, per capita income in Assam at 1993-94 constant prices has reached INR 6520 in 2003-2004 and INR 6756 in 2004-2005, which is still much lower than the same of India.

Agriculture:

                   Agriculture accounts for more than a third of Assam’s income and employs 69 percent of total workforce. Assam's biggest contribution to the world is its tea. Assam produces some of the finest and most expensive teas in the world. Other than the Chinese tea variety Camellia sinensis, Assam is the only region in the world that has its own variety of tea, called Camellia assamica. Assam tea is grown at elevations near sea level, giving it a malty sweetness and an earthy flavor, as opposed to the more floral aroma of highland (e.g. Darjeeling, Taiwanese) teas. Assam also accounts for fair share of India’s production of rice, rapeseed, mustard, jute, potato, sweet potato, banana, papaya, areca nut and turmeric. Assam is also a home of large varieties of citrus fruits, leaf vegetables, vegetables, useful grasses, herbs, spices, etc, which are mostly subsistence crops.

                   Assam’s agriculture has yet to experience modernisation in a real sense and is lagging behind. With implications to food security, per capita food grain production has declined in past five decades. On the other hand, although productivity of crops increased marginally, still these are much lower in comparison to highly productive regions. For instance, yield of rice, which is staple food of Assam, was just 1531 kg per hectare against India’s 1927 kg per hectare in 2000-200 (which itself is much lower than Egypt’s 9283, USA’s 7279, South Korea’s 6838, Japan’s 6635 and China’s 6131 kg per hectare in 2001). On the other hand, although having a strong domestic demand, 1.5 million hectares of inland water bodies and numerous rivers and streams and 165 varieties of fishes, fishing is still in its traditional form and production is not self-sufficient.

Industry:
                   Apart from tea and petroleum refineries, Assam has few industries of significance. Industrial development is inhibited by its physical and political isolation from neighbouring countries such as Myanmar, China and Bangladesh and from the other growing South East Asian economies. The region is landlocked and situated in the eastern most periphery of India and is linked to the mainland of India by a flood and cyclone prone narrow corridor with weak transportation infrastructure. The international airport in Guwahati is yet to find airlines providing better direct international flights. The Brahmaputra suitable for navigation does not have sufficient infrastructure for international trade and success of such a navigable trade route will be dependent on proper channel maintenance, and diplomatic and trade relationships with Bangladesh.
Assam is a major producer of crude oil and natural gas in India. Assam is the second place in the world (after Titusville in the United States) where petroleum was discovered. Asia’s first successful mechanically drilled oil well was drilled in Makum (Assam) way back in 1867. The second oldest oil well in the world still produces crude oil. Most of the oilfields of Assam are located in the Upper Assam region of the Brahmaputra Valley. Assam has four oil refineries located at Guwahati, Digboi, Numaligarh and Bongaigaon with a total capacity of 7 MMTPA (Million Metric Tonnes per annum). Bongaigaon Refinery and Petrochemicals is the only S&P CNX 500 conglomerate with corporate office in Assam.
                  Although having a poor overall industrial performance, several other industries have nevertheless been started, including a chemical fertiliser plan at Namrup, petrochemical industries at Namrup and Bongaigaon, paper mills at Jagiroad, Panchgram and Jogighopa, sugar mills at Barua Bamun Gaon, Chargola, Kampur, cement plant at Bokajan, cosmetics plant (HLL) at Doom Dooma, etc. Moreover, there are other industries such as jute mill, textile and yarn mills, silk mill, etc. Unfortunately many of these industries are facing loss and closer due to lack of infrastructure and improper management practices.

Assam Tea:
                Assam (Assamese: অসম, Hindi: आसाम, and also Hindi: असम) is a black tea named after the region of its production, Assam, in India. Assam tea (Assamese: অসমীয়া চাহ, Hindi: असमिया चाय or Hindi: आसामी चाय or Hindi: असमी चाय) is manufactured specifically from the plant Camellia sinensis var. assamica (Masters). This tea, most of which is grown at or near sea level, is known for its body, briskness, malty flavor, and strong, bright color. Assam teas, or blends containing Assam, are often sold as "breakfast" teas. English Breakfast tea, Irish Breakfast tea, and Scottish Breakfast Tea are common generic names.
                    The state of Assam is the world's largest tea-growing region, lying on either side of the Brahmaputra River, and bordering Bangladesh and Burma (Myanmar). This part of India experiences high precipitation; during the monsoon period as much as 10 to 12 inches (250-300 mm) of rain per day. The daytime temperature rises to about 103F (40 °C), creating greenhouse-like conditions of extreme humidity and heat. This tropical climate contributes to Assam's unique malty taste, a feature for which this tea is well known.
                  Though "Assam" generally denotes the distinctive black teas from Assam, the region produces smaller quantities of green and white teas as well with their own distinctive characteristics.
Historically, Assam is the second commercial tea production region after southern China. Southern China and Assam are the only two regions in the world with native tea plants. Assam tea revolutionized tea drinking habits in the 19th century since the tea, produced from a different variety of the tea plant, yielded a different kind of tea.

 The Myth of Discovery:

                 The recurring colonial myth of "discovery" informs the history of the Assam tea bush and is attributed to one Robert Bruce, a Scottish adventurer, who apparently encountered it in the year 1823. Bruce reportedly found the plant growing "wild" in Assam while trading in the region. He noticed local tribesmen (the Singhpos) brewing tea from the leaves of the bush and arranged with the tribal chiefs to provide him with samples of the leaves and seeds, which he planned to have scientifically examined. Robert Bruce died shortly thereafter, without having seen the plant properly classified. It was not until the early 1830s that Robert’s brother, Charles, arranged for a few leaves from the Assam tea bush to be sent to the botanical gardens in Calcutta for proper examination. There, the plant was finally identified as a variety of tea, or Camellia sinensis

Production:

                  The cultivation and production of Assam tea in the first two decades (1840-1860) was monopolised by the Assam Company which operated in districts of Upper Assam and through the labour of the local Kachari labour. The success of the company and the changes in colonial policy of offering land to the tea planters (Fee simple rules) led to period of boom and expansion in the Assam tea industry in the early 1860s but it could not necessarily be translated into a dramatic shift in production (from China to Assam) due to the "makeshift" nature of plantations, poor conditions of life on plantation (huge rates of mortality and desertion) and also at times the presence of pure speculative capital with no interest in tea production.

 Geography:

 The tea plant (Camellia sinensis var. assamica) is grown in the lowlands of Assam, unlike Darjeelings and Nilgiris which are grown in the highlands.The Assam tea bush grows in a lowland region, in the valley of the Brahmaputra River, an area of clay soil rich with the nutrients of the floodplain. The climate varies between a cool, arid winter and a hot, humid rainy season—conditions ideal for it. Because of its lengthy growing season and generous rainfall, Assam is one of the most prolific tea-producing regions in the world. Each year, the tea estates of Assam collectively yield approximately 1.5 million pounds (680,400 kg) of tea.

               Assam tea is generally harvested twice, in a “first flush” and a “second flush.” The first flush is picked during late March. The second flush, harvested later, is the more prized “tippy tea,” named thus for the gold tips that appear on the leaves. This second flush, tippy tea, is sweeter and more full-bodied and is generally considered superior to the first flush tea. The leaves of the Assam tea bush are dark green and glossy and fairly wide compared to those of the Chinese tea plant. The bush produces delicate white blossoms.