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Tea : The Indian tea industry directly employs over 1 million people and indirectly supports around 10 million individuals, making it the second-largest producer after China. However, employment in this sector has been on a gradual decline since the 1950s and has now stagnated at around 1 million workers.

A 2020 ILO study titled “Wages and Working Conditions in the Tea Sector in India, Indonesia, and Vietnam” highlighted that employment opportunities are closely tied to education levels — an area where the Indian tea sector lags significantly. One positive development is that in 2021, the Tea Board of India lifted restrictions on estate expansion, allowing anyone to start tea plantations, thus creating new employment opportunities.

Moreover, the Tea Board of India has launched several initiatives, including gradual replantation, adoption of modern technology at subsidized rates, branding and sales promotion of Indian tea, and other financial support programs to revitalize the sector.

Coffee : The coffee sector faces numerous challenges, including climate change, pests, diseases, volatile prices, labor shortages, poor infrastructure, and limited marketing access. However, global coffee prices are expected to remain high, and Indian coffee production is projected to rise.

According to Coffee Board Secretary and CEO KG Jagadeesha, coffee production reached 3.52 lakh metric tonnes by March 2025 and is expected to increase further. Jagadeesha emphasized the need for value addition and premiumization of Indian coffee, noting that while India produces high-quality coffee, it is often sold as green beans, with value addition occurring elsewhere.

MJ Dinesh, Chairman of the Coffee Board of India, highlighted the need to strengthen the domestic market to protect growers against international price fluctuations. According to Coffee Board data, around 2 million people are directly employed in the coffee sector.

Rubber :  The rubber sector grapples with high labor costs, inter-national competition, climate change, technological gaps, and conflicts between growers and tire manufacturers. Kerala remains the primary rubber-producing state, with Tripura and parts of Northeast India also contributing. Employment growth in this sector has stagnated.

Spices : India is the world’s largest producer, consumer, and exporter of spices. In 2022, the domestic spice market was valued at $10.44 billion, projected to grow at a CAGR of 10.56% from 2025 to 2033. India’s spice exports were valued at $4.10 billion in 2021–22.

Growth drivers include increased demand from the food and beverage sector, greater medicinal use, and strong government support. However, the sector faces challenges such as price volatility and the lack of value addition.

Conclusion

The plantation sector in India faces common challenges across its sub-sectors: price volatility post-globalization, climate change, low value addition, lack of modernization, and labor issues. These persistent issues have limited the sector’s expansion and restricted employment growth.