The plantation industry in south India is in a state of deep economic crisis. There are secular and cyclical factors that account for the present state of the industry, although the former appears to be the more dominant. This is particularly true of the large plantation holdings of tea in south India, which unlike the small peasant tea holdings are unable to withstand the crisis. This essay argues for a major restructuring of the plantation sector, with special reference to the tea plantations in Tamil Nadu, through a process of labour empowerment based on contract farming.
