The market prices for tea have shown strong downward trends over the past five years.

After water, tea is the most popular drink in the world with 15,000 cups drunk per second. Like cocoa, sugar, and coffee, tea is a product of the colonial times, and plantations in India, Sri Lanka, and East Africa were originally established during the British Empire. In these countries, tea still represents an important export. Tea is usually grown on plantations and less typically by small scale farmer cooperatives.

Tea is an extremely diverse product, with grades and types of tea ranging from the fine-grade mass-market teas that are used in tea-bags to high quality specialty leaf and organic teas. The market prices for tea vary hugely, not just according to grade and type, but also depending on what production methods are used and the tea's geographical origin. Generally market prices for tea have dropped markedly over the past five years. Faced with global oversupply of tea, producers in many regions are now selling much of their product at below the cost of production.

Poor labour conditions for tea workers in plantations

In this context of low market prices, the labour conditions of tea workers in plantations are also deteriorating. The plight of tea plantation workers is a well known issue in many producing countries like India, Sri Lanka and Kenya.

Plantation workers often earn a pitiful living, below legal minimum wages. Living on the estates they tend to be dependent on estate owners for most of their basic needs.

Plantation workers often earn pitiful living, below legal minimum wages. They are heavily dependent on estate owners for most of their basic needs, such as healthcare, housing, primary education for their children and water access. In an attempt to cut costs basic needs are often not properly met, leaving workers and their children little alternative but to continue the cycle of dependency and vulnerability.

A small but increasing number of tea companies are getting their estates Fairtrade certified to ensure growers and workers are treated more fairly and receive decent wages at least in line with legal minimum wages. 

Tea is mainly grown on plantations rather than by small scale farmer cooperatives. Fairtrade has established standards in tea production for both plantations and small farmer organizations.

Standards for Tea Plantations:

Fairtrade standards for tea ensure that:

• A committee called Joint Body, composed of workers’ representatives and representatives of the management, is made responsible for the management of the Fairtrade Premium money. The Premium should not be used to cover ongoing operating expenses, but rather to improve working conditions and for development projects that can benefit the whole community.
• Forced labour and child labour of children under 15 years old is prohibited. Children aged 15 and above cannot do work if it could compromise their health or education.
• Workers have a right to establish or join an independent union, elect their advisors and design their own programmes.
• Salaries should be equal or higher than the regional average or than the minimum wage in effect.
• Health and safety measures should be established in order to avoid work injuries.

To find out more about what Fairtrade standards for tea plantations require, you can read the full standard.

Standards for small farmers¨tea organizations:

• Profits generated by Fairtrade sales should be equally distributed among producer members.
• All members have a voice in the decision-making process and in the group organization.
• Small producer organizations should manage the Fairtrade Premium democratically and reinvest it according to community needs.

You can read the full Fairtrade standards for small producer organizations under:

You can read a case study of Fairtrade tea producers on the Fairtrade Foundation website.

To find out which tea producer organizations are currently Fairtrade certified, you can check the database available on the FLO-CERT website.

If you’re interested in selling Fairtrade tea in your country, see our information about selling Fairtrade.

If you want to find out what products are available in your country, visit the website of your national Fairtrade organization.