Labour Cost Management: Role of Non-monetary Factors at Indian Tea Plantation Sector

Indian Tea Plantation Sector is Labour intensive. Labour cost is one of the important cost instigating factors in total cost of production in Indian Tea Sector. Optimizing labour cost by enhancing labour productivity is a challenging task, however; it is imminent in the existing scenario. Currently, Indian Tea Plantation sector is in doldrums' due to increasing cost of production and international competition. This paper on labour cost management explores the role of non-monetary factors in optimizing labour cost considering the dimensions of labour shortage and low productivity of labour. This study on south Indian Tea plantations identifies significant impact of non-monetary factors namely labour shortage and low productivity of laborer on labour cost. This situation is a setback and impacts on improving competency of the sector with mounting total cost of production.