The emergence of small tea growers is a relatively new phenomenon in Assam. Owners of small land plots mainly located in the eastern part of the state have taken to small tea cultivation in a big way in the last three–four decades. The nature of production of the sector is informal. The unemployed youth and farmers of other unprofitable crops, who have taken to small-scale tea cultivation, are likely to be exploited by agents and owners of tea factories who buy raw tea leaves. Primary survey data are collected from five districts of eastern and central Assam to investigate the monopsonistic exploitation of small tea growers by tea leaf buyers.