Assam Budget: Planters, traders say subsidy, incentive proposals to boost tea sector

Guwahati, Jul 11 (PTI) Several associations in the tea sector, including those of planters and traders, have welcomed the subsidy, incentive and tax relief announcements in the Assam Budget 2026-27, noting that such measures will boost the industry. The measures proposed in the budget, which was tabled in the assembly on Friday, will help the tea industry retain its global market share and strengthen socio-economic development of workers, they said. State Finance Minister Jayanta Malla Baruah, in his maiden budget, announced a subsidy of Rs 3 per kg for export-oriented and premium-quality Assam CTC tea for the first time. In case of orthodox and speciality tea, the production subsidy will be enhanced from Rs 10 per kg to Rs 15 per kg, with premium Matcha tea to be added to these categories. To provide relief to small tea growers, the minister proposed to enhance the agricultural income tax exemption threshold from Rs 2.5 lakh to Rs 10 lakh of annual agricultural income. At the same time, the tax will be restored for larger assessees with effect from April 1, 2026, and the additional revenue generated shall be dedicated exclusively to the welfare of tea garden communities, Baruah said. The finance minister also said that the government will strengthen support to tea growers through Assam Tea Industries Special Incentives Scheme (ATISIS), besides other measures like enhancing healthcare facilities and promoting tea tourism. The Guwahati Tea Auction Buyers Association (GTABA) described the decision to introduce the Rs 3 per kg export subsidy for premium CTC tea as a landmark initiative. GTABA secretary Dinesh Bihani said this is the first dedicated export incentive for premium Assam CTC tea, announced in the state budget and is expected to enhance the competitiveness of Assam tea in international markets. “It will help exporters remain competitive in the global market at a time when the industry is facing increasing competition and rising logistics costs. It will also improve price realisation across the value chain,” he said. Bihani also said that the Guwahati Tea Auction Centre (GTAC), India's largest CTC tea auction house, is expected to benefit significantly from this initiative. Planters’ body Tea Association of India (TAI) said the budget has provided a fillip to the tea industry in all spheres. “The tea sector has been a backbone of the state economy and an extremely important sector from the employment generation perspective. The hon’ble finance minister has made several proposals for the tea industry and the workforce associated with it in his budget proposals,” TAI secretary general PK Bhattacharjee said. Lauding the subsidies for both orthodox and premium CTC tea, he added that the strengthening of the ATISIS 2020 will help the industry further. The lowering of VAT from 14.5 per cent to 5 per cent on piped natural gas shall reduce the cost of production of the tea estates connected with piped natural gas, he said. Bhattacharjee said the proposal to launch the Assam Tea and Golf Trail, a unique tourism initiative integrating Assam's globally renowned tea estates with its golf courses, will create a world-class experiential tourism circuit. He further said that the proposal to strengthen tea garden hospitals by improving infrastructure, diagnostics, medicines, medical equipment, and deployment of dedicated doctors and healthcare personnel, along with the proposal to strengthen last-mile healthcare delivery, are encouraging. Continuing compensation of Rs 15,000 under the Wage Compensation Scheme for pregnant women of tea garden areas of Assam shall ensure better maternal care and nutrition, the TAI official said. He also welcomed proposals for social welfare activities inside the tea gardens such as construction of Mahaprabhu Jagannath Community Hall-cum-Skill Centres, construction of houses under PMAY-G, model high schools in tea gardens, concrete roads in labour lines, etc. “TAI, along with the entire Tea industry. hereby lauds the government of Assam for one of the most progressive and forward-looking budgets for the tea industry in Assam. The combined impact of all the measures should augur well for the industry both from its existential and viable aspects,” Bhattacharjee added. PTI SSG SSG BDC