Tea Association of India seeks continuation of subsidy schemes, clearance of dues

Guwahati, Jul 8 (PTI) The Tea Association of India (TAI) has urged the Assam government to continue its various subsidies and incentives for the sector in the next Budget, maintaining that these measures have helped the industry in the state. The planters' group also called for release of due, eligible subsidies and other payments to the tea companies. In a memorandum to the state government ahead of the annual Budget for 2026-27, the TAI requested continuation of the Assam Tea Industry Special Incentive Scheme (ATISIS) 2020. It said that the scheme has immensely benefited the tea industry by way of cost mitigation and sustaining Orthodox production. This has also led to an increase in Assam Orthodox production in 2025 by around 36 per cent over 2024. Raising certain concerns over the scheme, the TAI claimed that a large number of tea estates have not received subsidy amounts due for past financial years under ATISIS although all requisite documents have been submitted within the time frame and approved by all other departments such as banks, DICC and Tea Board. “Since boosting Orthodox production was a critical objective of ATISIS 2020 to increase exports, it is apprehended that the already achieved spurt in Orthodox production in Assam may be hampered if due subsidy is not received by the units,” it said. The Association has urged the government to consider and sanction all genuine claims submitted by the respective tea estates during each financial year. It asked for sufficient budgetary allocation during 2026-27 based on the claims submitted by the tea estates during the previous financial year, with a year-to-year increase. The planters’ group requested the extension of the abeyance of the levy of agricultural income tax on tea cultivation. Thanking the government for the exemption for the past three years from 2023, it sought extension of the waiver for the fiscal 2026-27. It said this waiver had provided much-needed relief to the tea industry at a time when the sector continues to face significant cost pressures, volatile market conditions and sustainability challenges. “The benefits of the tax waiver have primarily been utilised by tea estates to partially offset operational losses, meet statutory labour obligations, and sustain basic plantation maintenance,” the TAI added. It also sought extension of exemption from levy and payment of tax on green tea leaves for a further three years beyond December 31, 2026. For the Assam tea industry to remain viable, it is essential that the cost of production is rationalised and to that end, withdrawal of green leaf cess could play a vital role, the Association maintained. The TAI further requested the state government to provide reimbursement of power subsidy at the rate of Rs 2 per unit consumed for a period of five years by the tea manufacturing units (new as well as old units) of Assam. Pleading for allocation of sufficient budget for tea tourism projects, the TAI said that while the state government has provided limited financial assistance to selected tea estates, the present amount is inadequate to develop this sector on a sustainable and scalable basis. It has also sought granting of reimbursement of 100 per cent SGST paid on the finished product through debit in electronic cash ledger account as per existing provisions for at least five years. The TAI further asked for a subsidy at the rate of 50 per cent on capital cost for setting up effluent treatment plant in the manufacturing units as assistance for environmental compliance. It sought the continued assistance in the form of various existing schemes, which had been withdrawn, to upscale the productivity of land, labour and factory where the future of the industry lies. TAI has further urged the implementation of VB-GRAMG during the tea industry’s lean period from mid-December to mid-March so that the work force engaged by the estates can find proper jobs during the period. The planters’ body also sought the implementation of various schemes of the Agriculture department for the benefit of the tea industry and its workers. PTI SSG NN