Tea industry welcomes Assam Budget's subsidy and tax relief measures

Tea planters, traders and industry associations have welcomed the subsidy, incentive and tax relief measures announced in the Assam Budget 2026–27, saying the proposals will strengthen the state's tea industry, improve global competitiveness and support the welfare of tea garden workers.

Presenting his maiden budget, Finance Minister Jayanta Malla Baruah announced a Rs 3 per kg subsidy for export-oriented and premium-quality Assam CTC tea, marking the first such incentive for the sector. He also increased the production subsidy for orthodox and speciality tea from Rs 10 per kg to Rs 15 per kg, while including premium Matcha tea under the scheme.

To provide relief to small tea growers, the government proposed raising the agricultural income tax exemption threshold from Rs 2.5 lakh to Rs 10 lakh annually. At the same time, agricultural income tax will be restored for larger assessees from April 1, 2026, with the additional revenue earmarked for the welfare of tea garden communities.

The Guwahati Tea Auction Buyers Association (GTABA) described the export subsidy as a landmark initiative that would enhance Assam tea's competitiveness in international markets and improve price realisation across the value chain.

The Tea Association of India (TAI) also welcomed the budget, stating that the proposals would provide a significant boost to the industry. The association praised the strengthening of the Assam Tea Industries Special Incentives Scheme (ATISIS), the reduction of VAT on piped natural gas, and initiatives aimed at improving healthcare, tea tourism and infrastructure in tea garden areas.

Industry representatives also welcomed measures to strengthen tea garden hospitals, continue the Rs 15,000 wage compensation scheme for pregnant women in tea estates, and improve housing, roads, schools and community infrastructure for tea garden workers, calling the budget one of the most progressive for Assam's tea sector in recent years.