Assam in talks with tea bodies on wage hike; decision likely this year: Ajanta Neog

The Assam government is in discussions with tea associations to raise the daily wages of tea garden workers, with a decision likely within the year, Finance Minister Ajanta Neog said on February 17.

While presenting the interim Budget for 2026–27, Neog stated that the government aims to make orthodox tea account for half of Assam’s total tea exports. She emphasised that the prosperity of the tea industry must directly benefit tea garden workers and confirmed that consultations are underway to enhance wages during the current year.

The Assam Assembly was informed that the minimum daily wage for tea garden workers was last revised to ₹18 in October 2023, with rates in the Brahmaputra Valley at ₹250 and in the Barak Valley at ₹228.

Neog highlighted that Assam exported 40 million kilograms of orthodox tea in FY 2025–26, calling it a significant milestone. To further strengthen the sector, the government has increased production subsidies from ₹10 to ₹15 per kilogram and committed to raising them further to capture global markets currently dominated by India’s premium tea segments.

Under the Assam Tea Industrial Special Incentives Scheme (ATSIS), ₹392 crore has been disbursed to 1,914 tea gardens to promote orthodox tea production, the minister said.

Addressing land rights issues, Neog noted that for generations, tea garden workers were treated as “informal inhabitants” of the land they tilled. However, with the passage of the Assam Fixation of Ceiling on Land Holdings (Amendment) Act, 2025, the government intends to grant permanent land rights to over 3.5 lakh families across more than 800 tea estates in the state.

Prime Minister Narendra Modi is expected to formally launch the distribution of land pattas in March, she added. The move will also enable eligible tea garden workers to avail themselves of benefits under PMAY-G, improving their access to housing schemes.

Meanwhile, the government has announced a one-time financial assistance of ₹5,000 to over six lakh tea garden workers and employees, with a total outlay of ₹342 crore, to commemorate 200 years of Assam Tea.

In addition, 1.16 lakh pregnant women in tea gardens have received ₹15,000 each under the Tea Garden Wage Compensation Scheme, amounting to approximately ₹120 crore. The government has also constructed 118 model high schools at a cost of ₹210 crore in tea garden areas and built 100 crèches.

Neog further stated that a new skill development centre worth ₹500 crore, named after Swahid Maniram Dewan, will be established to serve as a hub for cultural and vocational activities in tea gardens.

The announcements signal the government’s dual focus on boosting tea production and strengthening welfare measures for tea garden communities across Assam.