Assam revises tea incentives, gives Guwahati auction centre a key role in export push
Assam has revised its tea incentives scheme to widen export support and include GTAC auction sales. The changes raise subsidies, add Matcha Tea and are expected to strengthen organised auctions and overseas competitiveness.
Representative Image- Exporters get Rs 3 per kg for Single Origin Assam Quality CTC
- The incentive aims to ease transport, container and terminal cost pressures
- Orthodox and Speciality Tea subsidy rises to Rs 15 per kg
The Assam government has expanded incentives for the state's tea industry, with the revised Assam Tea Industries Special Incentives Scheme (ATISIS), 2020, giving a fresh boost to exports and recognising tea sold through the Guwahati Tea Auction Centre (GTAC) under the export incentive framework.
The revised scheme, notified on September 18, provides an incentive of Rs 3 per kg for exported Single Origin Assam Quality CTC Tea. The support is intended to offset higher inland transportation, container repositioning and terminal handling costs faced by tea producers and exporters in Assam.
A significant change is the inclusion of CTC tea sold through the GTAC within the definition of "Quality CTC Tea" for claiming the export incentive. The move directly links Assam's organised auction system with the state's export support mechanism and is expected to encourage greater participation in the Guwahati auction.
The revised policy also increases the production subsidy for Orthodox and Speciality Tea from Rs 10 to Rs 15 per kg. The annual ceiling for the subsidy has been raised to Rs 1 crore per unit or garden.
Matcha Tea has been brought under the scheme for the first time, while the working capital interest subvention has been increased from Rs 15 lakh to Rs 20 lakh. The revised scheme will remain in force until March 31, 2031.
The changes follow the Assam government's tea-sector proposals in the 2026-27 Budget, which included a Rs 3 per kg incentive for export-oriented premium Assam CTC Tea and increased support for Orthodox and Speciality Tea.
Dinesh Bihani, secretary of the Guwahati Tea Auction Buyers Association, said the recognition of GTAC auction sales under the export incentive could help strengthen the organised auction channel and Assam's position in export markets.
"For Guwahati, one of the world's largest CTC tea auction centres, the recognition of GTAC auction sales under the new export incentive is expected to encourage greater participation in the organised auction channel, support Assam's export competitiveness and further strengthen GTAC's standing in domestic and international markets," Bihani said.
The tea trade has welcomed the revised policy and also acknowledged the efforts of the GTAC chairman towards strengthening the auction platform.
The updated incentive structure comes as Assam's tea industry faces rising logistics costs and seeks greater support to improve its competitiveness in overseas markets. The latest notification expands the range of support available to different segments of the industry while extending the policy period to 2031.
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