Tea industry gets Rs 664 Cr push for modernisation, replanting & global expansion

Guwahati, Oct 5: The Union Ministry of Commerce and Industry has approved an overall budget of Rs 664.09 crore for overall protection, growth and sustenance of the tea industry.

To be released under the Tea Board's "Tea Development & Promotion Scheme", the major components of the scheme include plantation development and quality upgrading, tea promotion and market support, technological intervention, research and development and welfare and capacity building measures.

The Tea Board will facilitate the stakeholders who play a pivotal role in production, manufacturing, promotion and marketing, research, etc., of tea in availing assistance.

"It is envisaged that right from the field to the cup, every aspect of the tea industry would be touched upon and lead to holistic development," a statement said. The duration of the scheme is from October 3 to March 31, 2026.

Large tea estates (over 10.12 hectares) will receive support for replanting efforts, while entrepreneurs, small tea growers, and self-help groups (SHGs) can access assistance for establishing nurseries with recommended cultivars.

SHGs and Farmer Producer Organisations (FPOs) will also benefit from incentives aimed at boosting productivity and quality. In addition, these groups will be supported in setting up mini-tea units for producing orthodox, green, and specialty teas. Registered tea associations and companies stand to gain from global and domestic branding campaigns, with a special emphasis on increasing international market share.

The scheme also emphasises research, soil testing, organic certification, consumer awareness, and capacity building, with financial support for educational programmes, welfare initiatives for tea garden workers, and technological upgrades for tea testing laboratories.

"Strengthening the tea industry through this holistic approach is expected to boost per capita consumption of tea domestically and contribute to better price realisation and increasing India's share in tea export markets as a step towards making the industry sustainable," the statement added.

Earlier in May, the Tea Board of India raised concerns of the sharp decline in production rate in key tea-producing regions, particularly Assam with a 40% drop. Reports stated that the decline is due to the adverse weather conditions.

Furthermore, in July, there had been a sharp rise in tea prices owing to heatwaves and floods during the peak harvesting season. Former chairman of India’s Tea Board stated that excessive in May, followed by ongoing flooding had reduced output.

-By Staff Reporter