Assam Budget Boosts Tea Industry With Tax Breaks and New Subsidies

Guwahati: Assam Finance Minister Jayanta Malla Baruah kicked off his first budget on July 10 with a plan to pump cash into the state's tea industry. Small tea growers get the biggest win. Their agricultural income tax exemption jumps from Rs 2.5 lakh to Rs 10 lakh.

Baruah stated the goal clearly. "To provide relief to small tea growers, I propose to enhance the agricultural income tax exemption threshold from Rs 2.5 lakh to Rs 10 lakh of annual agricultural income," he said. Larger growers will see agricultural income tax return by April 2026, with that money earmarked for community welfare.

Production subsidies for orthodox and speciality teas are climbing 50 percent to Rs 15 per kg. This package now covers premium Matcha tea as well. Officials hope this move builds on the 80 percent growth in orthodox tea output seen over the last four years. Premium Matcha has already fetched prices near Rs 3,000 per kg at the Guwahati Tea Auction Centre.

Export-oriented premium CTC tea is also getting a lift. The state will offer a Rs 3 per kg incentive for tea sent through official export channels. The government plans to keep the Assam Tea Industries Special Incentives Scheme running to back these efforts.

Beyond the crops, the budget targets the workers. Tea garden hospitals are in line for equipment upgrades, more medicine, and better staffing. Estate owners remain responsible for daily hospital support.