Photo Courtesy: India Today Group
Guwahati: Assam Finance Minister Jayanta Malla Baruah just unveiled a budget that puts real money back into the tea sector. Planters and traders are cheering the new tax breaks and subsidies meant to sharpen their edge in global markets. It is a win for the growers.
The state is handing out a 3 rupee per kg subsidy for export-ready CTC tea. This is the first time the government has backed the segment this way. Orthodoxy and speciality teas get a bigger bump, too. The production subsidy jumps from 10 to 15 rupees per kg, with Matcha tea now joining the list of supported goods.
Small growers get a major break on their bottom line. The annual income tax exemption threshold climbs from 2.5 lakh to 10 lakh rupees. Meanwhile, big players will face a restored agricultural income tax starting April 1, 2026. The government plans to funnel that cash straight into tea garden community welfare.
Industry groups are backing the plan. The Guwahati Tea Auction Buyers Association called the export move a "landmark initiative that would enhance Assam tea's competitiveness in international markets and improve price realisation across the value chain."
Beyond the trade incentives, the budget targets the workers. Officials promised to keep the 15,000 rupee wage compensation for pregnant women in place. They are also pouring funds into garden hospitals, schools, housing, and roads. The Tea Association of India touted the cuts to VAT on piped natural gas as another shot in the arm for the sector. It is a heavy investment in the state's signature crop.
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