Guwahati: Tea industry associations in Assam have welcomed the subsidy, tax relief and welfare measures announced in the Assam Budget 2026-27, saying the initiatives will strengthen the state’s tea sector, improve global competitiveness and enhance the welfare of tea garden workers.
The budget, presented by Finance Minister Jayanta Malla Baruah in the Assam Assembly on Friday, introduced a series of incentives for tea producers, exporters and small growers, along with proposals aimed at improving healthcare, tourism and infrastructure in tea-growing regions.
Export subsidy announced for premium Assam CTC tea
One of the key announcements in the budget is a production subsidy of Rs 3 per kg for export-oriented and premium-quality Assam CTC tea, marking the first time such an incentive has been introduced.
The government has also increased the production subsidy for orthodox and speciality teas from Rs 10 per kg to Rs 15 per kg. Premium Matcha tea has also been included under the subsidy scheme.
Industry representatives said the incentives would help Assam tea exporters remain competitive in international markets amid rising logistics costs and increasing global competition.
Tax relief for small tea growers
To support small tea growers, the state government has proposed raising the agricultural income tax exemption threshold from Rs 2.5 lakh to Rs 10 lakh in annual agricultural income.
At the same time, agricultural income tax will be restored for larger assessees from April 1, 2026. The government said the additional revenue generated through the measure will be used exclusively for the welfare and development of tea garden communities.
The budget also proposes strengthening support for growers through the Assam Tea Industries Special Incentives Scheme (ATISIS) while introducing additional measures to improve healthcare facilities and promote tea tourism.
Industry bodies praise budget measures
The Guwahati Tea Auction Buyers Association (GTABA) described the Rs 3 per kg export subsidy for premium CTC tea as a landmark initiative.
GTABA Secretary Dinesh Bihani said the incentive would improve the competitiveness of Assam tea in international markets and enhance price realisation across the tea value chain.
He also noted that the Guwahati Tea Auction Centre (GTAC), India’s largest CTC tea auction platform, is expected to benefit significantly from the new export incentive.
The Tea Association of India (TAI) also welcomed the budget, describing it as one of the most progressive for the tea industry in recent years.
TAI Secretary General P.K. Bhattacharjee said the sector remains a key contributor to Assam’s economy and employment, and praised the government for introducing measures that address both industry growth and worker welfare.
Focus on tourism, healthcare and infrastructure
The budget includes several initiatives beyond production incentives.
The government has proposed reducing VAT on piped natural gas from 14.5 per cent to 5 per cent, a move expected to lower operational costs for tea estates connected to piped gas networks.
It has also announced plans to launch the Assam Tea and Golf Trail, a tourism initiative aimed at combining the state’s tea estates with its golf courses to create a unique travel experience for domestic and international visitors.
Healthcare infrastructure in tea gardens is also set to receive a boost through improved hospital facilities, better diagnostic services, medicines, medical equipment and the deployment of dedicated doctors and healthcare personnel.
In addition, the government will continue providing Rs 15,000 under the Wage Compensation Scheme for pregnant women in tea garden areas to support maternal healthcare and nutrition.
Welfare measures for tea garden communities
The budget also outlines several social welfare initiatives for tea garden workers and their families.
These include the construction of Mahaprabhu Jagannath Community Hall-cum-Skill Centres, housing under the Pradhan Mantri Awas Yojana-Gramin (PMAY-G), model high schools in tea estates and concrete roads in labour lines.
Industry stakeholders said the combined package of production incentives, tax relief and welfare measures is expected to strengthen Assam’s tea sector while improving the quality of life for thousands of workers dependent on the industry.
