"Progressive and forward-looking": Tea Association of India hails Assam Budget 2026-27
Guwahati, July 11
The Tea Association of India on Saturday lauded the Assam government's State Budget for the FY 2026-27 and described it as one of the most progressive and forward-looking budgets for the Tea industry in Assam.
According to a press release, the Tea Association of India welcomed the Assam Government's Budget proposals for the FY 2026-27, saying that this Budget has shown a strong focus on capital expenditure, which also focuses on long-term sustainability and has provided a fillip for the Tea industry in all spheres. The tea sector has been the backbone of the state economy and an extremely important sector from the employment generation perspective.
Speaking about the budget, PK Bhattacharjee, Secretary General of the Tea Association of India, said, "The Assam Finance Minister has made several proposals for the Tea industry and the workforce associated with it in his Budget proposals. The Assam Tea Industries Special Incentive Scheme (ATISIS) 2020, notified vide Notification No. FIF.68/2019/147 dated 6th November 2020 has played a pivotal role in providing much-needed financial relief to tea producers through interest subvention, production-linked incentives for orthodox/speciality teas, and support for capital investment in factory infrastructure, including Agricultural Income Tax holidays in the last four years. The proposal for an increase in Orthodox subsidy under ATISIS 2020 from Rs 10 to Rs 15 per Kg, including of Matcha Tea under the eligible category of Orthodox & Speciality tea and the introduction of subsidy for export-oriented quality Assam CTC tea will encourage export and increase foreign exchange earnings."
The association also stated that the lowering of VAT from 14.5 per cent to 5 per cent on piped natural gas shall reduce the cost of production of the Tea Estates connected with piped natural gas.
"The proposal to launch the Assam Tea and Golf Trail, a unique tourism initiative integrating Assam's globally renowned tea estates with its championship golf courses, will create a world-class experiential tourism circuit. The initiative, which is to be developed in partnership with tea estates, the tourism and hospitality sectors, and local communities, aims to promote tea tourism, attract high-value domestic and international tourists, and generate additional economic opportunities for the tea industry," they said.
Tea Association of India further said the proposal to strengthen Tea Garden Hospitals by improving infrastructure, diagnostics, medicines, medical equipment, and deployment of dedicated doctors & healthcare personnel along with proposal to strengthen last-mile healthcare delivery through Atal Mobile Medical Units, Arogya Biman medical drones, Hospital Ships, Jan Aushadhi Kendras, and expanded telemedicine services, with coverage extending to tea garden areas and other remote regions are encouraging.
"Continuing compensation of Rs 15000 under the Wage Compensation scheme for pregnant women of tea garden areas of Assam, the garden shall ensure better maternal care and nutrition. Proposals for Social welfare activities inside the tea garden, such as construction of Mahaprabhu Jagannath Community Hall cum Skill Centres, construction of houses under PMAY-G, Construction of model high schools in tea gardens, pucca roads in labour lines, etc will go a long way in the development of the tea garden community," association said.
— ANI
Reader Comments
The Assam Tea and Golf Trail sounds interesting but I hope it actually benefits the local communities and not just big hotel chains. Tourism projects often displace workers. But the lowering of VAT on piped natural gas is a smart move to reduce production costs. Let's see how implementation goes.
As someone who buys Assam tea regularly, I'm glad to see the government supporting Orthodox and specialty tea production. The quality of Assam CTC is world-class, and more export subsidies could really boost India's tea footprint globally. 👌
I hope ATISIS 2020 extension actually reaches the small tea growers and not just the big estates. Many small farmers don't have access to bank loans easily. The Rs 15/kg orthodox subsidy increase is good, but they need to simplify the application process. Too much paperwork still.
The mobile medical units and drone deliveries for remote areas are innovative! In the US, we talk a lot about rural healthcare gaps, but this is a practical solution. Happy to see Assam thinking differently about health access for tea garden workers.
Budget looks good on paper but let's be real - the real test is in execution. Tea garden wages are still low, and housing under PMAY-G needs to be actually delivered. Model schools are welcome, but we need quality teachers, not just buildings. Hope this time is different 🙏
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