Assam Allocates ₹39.01 Crore Grant to Support 131 Tea Estates in FY 2024-25

Guwahati: In a significant boost to Assam’s tea industry, the government has extended a financial grant of ₹39.01 crore to 131 tea estates for the fiscal year 2024-25 under the Assam Tea Industries Special Incentive Scheme (ATISIS). This move aims to support and promote the growth of the state’s tea sector, which remains a key contributor to Assam’s economy.

The scheme offers various incentives designed to enhance productivity and ease financial stress on tea growers. Among the key benefits is a 3% annual interest subvention on working capital loans, with a cap of ₹20 lakhs per year. This helps reduce the cost burden for tea estate owners, enabling them to focus more on improving quality and output.

Additionally, industrial units involved in the production of orthodox or specialty teas, such as green, white, oolong, Singpho, purple, or yellow tea, will receive a ₹10 per kg subsidy on their annual production. This subsidy is meant to encourage diversification into non-CTC (Crush, Tear, Curl) teas, which are gaining popularity in both domestic and international markets.

To further support modernization, the scheme provides a 25% plant and machinery subsidy for units producing orthodox and specialty teas. This measure is expected to enhance efficiency in tea production, allowing producers to upgrade their equipment and technology.

In another relief to the tea industry, the agricultural income tax holiday has been extended until FY 2024-25. This will provide additional financial support, ensuring the long-term sustainability of tea estates.

Overall, these incentives under ATISIS reflect the government’s commitment to strengthening Assam’s tea sector by reducing costs, promoting innovation, and encouraging the production of specialty teas.

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