Financial Boost for Tea Sector: 82% Increase in Assistance to Small Growers

The financial assistance for the Tea sector under the ‘Tea Development & Promotion Scheme’ has been increased by 82% from Rs. 290.81 crores to Rs.528.97 crore for the next 2 financial years (2024-25 and 2025-26).

A range of incentives are planned to be provided to small tea growers by mobilizing them into SHGs and FPOs. Setting up of 800 SHGs and 330 FPOs has been envisaged in the next 2 financial years with an increased assistance of Rs 105.5 Cr compared to 40 SHGs & 8 FPOs previously planned with an assistance of Rs 2.7 Cr.

This will increase coverage of small tea growers from 1000 to more than 30,000 in the next two years. The assistance is aimed to increase their productivity and quality, greater value addition and thereby greater price realization. 

The assistance/ support is for the common facilities like field mechanization equipment, leaf carriage vehicles, leaf sheds, pruning machines, mechanical harvesters and storage godowns.

Assistance/support to the small tea growers is also for setting up of new mini tea units by SHG/FPO/FPCs for production of Orthodox, Green and Specialty teas to help small tea growers move up the value chain. The assistance/support is for soil testing for individual small growers mobilized through SHGs/FPOs and Capacity Building including through Farm Field schools for better extension services and upgradation of the skills of small tea growers on good agricultural practices/ tea garden management.

Significant increase in outlay has been made to promote Indian Tea in both domestic and international markets. The outlays have been increased by more than 10 times to Rs.72.42 crore in order to carry out extensive promotion campaigns for ‘Indian Tea’, including Darjeeling and other GI Teas, in international markets (to increase exports) and generic tea promotion campaigns in domestic markets (to increase awareness on, and promotion of consumption of, safe and quality tea among consumers). 

In order to help increase exports of value-added tea from India, a new sub component for encouraging setting up of blending and packaging units has been included with an outlay of Rs 40 Crore.

A new sub component for research on blends and value-added products in international markets has been included for enhancing and diversifying exports. 

A new separate sub component of Quality Assurance has been included in the scheme with an outlay of Rs 39.9 Crore. Out of this Rs 20 Crore has been provided for setting up / upgradation of Tea testing laboratories. In addition, increased drawing and testing of Tea samples is planned. Awareness campaigns are also planned to be carried out for enhancing consumer awareness on quality of tea sold in domestic markets. 

A new component of Technological Intervention for tea Plantation has been included for carrying out activities such as Precision farming, Drone Surveillance, traceability & blockchain etc. This will also cover digitization of the Tea Board. 

Fresh financial support shall be provided for uprooting old (>50years) and unproductive tea bushes and carry out replantation in about 1000 Ha of area and linked to incremental increase in production of higher quality tea including orthodox tea assessed through a transparent methodology.

Welfare programs by Tea Board (supplementary to those carried out under Plantation Labour Act by Estate management) such as health awareness camps for workers, educational stipend for wards of tea garden workers have been continued. Capacity building programs including technical workshops, training on Good Agricultural practices, GMP, field operations etc. will continue to be carried out by Tea Board. 

Meanwhile, Prime Minister Narendra Modi on Saturday hailed Assam Tea's Global Presence and Tea Garden Community's Dedication.

In a post on 'X', Prime Minister Narendra Modi praised Assam Tea for its widespread recognition worldwide. He acknowledged the tireless efforts and resilience of the tea garden community in Assam.

"Assam is renowned for its magnificent tea gardens, and Assam Tea has gained prominence globally. I commend the exceptional dedication of the tea garden community, whose hard work continues to elevate Assam's reputation worldwide," the Prime Minister posted.

Assam is known for its splendid tea gardens, and Assam Tea has made its way all over the world.

I would like to laud the remarkable tea garden community, which is working hard and enhancing Assam’s prestige all over the world.

I also urge tourists to visit these tea gardens… pic.twitter.com/lCMSyQCPZg

— Narendra Modi (@narendramodi) March 9, 2024

He also encouraged tourists to explore these tea gardens while visiting the state, highlighting their significance in Assam's cultural and economic landscape.

Also Read: PM Inaugurates Multiple Development Projects Worth Rs 17,500 Crores in Assam