Assam to raise subsidy on orthodox tea from Rs 10 to Rs 15 per kg, eyes global export surge

Dispur, Feb 12: Assam Chief Minister Himanta Biswa Sarma announced an increase in the subsidy for orthodox tea from Rs 10 per kilogram to Rs 15 per kilogram. The decision is intended to accelerate exports and leverage the benefits arising from India’s recent Free Trade Agreements (FTAs) with the United Kingdom and the European Union, along with tariff advantages expected under a new agreement with the United States.

Addressing the media, Sarma expressed confidence that Assam tea is on the brink of reclaiming its global leadership, citing rising exports and a revival in orthodox tea production after years of decline.

“We have reached a position where Assam tea exports, which had earlier declined, are now rising again. Orthodox production had slowed down in the past, but it has picked up significantly. The signs this year are very encouraging,” the Chief Minister said.

The subsidy hike was finalised following a meeting with leading tea associations of Assam. According to Sarma, the enhanced financial support will help producers fully capitalise on tariff reductions under the FTAs with the UK and the EU, making Assam’s premium orthodox tea more competitive in international markets.

Orthodox tea, known for its traditional manufacturing process and high export demand, had witnessed a downturn in recent years due to stiff global competition and market pressures. The state government’s renewed focus on export-oriented production, combined with central trade agreements, is expected to reverse that trend.

Sarma noted that a series of measures undertaken by the state government over the past year have already contributed to record tea production and improved export performance. With fresh tariff benefits in key Western markets, he asserted that the “golden era of Assam tea” could return.

Industry stakeholders have welcomed the subsidy enhancement, viewing it as a timely intervention to boost competitiveness and strengthen Assam’s foothold in premium international markets.