The Assam Government has unveiled a comprehensive package of measures for the tea sector in the 2026-27 State Budget, announcing tax relief for small tea growers, enhanced production subsidies, a first-ever export incentive for premium CTC tea, expansion of land rights for tea garden families and a new tea tourism initiative.
Presenting his maiden Budget in the Assembly on Friday, Finance Minister Jayanta Malla Baruah proposed raising the agricultural income tax exemption limit for small tea growers from Rs 2.5 lakh to Rs 10 lakh annually. At the same time, agricultural income tax for larger tea estates will be restored with effect from April 1, 2026, with the additional revenue earmarked exclusively for the welfare of tea garden communities.
Highlighting the sector’s growth, Baruah said orthodox tea production in Assam has increased from 4.39 crore kg in 2021-22 to nearly 8 crore kg in 2025-26, registering over 80 per cent growth in four years. He also noted that Assam has successfully produced premium Matcha tea, with the first batch fetching nearly Rs 3,000 per kg at the Guwahati Tea Auction Centre.
To promote value addition and exports, the government has included Matcha tea under the eligible category of orthodox and specialty teas. The production subsidy for orthodox and specialty teas has also been enhanced from Rs 10 per kg to Rs 15 per kg.
In a first for the state, the Budget introduced a Rs 3 per kg export subsidy for premium-quality Assam CTC tea exported directly through recognised export channels, aiming to improve exports and foreign exchange earnings.
The government also announced that support under the Assam Tea Industries Special Incentives Scheme (ATISIS) will be strengthened. Tea garden hospitals will receive infrastructure upgrades, diagnostic facilities, medicines, equipment and dedicated medical personnel to improve healthcare services for workers.
On land reforms, Baruah said nearly 30,000 tea garden families have already received land pattas, while surveys have begun in another 250 tea gardens. The government aims to provide land rights to an additional 1.14 lakh families during the current financial year and ensure legal land ownership for all 3.5 lakh tea garden families over the next five years. He also informed the Assembly that the Centre has taken an in-principle decision to extend PMAY housing benefits to eligible tea garden workers.
The Budget further announced the launch of the Assam Tea and Golf Trail, a tourism initiative integrating the state’s tea estates with its championship golf courses to promote high-value domestic and international tourism.
Meanwhile, the Guwahati Tea Auction Buyers Association (GTABA) welcomed the introduction of the export subsidy, describing it as a “historic first” for Assam’s tea industry. GTABA Secretary Dinesh Bihani said the incentive would strengthen the global competitiveness of Assam’s premium CTC tea, encourage higher exports, improve price realisation and benefit tea producers, manufacturers, buyers and exporters. He added that the initiative would also boost business at the Guwahati Tea Auction Centre (GTAC), India’s largest CTC tea auction platform, by attracting greater participation from exporters and buyers.
