Tea industry seeks Rs 113 crore annual package to revive Darjeeling sector

Kolkata: The Indian Tea Association (ITA) has sought a package of financial, regulatory and structural interventions from the West Bengal government to revive the tea industry in Darjeeling, Dooars and Terai, warning that declining production, ageing plantations, rising costs and market pressures are threatening the sustainability of the sector.

The recommendations are contained in two White Papers prepared by the association on the Darjeeling Tea Industry and the Dooars & Terai Tea Industry. The papers set out measures covering financial support, plantation rejuvenation, labour and regulatory reforms, manufacturing modernisation, market access and diversification.

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For Darjeeling, the White Paper highlights the steep decline in tea production, from 14.49 million kg in 1990 to 5.6 million kg in 2025. ITA has called for targeted government intervention to protect the region's tea industry and its GI status.

One of the key recommendations is an annual financial support package of about Rs 113 crore for the Darjeeling tea industry. The proposed package covers support for orthodox tea production, working-capital interest, transportation, mechanisation, social security, plantation rejuvenation and factory modernisation.

ITA has also proposed granting seasonal industry status to Darjeeling tea, along with measures to reduce the financial burden on plantations and improve their ability to invest in ageing tea areas and production infrastructure.

For both Darjeeling and the Dooars-Terai region, the association has sought dedicated revival and financial packages, interest subvention, rejuvenation of old tea plantations and modernisation of manufacturing facilities. It has also called for greater integration of tea plantations with government welfare and development schemes.

The White Papers recommend labour and regulatory reforms, as well as measures to promote tea tourism and diversification of plantation activities. ITA has argued that such measures could provide additional sources of revenue for tea estates while supporting employment and rural economies.

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On the market front, the association has proposed a Minimum Sustainable Price for Made Tea to address the gap between production costs and realisations. It has also sought a Minimum Import Price for orthodox teas to protect domestic producers from lower-priced imports.

ITA has recommended rationalisation of GST on ready-to-drink tea products and an increase in RoDTEP support for tea exports to improve the competitiveness of Indian tea in overseas markets.

The association has also called for measures to strengthen domestic demand and exports, alongside investment in plantation productivity, mechanisation and manufacturing capacity.

The recommendations come as the tea industry in North Bengal faces pressure on multiple fronts, including rising input and labour costs, ageing tea bushes, climatic challenges, weak market conditions and the need for investment in estates and factories.

ITA has presented the White Papers to the West Bengal government in a series of meetings. An ITA delegation met Industry, Commerce & Enterprises Minister Tapas Roy on July 28, Finance Minister Swapan Dasgupta on August 3 and Advisor to the Chief Minister Subrata Gupta on August 24.

The association has said the proposed measures are aimed not only at supporting tea producers but also at protecting employment and rural livelihoods dependent on the industry. It has sought continued dialogue with the state government and time-bound implementation of policy measures for the revival of the Darjeeling and Dooars-Terai tea sectors.