Assam tea industry seeks Green Leaf Cess relief, hails ATISIS support

Guwahati: The Tea Association of India (TAI) expressed gratefulness for introducing the Assam Tea Industry Special Incentive Scheme (ATISIS) 2020, which has provided a much-needed financial succour to this ailing industry during the recent times.

TAI in a memorandum stated , “We are also thankful to the Finance Department, Govternment of Assam for promptly releasing the Subsidy amount during each of the financial year to most of the eligible units under all components on a regular basis. The scheme has immensely benefitted the Assam tea industry by way of cost mitigation and sustaining Orthodox production. This has also led to an increase in Assam Orthodox production in 2025 by around 36% over 2024. Additionally, export has also seen a significant rise of 29.36 Mkgs during the year 2025 over 2024, wherein Assam orthodox is a major contributor”.

India has exported 285.53 Mkgs of tea during the year 2025 as per the data released by Tea Board of India. This is the highest export quantity ever registered by the country. Assam Orthodox teas have comprised the bulk of the Indian tea export basket. This significant milestone would not have been possible without the support received from your end.


TAI added, “A large number of tea estates have not received subsidy amounts due for past financial years under ATISIS although all requisite documentation have been dully submitted within the requisite time frame and approved by all the other Departments (Bank, DICC, Tea Board). Since boosting Orthodox production was a critical objective of the ATISIS 2020 scheme to increase export, it is apprehended that the already achieved spurt in Orthodox production in Assam may be hampered if due subsidy is not received by the units. Moreover, for most of the Orthodox producing Gardens, the transacted export price to the importer took it to account the subsidy being provided by the Government of Assam and the price was agreed upon considering the Orthodox subsidy receivable from the Govt of Assam under the scheme”.

The Tea Association of India would like to place on record its sincere appreciation to the Government of Assam for keeping in abeyance the levy of Agricultural Income Tax from cultivation of tea for a period of 03 (three) yearsw. e.f. 01.04.2023 to 31.03.2026, as notified vide Gazette Notification No. FTX. 90/2010/140 dated 28.06.2023.

These measures have provided much-needed relief to the tea industry at a time when the sector continues to face significant cost pressures, volatile market conditions, and sustainability challenges.

For the Assam industry to remain viable, it is essential that the cost of production is rationalized and to that end withdrawal of Green Leaf Cess could play a vital role. Tea Association of India would therefore urge the Government of Assam to provide temporary relief to the industry by providing exemption from payment of Green Leaf Cess for further a period of 3 years with effect from 1st January, 2027 to aid the industry to tide over the present critical phase.

The tea association stated tea prices have not kept pace with the rate of growth of prices of inputs over the years, while this has happened; the costs of production for Estates have grown rapidly. The CAGR growth rate in prices fetched in GTAC from the year 2016 to 2025 has been a mere 4.46%, whereas key ingredients in the cost of production (Coal, MOP, gas, sulphar etc) including Labour wages have registered an average CAGR growth of 9.77%.
The association said Tea tourism has emerged as a high-potential avenue for economic diversification, heritage preservation, and employment generation in Assam’s tea-growing regions. While the State Government has initiated tea tourism projects and provides limited financial assistance to selected tea estates, the present level of budgetary support is inadequate to develop this sector on a sustainable and scalable basis.