Assam's tea industry is celebrating a significant resurgence, with exports reaching 40 million kg in the fiscal year 2025-26, marking a high point not seen in the last 25 years. This achievement is largely attributed to a surge in orthodox tea production, driven by the state government's proactive incentive scheme.
Chief Minister Himanta Biswa Sarma announced the milestone, highlighting that approximately 50% of the exported tea was orthodox, signaling a positive transformation in Assam's tea profile. The rise in orthodox tea sales at the Guwahati Tea Auction Centre (GTAC) vividly illustrates this shift, with sales doubling from 4.19 million kg to 9.15 million kg. Overall tea auction sales from Assam have increased to 19 million kg.
To further encourage this upward trend, the Assam government has increased the incentive for orthodox tea production from Rs 10 to Rs 15 per kg. This enhanced subsidy aims to incentivize tea gardens to transition from the more common CTC (Crush, Tear, Curl) method to orthodox tea production.
The Chief Minister also pointed out that Assam's tea sector is poised to benefit from free trade agreements with the European Union and the UK, in addition to new tariff benefits with the United States. These agreements are expected to provide a competitive edge to Assam tea in the global market. Sarma expressed optimism that these developments would pave the way for the "golden era" of Assam tea to return, allowing Indian tea to regain global leadership.
While Assam has witnessed an increase in tea production and exports, Southern India has experienced a decline of nearly 10 million kg. This regional contrast further emphasizes Assam's growing prominence in the Indian tea industry.
The state government is also focused on the welfare of tea garden workers, with Chief Minister Sarma stating that he has urged tea companies to share the benefits of increased production with them. Wages have already been increased twice in the last five years. Furthermore, the Assam government plans to distribute land pattas (land rights documents) to between 5,000 and 20,000 tea garden workers before March 10, potentially with Prime Minister Narendra Modi or Union Home Minister Amit Shah officiating the distribution.
The Tea Development & Promotion Scheme, spanning from 2023-24 to 2025-26, includes various incentives for small tea growers, encouraging them to form self-help groups (SHGs) and farmer producer organizations (FPOs). The scheme aims to improve productivity and quality, add value, and increase price realization. Support is provided for facilities such as field mechanization equipment, leaf carriage vehicles, leaf sheds, pruning machines, and storage godowns. The scheme also supports the establishment of new mini factories for producing orthodox, green, and specialty teas. The financial assistance for the Tea sector under this scheme has increased by 82%, from Rs. 290.81 crores to Rs. 528.97 crore for 2024-25 and 2025-26.
India's tea exports between April and October of FY 2025-26 reached USD 605.77 million, a 15.13% increase over the previous year. This indicates rising international confidence in India's tea farms, factories, and quality systems.