Tea industry is backbone of state economy, says CM Himanta Biswa Sarma
STAFF REPORTER
GUWAHATI: Ceremonially distributing incentives to 370 tea gardens in the state here today, Chief Minister Himanta Biswa Sarma said that the tea industry is the backbone of the State’s economy, and hence the government needs to give it a leg up.
The Chief Minister said, Under the Assam Tea Industry Special Incentive Scheme, we distributed Rs 64 crore among 370 tea gardens today, though the State Budget has earmarked Rs 100 crore for this. We distributed Rs 45 crore under this scheme in 2020–21. The tea industry received a blow during COVID-19. We announced this scheme to bail out the tea industry. We need to do this as the tea industry is the backbone of the State’s economy. This apart, lakhs of people are directly or indirectly dependent on this industry. The ailing economy of the tea gardens will have cascading effects on the welfare and health of the tea workers. I feel the incentives will bring stability to the tea industry."
The incentives comprise interest subvention of working capital, production subsidy, fixed capital subsidy, agriculture income tax holiday, etc.
The Chief Minister said, "Under this, the State Government provided three percent of the total interest in the working capital of the tea gardens. The government will also provide a seven percent subsidy on the production of Orthodox tea and Special tea. Assam produces the lion’s share of Orthodox tea in India. The fixed capital subsidy is for the purchase of machinery, equipment, and other assets. We have already announced a further three-year agriculture income tax holiday in the state budget."
He said, "The government will erect 10,000 houses under the Chief Minister’s Awas Yojana for tea workers. The State Budget has an allocation of Rs 30 crore for tea garden labourers defaulting on power tariff payments."
Present at the function, Indian Tea Association Chairman Nayantara Paul Choudhury said, "The scheme has been immensely beneficial to tea companies at a time when the industry is passing through acute financial stress. Assam's Orthodox production in 2022 was approximately 80 million kg. The increase in Orthodox production had an overall positive impact on India’s tea exports. The Chief Minister’s announcement of the enhancement of Orthodox tea incentives from Rs 7 to Rs 10 and now to Rs 12 per kg will further encourage sustaining quality, exports, and Orthodox tea production. The announcement in the year’s state budget for the promotion of Assam tea in select global destinations to commemorate 200 years of Assam’s tea is a welcome initiative."
She expressed deep gratitude to the State Government and the Chief Minister for extending benefits to the tea industry under the incentive scheme.
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