Guwahati: Assam’s budget on Friday unveiled a major push for the state’s tea industry, proposing to raise the production subsidy for orthodox and specialty teas by 50%, alongside significant tax relief for small tea growers.Further, a new subsidy of Rs 3 per kg will be introduced for export-oriented and premium-quality Assam CTC tea that is exported directly through recognised export channels, contributing to the foreign exchange earnings.The production subsidy for orthodox and specialty tea will be enhanced from Rs 10 per kg to Rs 15 per kg, finance minister Jayanta Mallabaruah said in his speech.Orthodox tea production increased from 4.39 crore kg in 2021-22 to nearly 8 crore kg in 2025-26, recording a strong growth of over 80% in 4 years.Mallabaruah proposed to increase the agricultural income tax exemption threshold fourfold for small tea growers from Rs 2.5 lakh to Rs 10 lakh of annual agricultural income.At the same time, agricultural income tax will be restored for larger assessees from April 1, 2026, with the additional revenue earmarked exclusively for the welfare of tea garden communities.
