The ceremonial distribution of benefits to the Tea Gardens under Assam Tea Industries Special Incentive Scheme (ATISIS) is held on Monday. Under ATISIS a total of 486 gardens have been provided benefits by the Government during this financial year, amounting to a total of Rs. 94.70 crores.
The scheme has four components which include interest subvention of 3% per annum on Working Capital Loan, Rs. 10/- per kg subsidy on Orthodox or Specialty Tea Production besides subsidy of 25% of the cost of Plant & Machinery for Orthodox and Specialty Tea Unit and agricultural Income Tax Holiday up to FY 2026-27
The Assam government through this scheme ensured the promotion of Orthodox and Specialty Tea along with the long-term financial stability of the tea industry.
‘Assam Tea’ is 200 years old, and the tea sector has been the backbone of the economy of Assam.
Shailja Mehta, President Tea Association of India (TAI) recently stated that amidst reports of closure of Straits of Harmouz, the assurance from United States on insurance coverage and keeping the straits open notwithstanding, the prospect of Indian Tea exports do look grim as of now.
TAI stated that the Strait of Hormouz has always been a critical passage for Indian exports (all commodities) but particularly in the case of export of tea in countries located within the Persian Gulf. Indian exports to countries such as Iraq, Iran, Kuwait, Saudi Arabia (Eastern ports in the Gulf), Bahrain, Qatar, United Arab Emirates pass via Strait of Harmouz.TAI added in the recent years this region has assumed great significance for Indian tea in attaining a substantive jump in exports figures as would be evident from the figures that the collective exports to UAE, Iran and Iraq stand at 115 M. kgs in 2025. “Therefore, if one were to look at the total tea export figures of 280 MKgs attained during 2025, almost 41% of teas exported by India pass through the Strait of Hormouz. The thrust in the export figures have been achieved through quantitative jump in orthodox teas and the countries named above have registered significant growth, and therefore the ongoing war with the prospect of trade coming to a halt or suspended due to prevalent tensions is going to impact Indian tea exports particularly Assam orthodox tea, 50% of which finds its way to the countries like Iran, Iraq and UAE”.
She said, “The recently announced hike in orthodox subsidy by the Government of Assam from Rs. 10 per kg to Rs. 15 per kg which is considered to be a major catalyst for growth in export of Assam orthodox tea, is expected to take a serious setback unless a remarkable solution to end the war is in sight.”
Assam Chief Minister Himanta Biswa Sarma recently said that the export of Assam has registered a substantial increase by 40 million kgs in the last 2025-2026. The state government has decided to increase the incentive on per kg orthodox tea from Rs. 10 to Rs 15.
Sarma had said that in the 2025-26 production of orthodox tea also increased substantially in the current fiscal.
Hailing the improved production and export as a strong turnaround after about 25 years, the Chief Minister said that the state has produced 50 million kgs of total tea and out of which 50 percent are orthodox tea.
“As per the statistics available with us, while the production of the Assam tea has registered an increase of 40 million kgs, the production of the South Indian tea has decreased in the current fiscal,” Sarma said.
The Chief Minister said that with the increased production figures, the tea producers in Assam would be able to take advantage of the recently signed free trade agreement with the European Union countries.