Assam Revises Tea Incentive Scheme, Boosts Export Support and GTAC Auctions

GUWAHATI, Sept 20: The Assam government has expanded incentives for the tea industry by revising the Assam Tea Industries Special Incentives Scheme (ATISIS), 2020, with increased support for exports, Orthodox and Speciality Tea and organised tea auctions through the Guwahati Tea Auction Centre (GTAC).

The revised scheme, notified on September 18, provides an incentive of Rs 3 per kg for exported Single Origin Assam Quality CTC Tea. The support is aimed at offsetting higher inland transportation, container repositioning and terminal handling costs faced by tea producers and exporters in the State.

The revised policy has also included CTC tea sold through the GTAC within the definition of “Quality CTC Tea” for claiming the export incentive. The move links Assam’s organised auction system with the export support mechanism and is expected to encourage greater participation in the Guwahati auction.

The production subsidy for Orthodox and Speciality Tea has been increased from Rs 10 to Rs 15 per kg, while the annual ceiling has been raised to Rs 1 crore per unit or garden. Matcha Tea has also been brought under the scheme for the first time, while the working capital interest subvention has been increased from Rs 15 lakh to Rs 20 lakh.

The revised scheme will remain in force until March 31, 2031. The changes followed proposals made by the Assam government in the 2026-27 Budget, including a Rs 3 per kg incentive for export-oriented premium Assam CTC Tea and increased support for Orthodox and Speciality Tea.

Dinesh Bihani, secretary of the Guwahati Tea Auction Buyers Association, said recognising GTAC auction sales under the export incentive could strengthen the organised auction channel and Assam’s position in export markets.

“For Guwahati, one of the world’s largest CTC tea auction centres, the recognition of GTAC auction sales under the new export incentive is expected to encourage greater participation in the organised auction channel, support Assam’s export competitiveness and further strengthen GTAC’s standing in domestic and international markets,” Bihani said.

The tea trade welcomed the revised policy and acknowledged the efforts of the GTAC chairman towards strengthening the auction platform. The updated incentive structure came as Assam’s tea industry faced rising logistics costs and sought greater support to improve its competitiveness in overseas markets.

Assam Rising
Author: Assam Rising

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