Stakeholders welcome Assam govt’s revised incentive scheme for tea industry

GUWAHATI: The Guwahati Tea Auction Centre (GTAC) has welcomed the Assam government's revised incentive scheme for the tea industry, terming it a landmark policy initiative.

The GTAC also said the ‘Assam Tea Industries Special Incentives Scheme (ATISIS), 2020’ elevates the importance of the Guwahati auction system.

Secretary of the Guwahati Tea Auction Buyers Association, Dinesh Bihani, said the most significant provision is the introduction of a Rs 3 per kg incentive for exported ‘Single Origin Assam Quality CTC Tea’.

It is aimed at offsetting Assam's higher inland transport, container repositioning and terminal handling costs as a landlocked state.

“Significantly, the notification recognises CTC tea sold through the GTAC as ‘Quality CTC Tea’ for this incentive, giving GTAC-linked teas a strong position under the scheme,” Bihani said.

The revised scheme also increased the Orthodox and Speciality Tea production subsidy from Rs 10 to Rs 15 per kg, raised the maximum annual claim to Rs 1 crore per unit or garden, officially included Matcha Tea, and enhanced working capital interest subvention from Rs 15 lakh to Rs 20 lakh.

The notification for the revised ATISIS 2020 was issued on Friday and has been extended till March 31, 2031.

Bihani said that 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.

“The tea traders are grateful to the state government for introducing this progressive policy framework,” he added.