Union Cabinet meet: 'Tea Development & Promotion Scheme' receives 82 per cent increase in financial assistance

Financial assistance under ‘Tea Development & Promotion Scheme’ increases by 82% from Rs. 290.81 crores to Rs.528.97 crore for 2024-25 and 2025-26

The financial assistance for the Tea sector under the ‘Tea Development & Promotion Scheme’ has been increased by 82% from Rs. 290.81 crore to Rs.528.97 crore for the next 2 financial years (2024-25 and 2025-26).

A range of incentives are planned to be provided to small tea growers by mobilizing them into SHGs and FPOs. 

Setting up of 800 SHGs and 330 FPOs has been envisaged in the next 2 financial years with increased assistance of Rs 105.5 Cr compared to 40 SHGs & 8 FPOs previously planned with an assistance of Rs 2.7 Cr. This will increase coverage of small tea growers from 1000 to more than 30,000 in the next two years. The assistance is aimed at increasing their productivity and quality, greater value addition and thereby greater price realization. 

The assistance/ support is for the common facilities like field mechanization equipment, leaf carriage vehicles, leaf sheds, pruning machines, mechanical harvesters and storage godowns.

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Assistance/support to the small tea growers is also for setting up of new mini tea units by SHG/FPO/FPCs for production of Orthodox, Green and Specialty teas to help small tea growers move up the value chain. The assistance/support is for soil testing for individual small growers mobilized through SHGs/FPOs and Capacity Building including through Farm Field schools for better extension services and upgradation of the skills of small tea growers on good agricultural practices/ tea garden management.

A significant increase in outlay has been made to promote Indian Tea in both domestic and international markets. The outlays have been increased by more than 10 times to Rs.72.42 crore in order to carry out extensive promotion campaigns for ‘Indian Tea’, including Darjeeling and other GI Teas, in international markets (to increase exports) and generic tea promotion campaigns in domestic markets (to increase awareness on, and promotion of consumption of, safe and quality tea among consumers). 

In order to help increase exports of value-added tea from India, a new sub-component for encouraging the setting up of blending and packaging units has been included with an outlay of Rs 40 Crore.

A new sub-component for research on blends and value-added products in international markets has been included for enhancing and diversifying exports. 

A new separate sub-component of Quality Assurance has been included in the scheme with an outlay of Rs 39.9 Crore. Out of this Rs 20 Crore has been provided for setting up / upgradation of Tea testing laboratories. In addition, increased drawing and testing of Tea samples is planned. Awareness campaigns are also planned to be carried out to enhance consumer awareness on the quality of tea sold in domestic markets. 

A new component of Technological Intervention for tea Plantation has been included for carrying out activities such as Precision farming, Drone Surveillance, traceability & blockchain etc. This will also cover digitization of the Tea Board. 

Fresh financial support shall be provided for uprooting old (>50years) and unproductive tea bushes and carry out replantation in about 1000 Ha of area and linked to incremental increase in production of higher quality tea including orthodox tea assessed through a transparent methodology.

Welfare programs by Tea Board (supplementary to those carried out under the Plantation Labour Act by Estate management) such as health awareness camps for workers, and educational stipends for wards of tea garden workers have been continued. Capacity-building programs including technical workshops, training on Good Agricultural practices, GMP, field operations etc. will continue to be carried out by the Tea Board.