Government Aid Urged for Indian Tea Industry

The Indian Tea Association (ITA) is pressing the West Bengal government for significant financial and regulatory interventions to revive the tea industry in Darjeeling, Dooars, and Terai regions. This appeal comes amid concerns over declining production, increasing costs, and market pressures threatening the sector's sustainability. The ITA has outlined specific measures in two White Papers, addressing financial aid, plantation rejuvenation, and modernization needs.

For Darjeeling, a drastic production drop from 14.49 million kg in 1990 to 5.6 million kg in 2025 necessitates targeted government action to protect its industry and Geographical Indication (GI) status. The association proposes an annual financial package of around Rs 113 crore. This includes support for orthodox tea production, working capital, transportation, and factory upgrades. Seasonal industry status and reduced financial burdens are also sought for Darjeeling plantations.

Across both Darjeeling and the Dooars-Terai region, the ITA has requested dedicated revival packages, interest subvention, and modernization of manufacturing facilities. Labor and regulatory reforms, alongside promoting tea tourism and diversified plantation activities, are recommended to boost revenue and support rural economies. To address market challenges, a Minimum Sustainable Price for Made Tea and a Minimum Import Price for orthodox teas are proposed. The ITA also seeks rationalization of GST on ready-to-drink tea products and increased RoDTEP support for exports.

The ITA has engaged in several meetings with West Bengal government officials to present these proposals. The association emphasizes that these measures are crucial not only for tea producers but also for safeguarding the employment and rural livelihoods dependent on the industry. Time-bound implementation of these policies is deemed vital for the long-term sustainability of the Darjeeling and Dooars-Terai tea sectors.