Tea Industry Applauds 82% Boost In Government Financial Aid
The Union Cabinet, chaired by Prime Minister Narendra Modi, has given the green light to a substantial increase in financial assistance for the Tea sector under the 'Tea Development & Promotion Scheme'. The allocation is set to surge by 82 per cent from Rs. 290.81 crores to Rs. 528.97 crores for the next two financial years (2024-25 and 2025-26).
In a cabinet meeting held on Thursday, various incentives were outlined to support small tea growers by mobilising them into Self-Help Groups (SHGs) and Farmer Producer Organizations (FPOs). The plan involves setting up 800 SHGs and 330 FPOs over the next two years, a significant increase compared to the previous assistance provided. This initiative aims to expand the coverage of small tea growers from 1000 to more than 30,000, focusing on enhancing productivity, quality, and value addition for greater price realisation.
The tea industry has widely applauded this move, recognising its potential to bolster the Indian tea market both domestically and internationally.
Rajeev Baid, Founder - Chai Chun and MD- Okayti, welcomed the Cabinet's decision to significantly boost financial assistance under the 'Tea Development & Promotion Scheme' by 82 per cent, and called it a pivotal moment for the tea industry. “This visionary move, led by Tea Board Chairman Amardeep Singh Bhatia, showcases a deep commitment to promoting Indian tea on both domestic and international fronts. This substantial boost not only paves the way for enhanced global visibility of Indian teas but also addresses crucial aspects like packaging and export support. The enhanced outlay signifies a strategic investment to elevate Indian tea's global presence. The incorporation of modern technologies in tea plantation activities and the allocation of Rs 40 crore for blending and packaging units, emphasising value addition, showcases a forward-thinking approach. Our sincere thanks to Chairman Amardeep Singh Bhatia and Deputy Chairman Saurav Pahari and the Tea Board for their proactive efforts,” said Baid.
Hailing this decision, Vikash Kandoi, Executive Director, Jay Shree Tea said that the industry wishes to want to partner with the Government through communication to Indian consumers about the quality and brewing of tea (especially Darjeeling) and participation in exhibitions worldwide (including India) for the promotion of Indian teas.
“This is being done by the Chinese and Sri Lankan tea promotion authorities and also by the French for specialty products like Champagne. A recent example is the encouraging response we received at Foodex Japan 2024, which concludes today," said Kandoi.
Sahil Arya, Co-founder and Director at Fat Tiger, hailed the Cabinet's decision to nearly double financial support as a game-changer for the Indian tea industry. “This boost in funding will fuel endeavours to enhance tea quality and productivity, facilitate trials for new tea varieties, and strengthen the industry's presence in both domestic and international markets. The move aims to empower cultivators and foster competitiveness. Furthermore, earmarking Rs. 42 crores for advertising Indian tea domestically and abroad underscores a strategic move to showcase its diversity and excellence, potentially catapulting the nation into a dominant position in the global tea market. This significant investment not only catalyses export growth but also underscores India's prowess in tea manufacturing, fostering innovation and market accessibility,” said Arya.
Ravi Bhamidipaty, Chairman, Roastea commented, “Tea is a national beverage in India. And we are one of the largest growers. This is an excellent proposition by the government. This will ensure inclusive growth, sustainable farming, higher output per acre and above all absurd good products at affordable prices to all. I commend this initiative.”
“The recent decision by the Cabinet under the ‘Tea Development & Promotion Scheme’ shows the government’s commitment to encouraging the growth and sustainability of the tea industry making it a vital segment of our agricultural landscape. The increase in financial assistance not only reflects a proactive approach to addressing the evolving needs of the tea sector but also shows that the government understands how important tea is for our country’s economy. Today India is among the top 5 tea exporters in the world and we firmly believe that the infusion of these additional funds will improve innovation, enhance infrastructure and empower the people associated with tea cultivation. We support this initiative and look forward to actively participating in the continued development of the tea sector. This financial boost will undoubtedly fortify the foundation upon which our industry stands, encouraging a future where tea cultivation thrives and contributes significantly to India's global standing in the agricultural domain,” says Shammi Agarwal, Director of Pansari Group.
This boost in funding comes as a boon for tea growers and stakeholders, enabling them to enhance the quality and productivity of Indian tea. By focusing on setting up self-help groups and farmer-producer organisations, the scheme empowers cultivators to excel in regional and international markets.
