Assam: Government mulls providing subsidised tea to ration card holders from 2024

Guwahati: In a huge boost to the tea industry, Assam chief minister Himanta Biswa Sarma Saturday announced that his government is planning to make available tea at a subsidised rate of Rs. 100 to Rs. 150 per kg to all ration card holders from 2024.

The announcement was made at a time when tea growers of the state kick-started a year-long celebration of the plantation industry reaching a crucial milestone of 200 years.

“Assam government is making an effort to boost the tea production in the state. We are considering whether we can provide 1 kilo of tea at 50 per cent price to the ration card holders. They are getting subsidized rive, Rs. 5 lakh worth of ration cards. Now the market rate of tea is ranging from Rs. 350 to Rs. 400,” Sarma said.

We are considering whether we can supply tea to fair-price shops (FPS) at Rs. 100 or Rs. 150 per kilo. We are providing them with subsidized rice. Medical insurance and now we are planning to provide them subsidized tea,” Sarma further said.

“But this will not be possible during this year. We are planning to do it in the next year. We have invited all tea companies for a discussion in this regard. We asked them whether they could give us or not. As soon as they reply to us, we will take a final call,” the chief minister said.

The announcement of the chief minister came at a time when consumption of tea is going down countrywide with tea producers bodies like the Indian Tea Association (ITA), Tea Association of India (TAI) and North Easter Tea Association (NEDA) calling for a united effort to overcome the formidable challenges that continue to haunt it.

Domestic tea consumption in 2022 was estimated to be about 1170 million kg, increasing annually at about 2.32 per cent. The Tea Board has estimated current per capita consumption at 850 gms, an increase from 786 gms.

Assam now produces nearly 700 million kg of tea annually and accounts for around half of India's overall tea production. The state also generates annual foreign exchange earnings estimated at an equivalent to Rs. 3,000 crore.

India as a whole contributes 23 per cent to the global tea output and employs around 1.2 million workers in the tea plantation sector.

In 1823, Robert Bruce discovered wild tea plants growing in the upper Brahmaputra Valley. Subsequently, a tea garden was started by the government in 1833 in the erstwhile Lakhimpur district.

In October this year, the Assam government raised the daily wage for tea garden workers by Rs. 27, over and above other benefits they are entitled to.

Post the revision, tea workers in Assam’s Barak valley are now getting Rs. 210 per day and that of Brahmaputra valley at Rs. 232.