Assam's 2026-27 budget introduces the state's first dedicated export subsidy for premium CTC tea, Rs 3 a kilogram (roughly 3 US cents).

Finance Minister Jayanta Malla Baruah tabled the budget, his first in the role, on July 11, according to the Assam Tribune and the Daily Excelsior.

The budget also raises the production subsidy for orthodox and speciality tea from Rs 10 to Rs 15 a kilogram (roughly 10 cents to 16 cents), extending the higher rate to premium matcha for the first time, the two outlets reported.

On the tax side, the exemption threshold on agricultural income for small tea growers rises from Rs 2.5 lakh to Rs 10 lakh a year (roughly $2,600 to $10,500), while the tax is restored for larger assessees starting April 1, with the revenue earmarked for tea garden community welfare.

Dinesh Bihani, secretary of the Guwahati Tea Auction Buyers' Association, said the subsidy is the first dedicated export incentive for premium Assam CTC tea in the state budget's history, the Daily Excelsior reported. P.K. Bhattacharjee, secretary general of the Tea Association of India, described the budget as "progressive and forward-looking" for the industry, according to the same report.

The budget also cuts the VAT on piped natural gas for connected tea estates from 14.5% to 5%, strengthens the existing Assam Tea Industries Special Incentives Scheme, and continues a Rs 15,000 (roughly $155) wage-compensation payment for pregnant workers in tea garden areas.

Assam grows over half of India's tea and has leaned on export and production subsidies before through ATISIS, introduced in 2020. This budget is the first to single out CTC, the everyday grade that makes up the bulk of the state's output, for its own export incentive, rather than reserving support for orthodox tea alone.

Sources: Assam Tribune, Tea industry gives Assam Budget thumbs-up for export subsidy, tax relief; Daily Excelsior, Assam Budget: Planters, traders say subsidy, incentive proposals to boost tea sector.