Mon. Jun 9th, 2025

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New Delhi: The government has increased the outlay for the Tea Development and Promotion Scheme by 82℅ to 528.97 crore for the next two financial years (to FY26), a senior government official said.

The scheme is aimed at supporting the development of improved varieties of tea to increase production and quality. India is the largest producer of black tea and the third-largest tea exporter, but exports dipped by more than 4% to $673 million during April-January this fiscal.

Under the scheme, the government will assist small tea growers, whose number has increased to 0.23 million. Of these farmers, 70% have one hectare or less of land.

The scheme aims to set up 800 self-help groups (SHG) and 330 farmer-producer organisations (FPOs) by FY26, with an outlay of 105.5 crore, said Amardeep Singh Bhatia, additional secretary in the department of commerce. Earlier, the plan was to set up 40 SHGs and 8 FPOs with an outlay of 2.7 crore. “The outlay has been increased by 82% from 290.81 crore to 528.97 crore for the next two financial years,” Bhatia said.

The increased outlay will be used to promote Indian tea in domestic and international markets. Funds for the promotion of tea have been increased to 72.42 crore. The government will promote Darjeeling and other GI teas in global markets to improve exports. It also has set aside 40 crore for blending and packaging units for value addition, Bhatia added. “The objective is to increase exports, especially in value-added segments and consumption of quality tea,” he said.

Another 20 crore has been allocated to set up or upgrade tea testing labs to improve quality.

The scheme also aims to harness technology such as precision farming, drone surveillance, traceability through blockchain, and digitisation of the Tea Board’s activities.

India exported tea worth $225 million to countries in the West Asia North Africa (WANA) region and tea worth $150 million exported to European countries in the first 10 months of this fiscal. The country has also started exporting tea to new markets such as Iraq and Turkey.

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Published: 07 Mar 2024, 08:47 PM IST

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