Assam’s revised tea incentive scheme boosts GTAC-linked CTC exports
Guwahati : The Guwahati Tea Auction Centre (GTAC) has welcomed the Assam Government’s revised Assam Tea Industries Special Incentives Scheme (ATISIS), 2020, saying the new policy framework will strengthen the state’s tea industry and enhance the role of the Guwahati auction system in domestic and international markets.
The revised ATISIS, notified on September 18, introduces a Rs 3 per kg incentive for exported Single Origin Assam Quality CTC Tea, aimed at offsetting higher inland transportation, container repositioning and terminal handling costs faced by Assam’s tea industry.
A key provision of the revised scheme is the recognition of CTC tea sold through the Guwahati Tea Auction Centre as “Quality CTC Tea” for the purpose of the export incentive. According to the GTAC, the provision is expected to strengthen the position of auction-linked Assam CTC tea in export markets.
The revised scheme also raises the production subsidy for Orthodox and Speciality Tea from Rs 10 per kg to Rs 15 per kg and increases the maximum annual claim to Rs 1 crore per unit or garden.
Matcha Tea has also been brought under the scheme, while the working capital interest subvention has been enhanced from Rs 15 lakh to Rs 20 lakh. The revised scheme has been extended until March 31, 2031.
The latest measures build on the Assam government’s 2026-27 Budget proposals for the tea sector, which had announced a Rs 3 per kg incentive for export-oriented premium Assam CTC tea and higher support for Orthodox and Speciality Tea.
Dinesh Bihani, Secretary of the Guwahati Tea Auction Buyers Association, said the recognition of GTAC auction sales under the export incentive is expected to encourage greater participation in the organised auction channel.
“For Guwahati, one of the world’s largest CTC tea auction centres, the recognition of GTAC auction sales under the new export incentive is expected to encourage greater participation in the organised auction channel, support Assam’s export competitiveness and further strengthen GTAC’s standing in domestic and international markets,” Bihani said.
The tea trade has also expressed appreciation to the Assam Government for the revised policy framework and acknowledged the efforts of the GTAC Chairman towards strengthening the auction platform.
The revised incentives come at a time when Assam’s tea industry is seeking greater support for exports and improved competitiveness amid rising logistics costs. The Rs 3 per kg export incentive was first announced as part of the Assam Budget 2026-27 as a measure aimed at supporting premium Assam CTC tea exports.
The latest notification gives effect to the revised incentive framework and expands the scope of support available to different segments of Assam’s tea industry, while extending the policy period to 2031.
For GTAC, the inclusion of auction-sold CTC tea under the definition of “Quality CTC Tea” is particularly significant as it links the state’s organised tea auction system directly with the new export incentive mechanism.
