Darjeeling tea industry seeks Rs 113 crore aid from govt as output hits 35-year low

The proposed Rs 113-crore annual package covers support for orthodox tea production, working capital interest subvention, transport subsidies, mechanisation, social security for workers, rejuvenation of ageing tea areas and factory modernisation.The industry body termed the situation critical and called for urgent and targeted intervention to safeguard Darjeeling tea. (Representative image)With Darjeeling tea production falling to 5.6 million kg in 2025, the Indian Tea Association (ITA) has sought an annual financial support package of around Rs 113 crore from the West Bengal government to revive the ailing industry.In a White Paper submitted to the state government, the ITA highlighted the steep decline in production from 14.49 million kg in 1990 to 5.6 million kg in 2025. The association attributed the downturn to climate change, ageing tea bushes, rising imports from Nepal, declining exports and escalating production costs.Terming the situation critical, the industry body called for urgent and targeted measures to protect the future of Darjeeling tea.The proposed Rs 113-crore annual package includes support for orthodox tea production, interest subvention on working capital, transport subsidies, mechanisation, workers' social security, rejuvenation of ageing tea plantations and modernisation of factories. The ITA has also sought seasonal industry status for Darjeeling tea plantations.For the Dooars and Terai tea sectors, the association submitted a separate White Paper highlighting challenges such as low productivity, financial stress, inadequate infrastructure and labour welfare concerns. It proposed dedicated revival packages, integration of plantations with government welfare schemes, promotion of tea tourism and diversification, besides regulatory reforms aimed at improving competitiveness and attracting long-term investment.For both regions, the ITA has sought market-oriented measures, including a Minimum Sustainable Price for Made Tea and a Minimum Import Price for orthodox tea to check low-priced imports. It has also called for rationalisation of GST on ready-to-drink tea products and enhanced support under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for tea exports.The association said the crisis in the tea sector extends beyond plantations, affecting employment, rural livelihoods and the wider economy of North Bengal's tea-growing districts.It urged the state government to implement time-bound and coordinated policy measures based on the recommendations outlined in the two White Papers.Over the past month, an ITA delegation comprising industry leaders SS Sikand, Atul Rastogi, Hemant Bangur, Bharat Bajoria, Nayantara Palchoudhuri and others held separate meetings with state Industry Minister Tapas Roy, Finance Minister Swapan Dasgupta and Chief Minister's Advisor Subrata Gupta to press for the demands.- EndsPublished By: India Today Web Desk Published On: Aug 26, 2026 22:29 IST