The Indian government has announced an 82 percent increase in funds for the Tea Development and Promotion Scheme, allocating Rs 528.97 crore for the next two financial years. The scheme aims to support the development of enhanced tea varieties to boost production and quality.
Objectives of the Scheme
Amardeep Singh Bhatia, Additional Secretary in the Department of Commerce, outlined the key objectives of the scheme. It includes the establishment of 800 self-help groups and 330 farmer-producer organizations (FPO) during the 2024-26 period. The allocation for this purpose has been raised from Rs 2.7 crore to Rs 105.5 crore.
Increased Outlay
Bhatia emphasized the substantial increase in the scheme’s outlay, from Rs 290.81 crore to Rs 528.97 crore for the next two financial years. This boost in funding aims to promote Indian tea both domestically and internationally. Additionally, funds for tea promotion have been raised to Rs 72.42 crore.
Value Addition Initiatives
To encourage value addition in the tea sector, the government has allocated Rs 40 crore for establishing blending and packaging units. The objective is to boost exports, particularly in value-added segments, and enhance consumption of high-quality tea products.
Technological Interventions
A new component focusing on technological interventions for tea plantation has been introduced. This includes initiatives such as precision farming, drone surveillance, traceability, blockchain, and digitization of Tea Board activities. These measures aim to modernize tea cultivation practices and improve efficiency.
Export Trends
Despite being the third largest exporter of tea globally, India witnessed a slight decline in tea exports by over 4 percent to USD 673 million during April-January of the current fiscal year. The government’s increased investment in tea development and promotion seeks to address challenges in the sector and further strengthen India’s position in the global tea market.
