GUWAHATI:
Assam Chief Minister Himanta Biswa Sarma distributed Rs 64.05 crore to 370 tea gardens across the state under the Assam Tea Industry Special Incentive Schemes (ATISIS) 2020 at a function held at Janata Bhawan on March 30.
The ATISIS was formulated by the state government and it was extended for further three years in the state budget 2023-24 to mitigate the adverse impact of the Covid-19 pandemic on the tea industry.
Speaking on the occasion, the chief minister said the tea industry was the backbone of the economy of Assam, contributing to nearly 90per cent of gross export value and on which and providing either direct or indirect employment avenues to more than a million people. It is due to the overwhelming effect of the tea industry on the economy of Assam that the Assam government came up with the ATISIS to help the sector absorb some of the shocks of the deleterious impact of Covid-19.
Elaborating on its components, Sarma said apart from providing interest subvention of 3per cent on working capital loans of tea gardens, the promotion of production of orthodox tea over traditional crush-tear-curl (CTC) tea has also been accorded due attention. It is with this aim that under ATISIS, a subsidy of Rs 10 for per kilogram of orthodox and other special varieties of tea has been incorporated, the chief minister said.
To mark the 200th anniversary of tea production in the state, an additional Rs 2 per kilogram of orthodox tea has been fixed for 2023-24 fiscal, the chief minister added. Moreover, a subsidy of 25per cent shall be provided by the government to tea gardens to set up units for orthodox tea production, the chief minister stated, adding that the government will also forego agricultural income tax accruing from tea gardens for the next three financial years.
He exuded confidence the Assam tea industry would be able to claim its rightful place in the world and domestic tea market in days. He said the government was taking all measures necessary to make the State’s tea industry more resilient than ever before and the industry players must also do the needful for the government efforts to bear fruit.
Sarma further spoke about the numerous initiatives of the state government aimed at the socio-economic empowerment of the tea tribes of the state.
He said the Government of Assam, under the Chief Minister’s Awaas Yojana, would provide financial support of Rs 1.5 lakh each for the construction of the renovation of 10,000 houses of tea garden labourers located within the tea gardens.
Further, funds have been earmarked for the upkeep and maintenance of roads in tea gardens. Smart meters would soon be installed at quarters and residences of tea garden labourers and their outstanding electricity dues to date would be compensated to the Assam Power Distribution Company Limited (APDCL) by the government, he added. The establishment of model schools in tea gardens would help usher in an educational revolution among the members of the educationally backward tea tribe communities, he remarked. Around 25 colleges would also come up in tea garden areas, he added.
He appealed to both the tea estate management and the labourers to remain committed to each other’s wellbeing, as both parties are in a symbiotic relationship and an adverse impact on one leaves a cascading effect on the other.
In her address, Indian Tea Association (ITA) chairperson Nayantara Palchoudhuri expressed her deep gratitude to the Assam government for extending benefits to the tea industry under ATISIS covering orthodox production incentives, the interest subvention of working capital loan, Agricultural income tax holiday and subsidy on investments on orthodox and speciality tea machinery.
Palchoudhuri said the state’s orthodox production in 2022 was approximately 80 million kgs – an increase of around 30 million kgs from the 2020 levels.
She said the increase in orthodox production had an overall positive impact on India’s tea exports which registered an increase from a level of 196 million kgs in 2021 to 226 million kgs in 2022. This increase of 30 million kgs has been contributed by North India where exports have increased from 114 mkgs in 2021 to 144 mkgs in 2022.
She also said the enhancement of orthodox incentive from Rs 7 to 10 and now to Rs 12 per kg would further encourage sustaining quality exports and orthodox production.
The proposed export incentive of Rs 5 per kg under the Assam Tea Policy, 2022 merits consideration for immediate implementation to mitigate the high transportation and terminal handling charges, she added.
Assam finance minister Ajanta Neog, industries minister Bimal Bora, minister for tea tribes welfare Sanjay Kishan, principal secretary to chief minister Samir Kumar Sinha, ITA secretary-general Arijit Raha and secretary of Assam Branch Indian Tea Association (ABITA) Abhijit Sharma also attended the programme.