The tea industry in West Bengal has largely welcomed the Suvendu Adhikari government’s maiden Budget for 2026-27, describing it as a positive and development-oriented roadmap for a sector grappling with rising production costs, shrinking margins and the persistent challenge of closed tea gardens.
According to industry stakeholders, the state Budget’s emphasis on tea workers’ welfare, infrastructure development, value addition, processing facilities and tourism promotion reflects a recognition of the tea sector’s crucial contribution to the state’s economy.
However, they expressed hope that the government would complement these initiatives with direct financial support measures to strengthen the industry’s long-term viability.
Welcoming the state budget, Arijit Raha, Secretary General of the Indian Tea Association (ITA), said the proposals acknowledge the strategic importance of the tea industry to West Bengal’s economy and livelihoods.
“The West Bengal Budget 2026-27 is a visionary and development-oriented Budget that acknowledges the strategic importance of the tea sector to the State’s economy and livelihoods. We welcome the proposed constitution of the Tea Workers Development Board, implementation of the Pradhan Mantri Cha Shramik Protsahan Yojana for tea garden workers, development of tea and agro-processing clusters in Siliguri and Darjeeling under the Rs 1,000 crore cluster rejuvenation programme, and the Rs 100 crore allocation for improving tea garden infrastructure and establishing a Common Tea Processing Centre at Siliguri,” Raha said.
Raha further noted that the proposed Tea Processing Zone in collaboration with Syama Prasad Mookerjee Port and the government’s initiative to promote Darjeeling’s tea heritage through heritage mapping of tea bungalows could significantly enhance value addition, market access and the global visibility of Indian tea.
Raha also welcomed the government’s commitment to addressing the issue of closed tea gardens but expressed concern over the proposal to reduce permissible commercial utilisation of tea estate land under the Tea Tourism Policy from 30 per cent to 15 per cent.
“While preserving ecological balance and cultural heritage is important, future investment and diversification opportunities in tea-growing regions should not be constrained,” he said, adding that the association remains hopeful that exemptions from Green Leaf Cess and Agricultural Income Tax announced in the Interim Budget would continue.
Echoing similar sentiments, P.K. Bhattacharjee, Secretary General of the Tea Association of India (TAI), said the state Budget reflects the government’s intent to support an industry facing severe economic pressures.
“Against the backdrop of an ever-sliding future for the tea industry in West Bengal, where the cost of production increasingly outstrips price realisation, the Tea Association of India had submitted a pre-Budget memorandum seeking financial support measures such as interest subvention on working capital loans, subsidies on plant and machinery, and a special power tariff for the tea industry,” Bhattacharjee said.
While noting that direct financial packages would have provided immediate relief, he described the budget’s focus on infrastructure development and welfare measures as a step in the right direction.
Bhattacharjee highlighted the proposed Tea Workers Development Board, implementation of the Pradhan Mantri Cha Shramik Protsahan Yojana, support for revival of closed tea gardens, development of tea garden infrastructure, and establishment of a Common Tea Processing Centre in Siliguri as significant initiatives.
He also welcomed the announcement of a dedicated Tea Processing Zone in collaboration with Syama Prasad Mookerjee Port, which is expected to include processing facilities, packaging units, an auction centre and world-class trade infrastructure.
“The combined impact of these measures should augur well for the tea industry’s sustainability and long-term viability,” he said.
Bijoy Gopal Chakraborty, President of the Confederation of Indian Small Tea Growers Association (CISTA), also hailed the Budget’s focus on the tea sector, particularly the welfare and infrastructure initiatives aimed at strengthening North Bengal’s tea economy.
“The formation of a Tea Garden Welfare Board, introduction of the Rs 314 crore Pradhan Mantri Cha Shramik Protsahan Yojana, development of a Spice Hub in North Bengal, and sanction of Rs 100 crore for a Common Tea Processing Unit at Siliguri, along with modern tea processing and packaging infrastructure in the Syama Prasad Mukherjee Port area, will definitely boost the state’s tea industry, which contributes around 32 per cent of national tea production,” Chakraborty said.
He expressed optimism that the government would announce additional measures in the coming months to further support tea growers and strengthen the sector’s competitiveness.
Industry observers believe that if implemented effectively, the Budget proposals could provide a much-needed boost to the tea sector, improve worker welfare, encourage investment and help revive the fortunes of one of West Bengal’s most important industries.