Guwahati, Feb 20 (KNN) The Assam Branch Indian Tea Association (ABITA) has urged the state government to continue the Assam Tea Industries Special Incentives Scheme (ATISIS), which is set to expire in March 2023 for another five years.

ABITAchairman Sailendra Kumar Goswami on Saturday said, “As the crisis facing the tea industry is far from over, we will be grateful if the benefits under ATISIS with a larger outlay is allowed to continue for at least another five years.”

The ATISIS was launched by Assam Chief Minister Himanta Biswa Sarma on July 4, 2021, to boost the production of orthodox/speciality tea in the state by giving incentives to tea gardens.

Under this scheme, an interest subvention of 3 per cent is provided on a working capital loan per annum subject to a maximum of Rs 20 lakh.

The Assam government also provides an orthodox/speciality tea production subsidy of Rs 7/kg to tea gardens and a 20 per cent subsidy for orthodox and speciality tea units for plant & machinery subject to a maximum of Rs 30 lakh.

 “The tea industry was granted an agricultural income tax holiday for three financial years, the tenure of which shall expire on March 31, 2023. We would request the Assam government to extend the agricultural income tax holiday for a further period of three years,” Goswami said at the general meeting held at Gymkhana Jorhat.

The tea industry in 2022 made a production of approximately 1,340 million kgs in the country with Assam’s contribution being approximately 677 million kgs, which is near about 50 per cent of all India’s production.

“Although the production of tea has been on an increasing trend, the price realization has remained stagnant over the last few years which has been a matter of concern,” Goswami said.

“The other concern for the industry is the ever-increasing cost of production. The tea industry presently is under severe financial stress as the cost of production which is constantly increasing has not been compensated by the price realized for the made teas. The high cost of production and un-remunerative prices is one of the main challenges confronting the Assam tea industry,” he said.

He added that the Assam Tea Policy, though still in its infancy, is a ray of hope for all the stakeholders.

The meeting was attended by B Kalyan Chakravarthy, principal secretary (labour welfare); Arunita PhukanYadav, executive director, Tea Board India, North Eastern Zonal Office; Nayantara Palchoudhuri, chairperson, ITA, Kolkata; Atul Asthana, vice-chairman, ITA, Kolkata; Arijit Raha, secretary-general, ITA, Kolkata; Paban Singh Ghatowar, president, Assam Chah Mazdoor Sangha (ACMS) and Rajen Bora, president, All Assam Small Tea Growers Association (AASTGA).  (KNN Bureau)