Lok Sabha Question No. 2756 (UNSTARRED), answered on 2025-12-16
Subject: Domestic Tea Producers
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Pradyut Bordoloi

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT OF COMMERCE

## LOK SABHA UNSTARRED QUESTION NO. 2756 ANSWERED ON 16/12/2025

## DOMESTIC TEA PRODUCERS

## 2756. SHRI PRADYUT BORDOLOI:

Will the Minister of COMMERCE & INDUSTRY ( वाणिज्य एवं उद्योग मंत्री) be pleased to state:

- (a) whether  the  Government  provides  incentives  and  subsidies  to  the  domestic  tea producers of  the  country,  if  so,  the  details  thereof  along  with  the  categories  and criteria for providing such incentives;
- (b) whether the Government plans to establish a minimum sustainable price per KG of produced tea and/or green leaves, if so, the details thereof along with the rate of minimum sustainable price for tea and the rationale behind its determination, if not, the reasons therefor  including  regarding  the  reasoning  behind  not  expanding minimum sustainable price to tea;
- (c) whether the Government plans to shift tea from the ambit of the Ministry of Commerce and Industry to the Ministry of Agriculture and Farmers' welfare, if so, the details thereof including the reasoning behind not expanding minimum sustainable price to tea; and
- (d) whether  the  Government  plans  to  provide  subsidies  for  setting  up  mini-factories exclusively for the small tea growers, if so, the details thereof, if not, the reasons therefor?

## ANSWER

वाणिज्य एवं उद्योग मंत्रालय में राज्यमंत्री (श्री णिणिन प्रसाद) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI JITIN PRASADA)

(a) Tea Board is implementing the 'Tea Development & Promotion Scheme (TDPS)' across the country. Under the scheme, the Tea Board provides support to tea growers for various activities, which inter alia include replantation of old and senile tea bushes, raising of tea nurseries, support for organic certification & conversion, mobilization of small growers into Self  Help  Groups  (SHGs)/  Farmers  Producer  Organizations  (FPOs)  and  conducting trainings and capacity-building workshops for improving production, productivity, and quality of  tea  produced  in  the  country. The  modalities  &  guidelines  of  the  TDPS  scheme  are available on Tea Board's website at https://teaboard.gov.in/pdf/Letter\_to\_ stakeholders\_03\_10\_2024\_combined\_pdf8764.pdf.

(b) Presently, no such proposal is under consideration. However, in order to ensure fair price realization to the tea growers especially the small growers, Tea Board had introduced Price Sharing  Formula  (PSF)  for  fair  sharing  of  sale  proceeds  between  the  grower  and  the manufacturer in a certain ratio based on the cost of production of green leaf and made tea. Further, in order to ensure proper implementation of PSF, prices for green leaf are fixed based on average auction price and notified for each tea district and payment of green leaf price to the growers is monitored by the District Green Leaf Price Monitoring Committees headed by the District Magistrates.

(c) Presently, no such proposal is under consideration of this department.

(d) Under Tea Development & Promotion Scheme, Tea Board provides financial assistance for setting up of mini tea factories by SHGs/FPOs. Financial assistance is provided at the rate of 40% of the actual cost incurred on machinery and civil works, subject to a ceiling limit of Rs 33.00 lakhs per factory (excluding land cost). In case of SC/ ST applicants, financial assistance is provided at the rate of 50% of the actual cost incurred on machinery and civil works, subject to ceiling limit of Rs 50.00 lakhs per factory (excluding land cost).

*****