Tea Development and Promotion Scheme Boosts Assam Tea Sector

Tea Development & Promotion Scheme Accelerates Growth of Assam’s Tea Ecosystem

The Government of India is advancing the Tea Development & Promotion Scheme (TDPS) across the country, with Assam receiving targeted assistance to improve productivity, strengthen value-chain linkages and empower small tea growers. Implemented by the Tea Board, the scheme focuses on modernising plantations, enhancing tea quality and boosting India’s global tea footprint.

Core Goals of the TDPS Initiative

TDPS aims to upgrade the entire tea production cycle—from planting to processing—through structured financial and technical support. A major thrust of the scheme is to organise small tea growers into SHGs, FPOs and FPCs, enabling collective bargaining, improved processing capabilities and better participation in value addition. Support for establishing mini tea factories and training programmes also forms a vital part of the scheme’s modernization agenda.

High Financial Utilisation in Assam

Between 2021-22 and 2025-26 (up to 31 October 2025), Assam received an allocation of ₹152.76 crore under various Tea Board schemes, of which ₹150.20 crore has already been utilised. This high utilisation rate reflects strong implementation and sustained engagement with the state’s tea-growing communities.

Key Achievements Under TDPS in Assam

Replantation activities were undertaken across 437.42 hectares after decades-old bushes began declining in productivity. The scheme facilitated the formation of 318 SHGs, 143 FPOs and 26 FPCs, alongside the establishment of 31 mini tea factories to aid decentralised processing. Additional initiatives included converting 30.32 hectares to organic cultivation, creating 30 farm field schools and holding 1,343 capacity-building sessions. During the same period, India’s tea exports—including Assam Tea—grew from USD 751.07 million (2021-22) to USD 923.89 million (2024-25), achieving a CAGR of 7.15%.

Exam Oriented Facts

• ₹150.20 crore utilised in Assam under TDPS (up to Oct 2025).

• 318 SHGs, 143 FPOs, 26 FPCs created for small growers.

• 31 mini tea factories established; 437.42 ha replanted.

• Tea exports recorded 7.15% CAGR from 2021-22 to 2024-25.

DMEO Evaluation and Policy Refinements

A DMEO evaluation submitted in May 2023 concluded that TDPS schemes were performing satisfactorily—particularly in plantation development, SHG/FPO formation and support for factory creation. Its recommendations on replantation incentives, brand promotion, Good Agricultural Practices and enhanced training have been incorporated into the revised TDPS for 2023-24 to 2025-26, as confirmed by Minister of State for Commerce and Industry Jitin Prasada.