Tea Production Subsidy to Increase: Assam Presents Budget for 2026-27

Tea Production Subsidy to Increase: Assam Presents Budget for 2026-27

📅 July 12, 2026 🏷️ India
The Assam government has presented its budget for the financial year 2026-27. State Finance Minister Jayanta Malla Baruah presented the budget in the assembly, stating that the government's focus is shifting beyond traditional farming toward making agriculture more profitable. Chief Minister Himanta Biswa Sarma emphasized that schemes aimed at increasing farmers' income will continue. This includes strengthening the government procurement systems for paddy, maize, and mustard, providing subsidies for the dairy sector, and expanding support schemes for pregnant women working in tea gardens.

Finance Minister Baruah outlined a vision for an economy capable of handling challenges like floods while promoting high-value crops and creating new opportunities for farmers. The overarching goal is to integrate the agricultural sector with industry, entrepreneurship, and the digital economy.

Highlighting the success of the state's tea garden-friendly policies, CM Sarma noted that traditional tea production has climbed to 8 crore kilograms over the past four years. To further strengthen the tea industry in the global market, the government is preparing to increase the production incentive (subsidy) to Rs 15 per kilogram, alongside an additional export incentive of Rs 3 per kilogram.

### Knowledge-Based and Inclusive Growth
While presenting the budget, Baruah stated that Assam has transitioned from instability to development over the last decade. The government's focus is now on building a knowledge-based, inclusive, and productive economy ensuring equal participation across all regions, including the Brahmaputra Valley, Barak Valley, hill regions, and tea gardens.

### Massive Investment in Infrastructure
CM Sarma also announced that projects worth over Rs 55,000 crore are currently underway to strengthen road, rail, and air connectivity in the state. To further enhance rural connectivity and provide better access to markets, the government will launch the 'Asom Mala 4.0' program over the next five years, under which approximately 800 kilometers of new roads will be constructed.

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