The Assam state government has taken a significant step to boost the tea industry within its region with the introduction of the Assam Tea Industries Special Incentive Scheme (ATISIS). This initiative aims to promote the production of orthodox and specialty teas, which have garnered high demand in the global market. Recognizing the potential for growth and the current contribution of these tea varieties to the state’s annual production, which stands at approximately 11 percent, the scheme provides financial incentives to tea producers, encouraging them to increase their output of these premium teas.
Understanding ATISIS
The Assam Tea Industries Special Incentive Scheme is a targeted program designed to stimulate the production of orthodox and specialty teas in Assam. These tea varieties are known for their quality and distinct flavors, fetching higher prices on the international market compared to the more common CTC (Crush, Tear, Curl) variety. The ATISIS is structured to provide tangible benefits to tea producers who are willing to focus on these high-value teas. By offering financial support, the scheme aims to make the production process more viable and attractive for tea garden owners and managers.
Interest Subvention on Working Capital Loans
One of the key features of the ATISIS is the provision of a 3 percent interest subvention each year on working capital loans. This financial support is critical for tea producers as it lowers the cost of borrowing, thereby reducing the overall expenses associated with the production of orthodox and specialty teas. Working capital loans are essential for the day-to-day operations of tea gardens, including the procurement of raw materials, payment of wages, and other operational costs. The interest subvention can alleviate some of the financial pressure on producers, enabling them to invest more resources into producing high-quality tea.
Subsidy for Orthodox and Specialty Tea Production
In addition to the interest subvention, the scheme offers a direct subsidy of Rs.7 per kg for the production of orthodox and specialty tea varieties. This subsidy is a direct incentive for producers to increase their output of these teas. By receiving a subsidy for every kilogram produced, tea garden owners can offset some of the costs involved in the production process, such as the careful handling and processing that these teas require. This financial incentive is expected to lead to a higher quantity of orthodox and specialty teas being produced in Assam.
Subsidy for New Machinery
The production of orthodox and specialty teas often requires specialized machinery to maintain the quality and uniqueness of the final product. Recognizing this, the ATISIS includes a provision for a 25 percent subsidy on the purchase of new machines required during the production process. This subsidy can significantly reduce the capital expenditure for tea producers who are looking to upgrade or expand their manufacturing capabilities. With access to better technology and equipment, producers can enhance the efficiency and quality of their tea production, making their products more competitive in the global market.
The Assam Tea Industries Special Incentive Scheme reflects the state government’s commitment to strengthening the tea industry and maximizing its potential. By providing financial incentives for the production of orthodox and specialty teas, the scheme not only benefits individual tea producers but also contributes to the broader economic development of the region. As these premium tea varieties gain more popularity worldwide, initiatives like ATISIS can play a crucial role in positioning Assam as a leading producer of high-quality teas on the international stage.