Impact of the Tea Development & Promotion Scheme on Assam's Tea Industry

Overview of the Tea Development & Promotion Scheme

The Government of India has launched the Tea Development & Promotion Scheme (TDPS) across the nation, with a specific focus on Assam. This initiative aims to enhance the production, quality, and value chain for small tea growers in the region. The Tea Board leads this program, which is designed to modernize tea plantations, boost exports, and empower grassroots producer groups.

Main Objectives of the TDPS Scheme

The TDPS aims to achieve several key objectives:

• Increase tea productivity and improve market quality.
• Enhance export competitiveness of Indian tea.
• Mobilize small tea growers into Self-Help Groups (SHGs) and Farmer Producer Organizations (FPOs) to engage in processing and value addition.
• Provide assistance for establishing mini tea factories and implementing capacity-building programs.

Financial Allocation and Utilization in Assam

Between the fiscal years 2021-22 and 2025-26 (up to October 31, 2025), the Tea Board allocated ₹152.76 crore to Assam, with ₹150.20 crore already utilized. This allocation demonstrates a strong implementation rate and continuous support for local growers.

Key Activities and Outcomes in Assam

During this period, Assam has seen significant developments:

• Replantation efforts covered 437.42 hectares.
• Formation of 318 SHGs and 143 FPOs, along with 26 Farmer Producer Companies (FPCs).
• Establishment of 31 mini tea factories.
• Transition of 30.32 hectares to organic cultivation.
• Setup of 30 farm field schools and 1,343 capacity-building programs.

Tea exports from India, including Assam Tea, increased from USD 751.07 million in 2021-22 to USD 923.89 million in 2024-25, reflecting a compound annual growth rate (CAGR) of 7.15%.

Exam-Oriented Facts

• ₹150.20 crore was utilized in Assam under TDPS until October 2025.
• 318 SHGs, 143 FPOs, and 26 FPCs were established in the state.
• 31 mini tea factories were set up, and 437.42 hectares were replanted.
• Tea exports grew at a CAGR of 7.15% from 2021-22 to 2024-25.

Findings of DMEO Evaluation

An evaluation conducted by the Development Monitoring and Evaluation Office (DMEO) of NITI Aayog, submitted in May 2023, underscored the successful implementation of plantation schemes. It noted substantial progress in forming SHGs and FPOs, as well as in establishing tea factories. Recommendations, including support for replantation, brand promotion, broader adoption of Good Agricultural Practices, and capacity building, were integrated into the revised TDPS for 2023-24 to 2025-26, as stated by Jitin Prasada, Minister of State for Commerce and Industry.

Frequently Asked Questions (FAQs)

Q1. What is the Tea Development & Promotion Scheme?
Answer: The TDPS is an initiative by the Government of India aimed at enhancing the production, quality, and exports of tea, particularly focusing on small tea growers in Assam.

Q2. How much funding has Assam received under the TDPS?
Answer: Assam has received ₹152.76 crore under the TDPS, with ₹150.20 crore utilized by October 2025 to support local tea growers.

Q3. What are the key outcomes of the TDPS in Assam?
Answer: Significant outcomes include the formation of 318 SHGs, 143 FPOs, establishment of 31 mini tea factories, and replantation across 437.42 hectares.

Q4. How did tea exports from Assam change from 2021 to 2025?
Answer: Tea exports, including Assam Tea, rose from USD 751.07 million in 2021-22 to USD 923.89 million in 2024-25, highlighting a CAGR of 7.15%.

Q5. What did the DMEO evaluation reveal about the TDPS implementation?
Answer: The DMEO evaluation indicated satisfactory progress in the implementation of plantation schemes and the establishment of SHGs and FPOs, with recommendations for further improvements.

UPSC Practice MCQs

Question 1: What is the primary objective of the Tea Development & Promotion Scheme?
A) Increase tourism in Assam
B) Enhance tea production and exports
C) Promote organic farming exclusively
D) Support only large tea estates
Correct Answer: B

Question 2: How much funding was allocated to Assam under the TDPS from 2021 to 2026?
A) ₹100 crore
B) ₹152.76 crore
C) ₹200 crore
D) ₹75 crore
Correct Answer: B