Assam Government Policy for Small Tea Growers

On May 30, 2015, the Government of Assam declared a policy imposing a sales tax on small tea growers. This tax levies 25 paisa per kilogram of green leaf, which is indirectly purchased by various tea factories.

The funds collected from this sales tax are dedicated to the development and welfare of small and marginal tea growers, improving the conditions of tea laborers in the unorganized sector, and enhancing the overall quality of tea production.

The policy aims for inclusive growth among small tea growers, the welfare of marginal tea workers, and providing financial support to self-help groups (SHGs), cooperatives, and companies formed by these growers. It also seeks to establish new tea factories through SHGs and cooperatives and upgrade small tea growers from the unorganized to the organized sector by promoting quality enhancement and best practices.