Mamata Banerjee’s Government Requested for Rs 50 Subsidy per Kilo by Indian Tea Association

The Indian Tea Association (ITA) has requested the West Bengal government led by Chief Minister Mamata Banerjee to provide a subsidy of Rs 50 per kilogram of tea produced in the state to help the industry cope with the rising costs and low prices.


The tea industry in West Bengal, which produces around 25% of India’s total tea output, has been facing several challenges in recent years, such as labour unrest, climate change, pest attacks, low productivity, and competition from other tea-producing countries.

According to ITA, the cost of production of tea in West Bengal has increased by 10% in 2021 due to higher wages, fuel prices, and input costs, while the average auction price of tea has declined by 7% compared to 2020.

The ITA also claimed that the tea industry in West Bengal has not received any financial assistance from the state government in the past five years, unlike other tea-growing states such as Assam and Kerala, which have provided various subsidies and incentives to the sector.


In a letter to Mamata Banerjee on January 4, 2024, ITA Chairman Vivek Goenka said that the tea industry in West Bengal is in a “dire situation” and urged her to intervene and provide a subsidy of Rs 50 per kilogram of tea produced in the state for at least one year.

Goenka said that the subsidy would help the industry to improve its cash flow, pay wages and statutory dues, maintain quality standards, and invest in plantations and factories.

He also requested the state government to waive or reduce various taxes and fees levied on the tea industry, such as land revenue, cess, electricity duty, and water charges.

Goenka said that the ITA is ready to work with the state government to implement the subsidy scheme and ensure its proper utilization and monitoring.


The state government has not yet responded to the ITA’s request. However, Mamata Banerjee has been supportive of the tea industry in the past and has announced several welfare schemes for the tea workers, such as housing, education, health care, and social security.

Banerjee has also launched other flagship programmes for the general public, such as monthly income support for women heads of families, student credit card scheme for higher education, and doorstep delivery of ration.



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