Economics Sep 21, 2026

CTC Tea, Matcha Exports Get Boost Under Revised Assam Incentives

CTC Tea, Matcha Exports Get Boost Under Revised Assam Incentives
Assam has revised its tea export incentive framework with measures aimed at strengthening the state’s tea industry and improving the competitiveness of its products in international markets. The revised scheme provides additional support for exporters of CTC tea while also bringing Matcha Tea into the incentive structure

Assam has revised its tea export incentive framework with measures aimed at strengthening the state’s tea industry and improving the competitiveness of its products in international markets. The revised scheme provides additional support for exporters of CTC tea while also bringing Matcha Tea into the incentive structure.

The updated incentives are expected to provide greater support to Assam’s tea exporters, particularly those dealing in Single Origin Assam Quality CTC Tea. Under the revised framework, eligible exports can receive an incentive of ₹3 per kilogram for CTC tea, providing exporters with additional financial support as they compete in global markets.

The government has also increased support for Orthodox and speciality teas, recognising the growing demand for differentiated and premium tea products. The inclusion of Matcha Tea marks another significant development, as global demand for matcha has expanded beyond traditional tea markets into beverages, food products and wellness-oriented consumer segments.

The revised policy also includes enhanced working-capital support, which could help tea businesses manage operational requirements and export-related expenses more effectively. For an industry where production, processing, storage and international distribution involve significant costs, improved financial support can play an important role in strengthening the export ecosystem.

The changes are particularly significant for Assam, one of India’s major tea-producing regions and a key contributor to the country’s tea exports. The revised incentives could encourage greater participation from exporters while supporting the expansion of Assam’s tea products into new and existing international markets.

The scheme has been extended until March 31, 2031, providing a longer policy horizon for tea producers, exporters and other stakeholders to plan their business and export strategies.

With CTC tea receiving additional support and Matcha being brought into the incentive framework, Assam’s revised approach signals a broader focus on diversifying tea exports and improving the global market positioning of products associated with the state.

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