The Tea Board India has received a 36% increase in Budget allocation for FY27 at ₹380 crore, the highest among commodity boards, surpassing Coffee, Rubber, and Spices Boards.
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ANI
The Tea Board, under the Ministry of Commerce and Industry, has received the highest budgetary support for FY27 compared with the Coffee Board, Rubber Board and Spices Board.
While the Coffee Board has witnessed a Budget allocation of Rs 285.60 crore for the next financial year, the Rubber Board has received ₹367.52 crore for the period. And, the budgetary allocation for Spices Board stands at ₹156.89 crore for FY27.
For the Tea Board, however, the budget allocation for FY27 has been significantly lower than the original allocation of ₹771.55 crore for the current financial year.
“I am not sure what fund the Tea Board has asked for. But I know that they were short of funds this year. And most of the funds are going for running the Board. Industry has not been given any budgetary support to tide over the continuous unremunerative price it has been fetching leading to a severe financial crisis for the organised industry,” Indian Tea Association Chairman Hemant Bangur told businessline.
Tea Price Challenges
According to the Indian Tea Association (ITA), the “precipitous decline” of tea prices at the auction centres has been threatening the viability and livelihoods of tea growers. The industry has consistently been calling for a minimum sustainable price.
Board Development Focus
Notably, the Tea Board focuses towards development of the tea industry and trade especially in the sphere of production, extension of area under cultivation, improvement in the quality of tea, promotion of cooperative efforts of growers, and research and development efforts in tea.
PMCSPY Scheme Extended
According to budgetary documents for 2026-27, the Pradhan Mantri Cha Shramik Protsahan Yojana (PMCSPY) was introduced for the period of FY25 and FY26 with an outlay of ₹1,000 crore to provide for the welfare of Tea workers, especially women and their children in Assam and West Bengal. The implementation period has been extended further for a year i.e. 2026-27. The scheme is aimed at making need-based interventions in tea garden areas for, inter-alia, strengthening provisions of education and health services to the tea workers.
Production and Export Outlook
The Indian tea industry expects both production and exports to be higher for 2025 compared with 2024. While the output of the brew is likely to grow marginally, export is expected to grow significantly buoyed by higher shipments to Iran, Iraq and China.
The country produced 1284.78 million kg (mkg) of tea in 2024, while it exported 256.17 mkg of the brew during the year.
Published on February 1, 2026
