GUWAHATI: The Assam government has proposed to provide incentives to matcha tea producers as part of its 2026–27 Budget, aiming to strengthen the state's presence in the premium tea market.
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Presenting the Budget in the Assam Legislative Assembly on Friday, July 10, Finance Minister Jayanta Malla Baruah announced that matcha tea will now be included under the eligible category of orthodox and specialty teas in the Assam Tea Industries Special Incentives Scheme (ATISIS).
Matcha, a premium green tea made by finely grinding specially shade-grown tea leaves into a vibrant green powder, has emerged as one of the fastest-growing specialty tea categories globally due to rising demand for wellness products, functional beverages and premium tea experiences.
The minister highlighted the steady growth of Assam's orthodox tea sector, stating that production has increased from 4.39 crore kg in 2021–22 to nearly 8 crore kg in 2025–26, marking a growth of over 80 per cent in four years.
He also noted that Assam has made significant progress in value addition through the successful production of premium matcha tea. The first batch of Assam-produced matcha was recently sold at the Guwahati Tea Auction Centre for nearly ₹3,000 per kg.
To further encourage production, the government has proposed increasing the production subsidy for orthodox and specialty teas from ₹10 per kg to ₹15 per kg under ATISIS.
In addition, a new subsidy of ₹3 per kg has been proposed for export-oriented, premium-quality Assam CTC tea exported through recognised export channels, with the aim of boosting foreign exchange earnings and enhancing the global competitiveness of Assam tea.