Union Budget Impact on Tea Industry: Mixed Reactions

Kolkata, Jul 23 (PTI) The budget for 2024-25 presented by Union Finance Minister Nirmala Sitharaman in Parliament on Tuesday evoked mixed reactions from the tea industry.

The Tea Association of India (TAI), a leading producer's body, said that the scheme 'Pradhan Mantri Shramik Protsahan Yojana (PMCSPY) devised for the welfare of tea workers, especially women and their children in Assam and West Bengal, is a welcome move.

Secretary of the Association of Tea Auctioneers (ATA) Sujit Patra, however, said apparently there is nothing for the tea industry in the budget for 2024-25.

The government has earmarked Rs 1000 crore for implementing the scheme, TAI said, adding that it is aimed at making need-based interventions in the tea growing areas for strengthening provisions of education and health services to the workers.

The proposals to provide resilience to the agriculture sector will help the tea industry, TAI said.

The government has particularly emphasised the need for employment generation and skilling from which the tea industry will benefit immensely, the association said.

Development of digital and banking infrastructure in the tea growing areas has been a consistent demand of the industry for several years.

"Announcement of setting up bank branches in the northeastern region is a positive step towards that direction" TAI said.

The continuation of PMAY (Pradhan Mantri Awas Yojana) and PMGSY (Pradhan Mantri Gram Sadark Yojana) will surely benefit the rural population including those residing within the tea gardens, the association said.

ATA Secretary Sujit Patra, however, said that the industry expected some assistance in boosting exports by providing higher RoDTEP rates, which did not find a place in the budget.

There was also some expectation of some financial support to commodity boards like the Tea Board for sustainable development and promotional exercises were also not met, Patra said. PTI dc