The Tea Board India has received a 36% increase in FY27 budget allocation of ₹380 crore, the highest among commodity boards, surpassing Coffee, Rubber and Spices Boards. | Photo credit: ANI
The Tea Board, under the Ministry of Commerce and Industry, has received the highest budget support for FY27 compared to 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 is ₹156.89 crore for FY27.
However, for the Tea Board, the budgetary allocation for FY27 has been significantly lower than the original allocation of ₹771.55 crore for the current financial year.
“I am not sure which fund the Tea Board has asked for. But I know they were short of funds this year. And most of the funds are going towards running the Board. The industry has not been given any budgetary support to overcome the continuous unprofitable price it has been fetching, which has led to a severe financial crisis for the organized industry,” Hemant Bangur, president of the Indian Tea Association, told businessline.
Tea Prize Challenges
According to the Indian Tea Association (ITA), the “steep decline” in tea prices at auction centers is threatening the viability and livelihood of tea growers. The sector has consistently called for a minimum sustainable price.
Focus on board development
The Tea Board focuses on the development of the tea industry and trade, especially in the areas of production, expanding the area under cultivation, improving the quality of tea, promoting cooperative efforts of growers and research and development efforts in the field of tea.
PMCSPY scheme expanded
According to Budget documents for 2026-2027, 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 cater to the welfare of tea workers, especially women and their children in Assam and West Bengal. The implementation period has been extended for another year, namely 2026-27. The program aims to implement needs-based interventions in tea garden areas, including strengthening education and healthcare facilities for the tea workers.
Production and export prospects
The Indian tea industry expects both production and exports to be higher in 2025 than in 2024. While production of the brew is likely to grow marginally, exports are expected to grow significantly, thanks to higher exports to Iran, Iraq and China.
The country produced 1284.78 million kg (mkg) of tea in 2024, while it exported 256.17 million kg of tea during the year.
Published on February 1, 2026
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