What exactly is a producer company and who can form one?

A producer company is a hybrid corporate entity in India designed to benefit farmers, artisans, and producers by combining elements of cooperatives and companies. It can be formed by a minimum of ten individuals, each of whom must be a producer, to enhance productivity and marketability of their primary produce.

What are some advantages of forming a producer company?

Forming a producer company offers several benefits, including enhanced credibility with stakeholders, limited liability for its members, and access to specific tax benefits. Furthermore, it enables producers to collectively negotiate better market prices and secure financial resources more efficiently.

What are the steps involved in setting up a producer company?

The process to establish a producer company involves meeting member requirements, preparing valid identification and address documents for directors and shareholders, and choosing a unique company name. Key documents such as the Articles of Association and Memorandum of Association must be submitted for approval, after which a Certificate of Incorporation is granted upon approval.

What challenges do producer companies face despite their benefits?

Producer companies often encounter challenges, including limited awareness among potential members about their benefits and operational procedures. Additionally, the lack of business and management skills can be a barrier, and accessing traditional finance channels has been historically difficult though efforts are being made to improve this with dedicated financial solutions.

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Published on: Jun 24, 2026

Subsidy For Promoting Tea Of Indian Origin

In order to help Indian exporters in their overseas marketing of tea of Indian origin, on a sustained basis, the Tea Board operates a brand support scheme. Since the scheme is for promoting tea of Indian origin, it is mandatory for companies wanting to avail of the scheme to be marketing 100% Indian tea in packets carrying Indian tea logo or any of speciality logos after complying with requirements for logo usage.

Tea Industry in India

The Indian tea industry has expanded and grown tremendously over the years, making India the largest grower and producer of tea in the world. In terms of consumption, export and production of tea, India is the world leader. India accounts for 31% of the global production of tea and has regained leadership position in the tea industry for the last 150 years. The total turnover of this industry is estimated to be greater than Rs.10,000 crores.

Tea Board in India

Tea is one of the industries, which by an Act of Parliament comes under the control of the Union Government of India. The genesis of the Tea Board India dates back to 1903 when the Indian Tea Cess Bill was passed. The Bill provided for levying a cess on tea exports - the proceeds of which were to be used for the promotion of Indian tea both within and outside India. The present Tea Board set up under section 4 of the Tea Act 1953 was constituted on 1st April 1954. It has succeeded the Central Tea Board and the Indian Tea Licencing Committee which functioned respectively under the Central Tea Board Act, 1949 and the Indian Tea Control Act, 1938 which were repealed. The activities of the two previous bodies had been confined largely to the regulation of tea cultivation and export of tea as required by the International Tea Agreement then in force, and the promotion of tea Consumption.

Scheme for Promoting Tea of Indian Origin

The scheme for promoting tea of Indian origin covers all Indian companies or exporters marketing Indian brand tea in packets of less than 1 kg. The brand should be owned by the exporter. The scheme for promoting tea of Indian origin extends financial assistance as under:

Financial assistance for tea rooms/boutiques: Reimbursement for lease or rental charges of floor or display area subject to a maximum limit - Rs.12 lakh per annum.
- For year 1, reimbursement of 75% of a lease or rental charges is provided;
- For year 2, reimbursement of 50%of lease or rental charges is provided;
- For year 3, reimbursement of 25%of lease or rental charges is provided;
Financial assistance for the promotional campaign: Reimbursement of 25% of cost subject to a ceiling of Rs.50 lakh per annum.
Financial assistance for displays in departmental stores or in-store demonstration or promotion: Reimbursement of 50% of the display and shelf rental cost as well as the in-store promotion or maximum limit - Rs.25 lakh per annum per country.
Financial assistance for product literature: Reimbursement of 25% of total cost subject to a ceiling of Rs.50 lakh per annum per market.

Eligibility for Tea Promotion Scheme

All Indian registered exporters exporting value-added tea would be eligible if the brand for which support is requested is owned by them. All registered exporters holding permanent exporter’s license and submitting regular monthly export returns to Tea Board may apply. The exporters can apply in advance to Tea Board in the prescribed application form along with a covering letter on company letterhead.

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Frequently Asked Questions

Common questions about Subsidy for Promoting Indian Tea.

The purpose of the Tea Board's brand support scheme is to help Indian exporters in their overseas marketing of tea of Indian origin on a sustained basis. The scheme provides financial assistance to companies marketing 100% Indian tea in packets carrying Indian tea logo or any of the specialty logos.

The scheme provides financial assistance in the form of reimbursement for lease or rental charges of floor or display area (up to Rs.12 lakh per annum), promotional campaigns (25% of cost subject to a ceiling of Rs.50 lakh per annum), displays in departmental stores or in-store demonstrations (50% of cost up to Rs.25 lakh per annum per country), and product literature (25% of total cost up to Rs.50 lakh per annum per market).

All Indian registered exporters exporting value-added tea are eligible for the Tea Promotion Scheme if the brand for which support is requested is owned by them. Additionally, registered exporters holding a permanent exporter's license and submitting regular monthly export returns to the Tea Board may apply.

The Indian tea industry is the largest grower and producer of tea in the world, accounting for 31% of the global production of tea. India has regained its leadership position in the tea industry for the last 150 years, and the total turnover of this industry is estimated to be greater than Rs.10,000 crores.

The Tea Board in India is a statutory body established under the Tea Act of 1953. It is responsible for the control and regulation of the tea industry in India, including the promotion of tea consumption, both within and outside India.

Exporters can apply in advance to the Tea Board using the prescribed application form along with a covering letter on their company letterhead.

To be eligible for the financial assistance for tea rooms/boutiques, the exporter can claim reimbursement for lease or rental charges of floor or display area, subject to a maximum limit of Rs.12 lakh per annum. The reimbursement percentage varies from 75% in the first year to 50% in the second year and 25% in the third year.

Yes, there is a ceiling of Rs.50 lakh per annum for the financial assistance provided for promotional campaigns, which is reimbursed at 25% of the cost.

The financial assistance for product literature aims to support exporters in creating marketing materials for their products. Exporters can claim reimbursement of 25% of the total cost, subject to a ceiling of Rs.50 lakh per annum per market.

The Tea Promotion Scheme helps Indian exporters in their overseas marketing efforts, promoting tea of Indian origin on a sustained basis. By supporting brand promotion, product literature, and in-store displays, the scheme aims to enhance the global presence and competitiveness of the Indian tea industry.