Subsidy for Promoting Indian Tea

Subsidy for Promoting Tea of Indian Origin

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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 retained 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 Licensing 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which functioned respectively under the Central Tea Board Act, 1949 and the Indian Tea Control Act, 1938 which were repealed.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 regulation of tea cultivation and export of tea as required by the International Tea Agreement then in force, and 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 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 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 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. Interested exporters are required to apply in advance to Tea Board in the prescribed application form along with a covering letter on company letterhead.

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