Assam Chief Minister Himanta Biswa Sarma on Wednesday said that upcoming free trade agreements (FTAs) with the United Kingdom and the European Union would provide a major boost to Assam’s tea industry by opening new export corridors and improving the sector’s global competitiveness.
Speaking at the World Economic Forum in Davos, Switzerland, Sarma said that while India’s domestic tea market remained strong, access to overseas markets through the proposed FTAs would be a “breakthrough” for Assam’s tea producers.
Highlighting the evolving nature of the industry, Sarma said Assam tea had moved beyond being a raw commodity and was now being positioned as a value-added product with wider applications. “Assam tea is not a raw tea; we have now launched a lot of new products in the market. It has a huge cosmetic value. It has medicinal value and you can also create a new kind of tea by mixing tea with various good Ayurvedic products which we are doing,” he said.
The Chief Minister also drew attention to structural challenges faced by Indian tea planters, particularly the high social costs associated with maintaining labour welfare and infrastructure. He compared the situation with major tea-producing countries such as Kenya and Sri Lanka, where planters do not shoulder similar responsibilities.
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“Cutting cost of production is the main theme that how you can cut the cost. So, now we have adopted the labour code and I think we will be able to give a different kind of cost benefit assessment for our tea industry,” Sarma said.
He noted that the Assam government had adopted a new labour code and rolled out incentive-based policies aimed at reducing production costs while ensuring sustainability of the sector. These measures, he said, were expected to improve profitability for planters and provide long-term stability to the industry.
According to Sarma, the combination of labour reforms, state incentives and expanded market access through FTAs would help Assam’s tea industry compete more effectively with international producers.
Expressing confidence in the sector’s future, the Chief Minister said that once the trade agreements were operationalised, Assam tea would emerge as a key driver of India’s presence in the global tea market. He added that the strength of Assam’s tea industry would play a central role in positioning the “India team” strongly on the international stage.
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