The Tea Association of India (TAI) has welcomed the government’s decision to extend the exemption of agricultural income tax for the tea industry until 31 March, 2026, as announced in the state Budget for FY 2025-26. The move is seen as a relief for the sector, which has been grappling with financial challenges.

The Industry body also acknowledged the ‘Nadi Bandhan’ scheme, which aims to integrate river-centric initiatives and improve the livelihoods of communities living along riverbanks in North Bengal. Given that many tea estates are located in these regions, TAI emphasised the need for the scheme to effectively address the concerns of tea workers and estate owners.

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Additionally, the Budget has allocated Rs 200 crore to combat river erosion—a persistent issue in North Bengal that has led to significant loss of tea garden land. TAI expressed optimism that this provision would help protect critical riverbanks and mitigate further damage to tea estates.

However, the association pointed out that the tea industry, currently under severe financial stress, would have benefited from direct fiscal support. TAI stressed the need for measures such as interest subvention on working capital loans, as high borrowing costs continue to burden tea gardens. The industry body urged the state government to consider additional relief measures to ensure the long-term sustainability of the sector.

Reacting to the state Budget, Arijit Raha, secretary general of the Indian Tea Association, expressed gratitude for the extension of the agriculture income tax exemption until 2026.

On the other hand , Darjeeling MP Raju Bista has strongly criticised the state Budget, calling it “anti-north Bengal” and a severe setback to the region’s development. He expressed disappointment over the stark disparity in allocations, noting that while Rs 5,602.29 crore was earmarked for minority affairs and madrasah, only Rs 866.26 crore (0.28 per cent of the total Rs 3.08 lakh crore budget) was allocated to the North Bengal Development Department.

Mr Bista highlighted the recurring neglect of north Bengal, pointing out that announcements like the Rs 100 crore for Cha Sundari projects remain unfulfilled year after year. He emphasised that despite the region’s vast potential and pressing needs, there were no significant allocations for Darjeeling, Kalimpong, Siliguri, or other parts of north Bengal.

“The TMC government is collecting thousands of crores in revenue from our region but allocating a paltry 0.28 per cent for its development. This is outright discrimination and a colonial-style exploitation of North Bengal,” Mr Bista stated.