West Bengal Budget Announces Tea Sector Welfare and Infrastructure Measures

PTI, June 22, 2026, Kolkata :  The BJP government’s first West Bengal budget on Monday unveiled a package of welfare and infrastructure measures for the tea sector, including the creation of a Tea Workers Development Board and implementation of the Pradhan Mantri Cha Shramik Protsahan Yojana, while rolling back the quantum of garden land that can be commercially used under tea tourism policy to 15 per cent.

Presenting the budget in the Assembly, Finance Minister Swapan Dasgupta recognised that tea workers in north Bengal continue to face multiple challenges, including inadequate healthcare facilities, food insecurity and delayed wage payments.

“To address this in a holistic way, I propose to establish a Tea Workers Development Board. The board will oversee the implementation of various welfare schemes for the tea garden workers regarding health facilities, modern housing, and distribution of other social welfare benefits,” Dasgupta said.

The minister also announced that the state government would implement the PMCSPY in collaboration with the Centre to improve the living standards of tea garden workers and their families.

This will unlock Rs 314 crore central budget exclusively for the state’s tea garden workers in the state, deputy Tea Board chairman C Murugan had said earlier.

According to the budget speech, the scheme will provide a comprehensive package of welfare measures covering social security, healthcare, housing, educational support, skill development, nutrition assistance and livelihood diversification.

Dasgupta said the government would work closely with the tea industry to address issues related to closed tea gardens and the sector’s overall health.

In a significant policy shift, the government proposed reducing the share of tea estate land that can be diverted for tea tourism and other commercial activities from 30 per cent to 15 per cent.

The previous Trinamool Congress government had proposed increasing the permissible diversion limit to 30 per cent from 15 per cent in its interim budget after former Chief Minister Mamata Banerjee announced it at the last investment summit.

“Concerns have been raised by tea garden workers and other marginalised groups living in tea garden areas against this policy on account of environmental issues. In order to maintain ecological balance and preserve cultural heritage in tea garden areas, I propose to reduce the quantum of land that tea gardens can commercially utilise for tea tourism and other business activities to 15 per cent,” Dasgupta said.

Industry veteran Harsh Neotia said the proposed reduction was unlikely to have a major impact on most tea estates.

“In most tea gardens there will be no impact as 15 per cent would be enough for any standard-sized garden. It may create some issues for very small tea gardens,” Neotia told PTI.

The Tea Association of India (TAI) welcomed the overall thrust of the budget towards supporting the sector, though it noted that direct financial support measures sought by the industry were absent.

TAI secretary general P. K. Bhattacharjee said the industry had sought interest subvention on working capital loans, subsidy on plant and machinery and special power tariffs in its pre-budget memorandum submitted in January.

“Financial support in the form of financial packages would have made an immediate impact on the fortunes of the industry. However, the overall thrust laid by the present government on the improvement of infrastructure and welfare measures is a step in the right direction,” Bhattacharjee said.

He said the establishment of the Tea Workers Development Board and implementation of PMCSPY would strengthen healthcare, housing and social security coverage for tea garden workers.

The industry body also welcomed the government’s focus on reviving closed tea gardens, developing tea garden infrastructure and setting up a common tea processing centre at Siliguri.

Bhattacharjee further noted that the proposed Tea Processing Zone to be developed in collaboration with the Syama Prasad Mookerjee Port, with facilities such as tea processing centres, packaging units, auction houses and trade infrastructure, could support the long-term viability of the sector.

“The combined impact of all the measures should augur well for the Tea Industry both from its existential and viable aspects,” he said.