The Chief Minister's Office of Assam announced on Friday, 10 July 2026 that the state's Assam Tea Industry Support and Incentive Scheme (ATISIS) will be expanded to include Matcha Tea under the orthodox and specialty tea category, a move aimed at encouraging value addition and boosting exports. The announcement came as part of the #AssamBudget2026 highlights shared by the official CMO account. The post stated that 'support for tea growers will be expanded under ATISIS, with Matcha Tea now eligible under the orthodox and specialty tea category to encourage value addition and exports,' and noted that 'orthodox tea production in Assam has grown by over 80% in four years.'

Context

Assam is India's largest tea-producing state, accounting for more than half of national output. The state has in recent years pivoted away from bulk CTC (Crush, Tear, Curl) tea toward higher-value orthodox and specialty grades, which command significantly better unit prices in international markets. The inclusion of Matcha — a finely ground, shade-grown green tea — under ATISIS marks a notable expansion of this strategy into an entirely new product category. Matcha has seen surging global demand, particularly in East Asia, Europe, and North America, driven by health-conscious consumer trends. By making it eligible under the orthodox and specialty tea incentive framework, the Assam government is signalling intent to position the state as a source of premium, export-ready specialty teas beyond its traditional identity as a black tea belt.

Policy Backdrop

ATISIS is a state scheme that provides financial incentives and technical support to tea growers for production improvements and value addition. Since 2022, successive Assam government budgets have progressively widened the scheme's scope and deepened its incentives for orthodox tea, with the stated goal of raising farmer incomes and improving export competitiveness. The over 80 percent growth in orthodox tea production over four years cited in the post reflects the cumulative impact of these earlier interventions, including garden-level replanting and processing upgrades by tea estates that responded to state incentives. This trajectory mirrors efforts at the national level by the Tea Board of India and the commerce ministry to diversify Indian tea offerings and reduce dependence on commodity-grade bulk exports.

Stakeholders and Impact

Tea growers — both large estates and small growers — stand to benefit directly from the expanded ATISIS coverage, as Matcha production requires specific cultivation techniques, including shading, that can add significant value per kilogram compared to conventional CTC output. Tea exporters operating out of Assam could gain a new, high-margin product line to offer international buyers. For small and marginal growers, however, the transition to Matcha cultivation involves upfront investment in shading infrastructure and processing equipment. The extent to which ATISIS incentives will offset these entry costs will depend on the detailed guidelines and budget allocations that emerge in the final Assam Budget 2026 document.

What's Next

Attention will now turn to the full budget document for specifics on ATISIS allocations, eligibility criteria for Matcha, and per-kilogram or area-based incentive structures. Tea Board of India export data for FY 2026-27 will serve as an early indicator of whether the policy push translates into measurable gains in specialty tea shipments. If Assam succeeds in establishing a credible Matcha supply chain, it could reshape the state's positioning in global specialty beverage markets and offer a replicable model for other tea-growing regions in Northeast India.