FTA with UK and EU will boost Assam's tea market says CM Himanta Sarma

Davos [Switzerland], January 21 (ANI): Speaking at the World Economic Forum in Davos, Switzerland, Assam Chief Minister Himanta Biswa Sarma highlighted the transformative potential of upcoming international trade agreements for the state's tea industry.

In an interview with ANI, the Chief Minister emphasised that while India's domestic market remains robust, the operationalisation of Free Trade Agreements (FTAs) with the United Kingdom and the European Union will be a major breakthrough, opening vital new corridors for Assam's tea exports.

Sarma noted that, "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 Ayuvedic products which we are doing."

Addressing the structural challenges facing the sector, the Chief Minister pointed out the high "social cost" currently borne by Indian tea planters. He compared the local situation to competitors in Kenya and Sri Lanka, where planters do not carry the same level of responsibility for the social welfare and infrastructure of the labour force. Sarma stated, "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."

To tackle these issues, the Assam government has adopted a new labour code and launched various incentive policies designed to provide a better cost-benefit assessment for the industry. These measures, combined with the expected market access from the FTAs, are intended to stabilise the industry and empower local growers.

Sarma concluded by expressing confidence that once these agreements are in place, the "India team," led by the strength of Assam tea, will secure a dominant position in the international market. (ANI)

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