At a rally in Dibrugarh ahead of the Assam Assembly polls, Union Home Minister Amit Shah on Friday pointed to the benefits of the newly-inked India–EU Free Trade Agreement (FTA) for Assam's tea industry. Speaking at one of the biggest tea-growing regions, Dibrugarh, Shah said that the pact would allow tea shipments from the state to enter European markets without any tariffs.
The deal, Shah said, would provide a big economic boost to both tea growers and exporters from Assam.
Addressing a gathering at the Khanikar Parade Ground in Dibrugarh, Shah said the EU-India trade pact will further boost Assam tea exports to European countries.
"A few days ago, India and the EU sealed the FTA deal, and its biggest benefit will be felt in Dibrugarh, Assam. Tea from the region's gardens will now reach the morning cups of people across all 27 European countries, opening up a massive market for Assam’s tea," Shah said.
He added that Prime Minister Narendra Modi, through this landmark agreement, has brought Assam tea to a global stage.
WHY UPPER-ASSAM, TEA AND AHOM ARE IMPORTANT IN THE STATE'S POLL ARITHMATIC?
Assembly elections in Assam are expected in March-April this year. Amit Shah's rally in Dibrugarh, which is envisioned by Chief Minister Himanta Biswa Sarma as the state's second capital, is receiving a major push ahead of the polls. Shah also laid the foundation stone for projects worth Rs 825 crore, including the state's second Assembly complex, in a bid to decentralise administration.
Shah's focus on the FTA was seemingly a poll plank by the BJP, aiming to appeal to people (directly and indirectly) associated with tea and related industries. They have increasingly supported the BJP since 2014.
Political parties are intensifying their campaigns in the state, particularly in upper Assam where tea garden communities form a significant voting bloc. Upper Assam is also the home to the Ahom community of Assam, to whom PM Modi and CM Sarma have made outreach to.
The Ahom community is predominantly concentrated in Assam's districts of Sivasagar, Charaideo, Jorhat, Golaghat, Dibrugarh, Tinsukia, Lakhimpur, Dhemaji, Sonitpur, Biswanath and Nagaon. Some of these are major tea-growing districts of Assam.
The Ahoms, traditionally supporters of the Congress, have shifted allegiances amid promises of better economic opportunities and welfare measures. In the 2021 Assembly and 2024 Lok Sabha elections, the BJP registered significant gains in Upper Assam. In the 2024 Lok Sabha election, the BJP swept the whole of Upper Assam barring the lone seat of Jorhat. Interestingly, the Congress' Assam face, Gaurav Gogoi, also belongs to the Ahom community. Gogoi represents the Jorhat Lok Sabha seat, which is also a part of the tea-growing belt.
So, by linking the trade deal to direct benefits for tea growers and labourers, and also reaching out to the Ahoms, the BJP is seemingly seeking to consolidate its hold in constituencies dominated by the tea-growing community. Using this strategy, the BJP is trying to cement its position in the region.
HOW EU-INDIA FTA WOULD BE A GAME CHANGER FOR ASSAM TEA
The Assam Orthodox Tea holds the prestigious Geographical Indication (GI). It must be noted that Assam is India's leading tea-producing state, accounting for over 52% of the country's total output.
In 2024, the state produced approximately 628 million kilograms of tea, according to data from the Tea Board of India. Projections for 2025 suggest a marginal increase, with Assam's output likely hovering around 650 million kilograms.
Globally, Indian tea exports, including those from Assam, reached around 262 metric tonnes in 2024-25, reported India Today's sister publication, Kisan Tak.
Assam's orthodox black tea varieties are especially prized in Germany and Poland, for their robust flavour.
As Amit Shah said, "By giving Assam tea access to these EU's 27 nations, which together account for nearly one-third of global trade, the deal will help Assam's tea compete better with rivals from other countries and earn higher profits".
The India-EU FTA, sealed on January 27, after nearly two decades of negotiations, is being hailed as one of the most ambitious trade pacts in recent history. Described as the "mother of all deals" by leaders of both the European Union and India, it aims to create a massive combined market serving over two billion people. The deal, now sealed, might come into effect by 2027.
It would eliminate tariffs on more than 99% of India's exports by value to the EU's 27 member states, including key items like tea, textiles, and spices.
For Assam tea, this means zero-duty access, which will increase shipments and revenues by removing barriers that previously added costs and reduced competitiveness. Assam, as of now, faces competition from Sri Lanka, which exports Ceylon tea, and countries like Kenya and China, which also produce tea.
During his speech, Shah also expressed gratitude to the tea garden workers for establishing Assam and India as top tea exporters worldwide. "Dibrugarh is known as the tea capital, and garden workers have ensured that the aroma of Assam tea reaches the world. The state is recognised around the world for its tea. It is the hard work of labourers that has ensured this," he said.
Shah also praised the state government's initiatives under Chief Minister Himanta Biswa Sarma, pointing out legal amendments that grant tea garden workers ownership rights over land.
