Tea industry is an important sector in the agricultural and manufacturing industries in India, especially in the states of Assam, West Bengal, Tamil Nadu, and Kerala. Thousands of small tea growers depend on tea cultivation for their livelihood, and now they are looking to find ways to set up their own mini tea factories to process their own green leaves instead of selling them to tea factories.This will enable small tea growers to increase their profitability by processing their tea leaves.
To support these initiatives, the Tea Board of India has come up with a Mini Tea Factory License, which allows small tea growers as well as tea producer companies to establish tea processing factories legally. Although it requires infrastructure & machinery investment, understanding the mini tea factory cost and licensing requirements is essential before starting operations.
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To operate a tea processing unit legally, businesses must obtain a Mini Tea Factory License from the Tea Board:
The following are the important documents required for mini tea factory license:
The Mini Tea Factory License fees include a government application fee of ₹1,000 (exclusive of GST).
| Mini Tea Factory License Fee Type | Mini Tea Factory License Fee (INR) |
|---|---|
| Government Application Fees | ₹1,000 |
| Professional Fees | ₹19,999 |
Note: The aforementioned Fees is exclusive of GST.
Mini Tea Factory License is a license that is issued to small tea farmers, farmer associations, or producer companies by the Tea Board of India to set up their own tea processing units. Mini tea factories typically process green tea leaves sourced from their own plantations or purchased from nearby small tea growers. The license ensures that the factory follows proper standards of processing, hygiene, and legal trade practices established by the Tea Board.
The Mini Tea Factory License from the Tea Board of India presents several important benefits for small-scale tea producers and producer companies:
The mini tea factory license validity continues as long as the tea factory complies with the guidelines and regulations framed by the Tea Board of India. Once the license is issued, it does not have to be renewed periodically. However, it must be ensured that the license holder operates the tea factory accordingly.
The establishment of a mini tea factory is very advantageous to small tea growers as they would be able to process their own green leaves. This would help improve the quality of their products. The Mini Tea Factory License is significant in helping businesses process their own tea in a transparent and quality manner.
If you are planning to set up a mini tea processing unit, Professional Utilities can help you with the complete registration process. From preparing the documentation to submitting the application, our experts can help you simplify the process so that you can get on with the business of setting up a successful tea processing business.
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The subsidies for the tea factories in India are usually provided by the Tea Board of India and amount to 25-40% of the project cost for setting up or modernizing the units. The incentives for the tea factories in India are as follows: 40% subsidy for setting up new orthodox/specialty tea factories up to Rs. 25-33 lakhs for plant & machinery.
Small tea growers and groups of tea growers and producer firms that cultivate tea leaves themselves and plan to treat them in their facilities can apply.
Applicants shall submit the Form along with the documents concerned to the Tea Board of India. The application may be made before the nearest regional, head, or zonal office of the Tea Board.
Yes, upon document verification, an authorized officer of the Tea Board can carry out a physical check on the intended factory site to evaluate conformity to standards.
The license to operate a Mini Tea Factory in India is usually valid for a lifetime. Once a license to operate a manufacturing unit is acquired under the Tea Marketing Control Order (TMCO), 2003, which is facilitated by the Tea Board, it does not need renewal and hence can be valid for the lifetime of the business.
The mini tea factory cost varies from approximately ₹16.8 lakh to ₹70 lakh. The major expenses are incurred on the purchase of machinery like withering troughs, rolling machines, dryers, construction of the facility, and licensing.
Yes, but you will have to obtain a Registration Cum Membership License (RCMC) from the Tea Board of India. This license is a prerequisite for taking advantage of export benefits under the Foreign Trade Policy.
A Tea Exporter License is required to export tea from India, ensuring compliance with the Tea Board regulations, quality standards, and international trade norms.
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