The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, has introduced a significant budgetary boost for India’s plantation sector. The total allocation for the Plantation Commodity Boards, which includes the Tea, Coffee, Rubber, and Spices Boards, has been raised to Rs. 1,565 crore, an increase from the revised Rs.1,228 crore allocated in FY25. This move demonstrates the government's commitment to fostering growth in the plantation industry, which is crucial to India’s agricultural exports and rural economy.

The Tea Board has received the largest allocation among these boards, with Rs.771.55 crore earmarked for FY26. This is a substantial 54% increase from the revised Rs.500 crore allocated in FY 2024-25. The tea industry has long been a cornerstone of India’s export market, but it faces challenges such as fluctuating global prices, labour issues, and climate-related disruptions. To address these concerns, the government has also approved the Pradhan Mantri Cha Shramik Protsahan Yojana (PMCSPY) for FY25 and FY26. This program aims to enhance the welfare of tea workers, focusing on improving health and education services in tea garden areas. Additionally, the 2021-22 Budget had allocated Rs.1,000 crore for the welfare of tea workers, especially women and children in Assam and West Bengal, and the government is continuing these efforts to provide long-term support for the sector.

The Coffee Board has been allocated Rs.280 crore for FY26, an increase of 12% over the revised allocation of Rs.250 crore in FY25. This additional funding is expected to support the coffee industry in expanding production capabilities, enhancing sustainability practices, and tapping into the growing global demand for premium Indian coffee. The sector has witnessed increased interest, particularly from specialty coffee markets, and this investment is aimed at ensuring the continued growth of coffee exports.

Meanwhile, the Rubber Board’s allocation for FY26 has been set at Rs.360.31 crore, marking a 3.4% increase over the previous year's revised budget of Rs.348.38 crore. The rubber industry has faced challenges with global price volatility and increasing competition from synthetic alternatives. The increased funding will help the sector focus on improving rubber cultivation, processing technologies, and exploring new markets for natural rubber.

The Spices Board has received an 18% increase in its budget, with Rs.153.81 crore allocated for FY26, up from Rs.130 crore in FY25. India’s spice industry, particularly products like turmeric, pepper, and cardamom, is seeing strong demand in global markets, especially due to the rising interest in health and wellness products. This increase in funding will help improve infrastructure, support farmers, and boost export efforts, ensuring India remains a global leader in spice production.

In summary, the higher budget allocations for these commodity boards reflect the government’s strategy to support sustainable growth in the plantation sector. These investments are expected to strengthen production capabilities, improve the welfare of workers, and enhance India’s position in global markets for tea, coffee, rubber, and spices.