The tea planter, Bhadreswar Nath (45), was abducted when he was working in his tea garden about one km away from his residence, police said.
Nath's family said he went to his tea garden on a motor bike at around 8 am and when he was supervising the plucking of tea leaves in the garden, two youths on a motorbike whisked him away.
Over 500 people from nearby villages gathered near Jaishidhi high school and shouted slogans against the militants and demanded Nath's immediate release.
District Superintendent of Police Arabinda Kalita said a vigorous search operation was launched by police and army in the bordering areas to rescue Nath.
Meanwhile, Sonitpur District Small Tea Growers Association has condemned Nath's kidnap and urged the militant group to release him immediately.