Kerala - Kochi   

Loan, subsidy distributed to 34 tea estates

Photo: Vipinchandran

Relief for tea estates: Union Minister of State for Commerce Jairam Ramesh launching the Special Purpose Tea Fund for 34 tea estates of Kerala, Karnataka and Tamil Nadu in Kochi on Saturday.

KOCHI: Loan and subsidy were distributed to 34 tea estates in Kerala, Tamil Nadu and Karnataka from the Special Purpose Tea Fund constituted by the Union government at a function here on Saturday.

Union Minister of State for Commerce Jairam Ramesh, who distributed the cheques, said the fund for revival of tea plantations had been launched in West Bengal and Assam. The money was intended for re-plantation and rejuvenation of tea plants which were more than 50 years old. Out of 1,600 tea estates in the country which were eligible for the scheme, 479 had applied for it. The rate for South Indian estates were increased in consideration of the higher labour cost. The area to be covered under the scheme every year was being increased. The pruning height of plants was also being raised to benefit estates in South India. Fewer applications from the South were on account of the large number of small estates present in Kerala and other South Indian States which were not eligible for the scheme.

Though South India accounted for only 25 per cent of the country’s tea production, it had a share of 50 per cent of the export of tea. About 40 per cent of India’s tea growing area would come under the scheme within 15 years, according to the government’s estimates. Accordingly, re-plantation would be done in 11,000 hectares every year. An amount of Rs. 4,700 crore would be spent under the fund in 15 years.

He said the government would publish a notice on expression of interest for takeover of the closed tea estates for finding new owners under the powers vested with the government. The Minister made it clear that nationalisation of tea estates was not on the agenda of the government and that the estates would be entrusted with new owners. The process had already begun in West Bengal, he said.

The Minister said the government would encourage production of orthodox tea as there was an increased demand for it from abroad. There would be more subsidy for orthodox tea. The Minister stressed the fact that the scheme would be the last chance for rejuvenation of tea plantations. Sri Lanka, Kenya and Vietnam would overtake India if the country failed to increase productivity.

Referring to exports, he said Iraq was a big market for Indian tea, but payment issues had come in the way. Though tea was exported to Iraq from Kolkata, the consignments originated mostly from Kerala and Tamil Nadu. The exports to Iran, another important market, too faced problems arising out of letters of credit. The issues were being sorted out.

The Minister said the Indian cashew sector was under threat from Vietnam where productivity was three to four times that of India. A recent study conducted by the Union government revealed that 25 per cent of cashew was produced in Maharashtra, while Kerala accounted for 12 per cent. But 50 per cent of the cashew was processed in Kerala. The government was actively considering the proposal for setting up a Cashew Development Board for integrated action to promote the sector. A Global Cashew Alliance consisting of India, Vietnam and Brazil was under consideration. It would be an intergovernmental consultative body.

Basudeb Banerjee, Chairman of Tea Board, said 60 per cent of the target under the scheme had been met during the current financial year. The tea industry was comparatively not big in terms of turnover, but it derived strength from the number of people employed by it. The sector employed more people than those in the software sector and 50 per cent of the workers were women.

Labour Minister P.K. Gurudasan said the amount being distributed under the scheme should be enhanced. He wanted the Union government to discuss the conditions for distribution.

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