Government has been implementing the Price Stabilisation Scheme (PSF) and Plantation Crop Insurance Scheme (PCIS) since 2003 which came to an end on 30.09.2013. Presently no subsidy scheme is available for stabilisation of prices in tea industry for helping small and medium plantation holders.

 Tea Board provides support for marketing of produce of small and medium plantation holders through auction centres at Guwahati, Kolkata, Siliguri, Jalpaiguri, Cochin, Coimbatore and Coonoor. Tea Board also provides assistance towards meeting additional transport & handling charges incurred for teas exported through ICD Amingaon, marketing of Packaged Teas of Indian Origin (Brand Support) and participation in international fairs and exhibitions.

 Under the “Tea Development and Promotion Scheme” of the Tea Board during the XII Plan, the unit cost of replantation including the crop loss for the gestation period is included in the subsidy provided to tea growers. The XII Plan scheme includes provisions of subsidy for replantation, replacement planting, rejuvenation pruning, extension planting, irrigation and mechanisation covering an area of approximately 74,400 ha., including the small holdings. An outlay of ₹ 482.90 Cr. is earmarked for the purpose. The scheme aims at increasing production, field productivity and quality of Tea.

 This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.

Price stabilisation in tea industry lacks current subsidy; support limited to marketing and replantation subsidies under development scheme. Absence of a central price-support subsidy after termination of the Price Stabilisation and Plantation Crop Insurance Schemes leaves no current subsidy for price stabilisation; the Tea Board instead provides marketing, export transport and brand support. Under the Tea Development and Promotion Scheme (XII Plan) replantation unit costs and gestation-period crop loss are included in subsidy provisions covering replantation, replacement planting, rejuvenation pruning, extension planting, irrigation and mechanisation to raise production, productivity and quality.