Press Information Bureau

Government of India

Ministry of Commerce & Industry

07-May-2012 15:27 IST

Special Fund for Tea Industry

. A Special Purpose Tea Fund (SPTF) was set up in January, 2007 under the aegis of the Tea Board with an estimated outlay of Rs.567.10 crores (capital infusion of Rs.91.00 crores in SPTF plus subsidy of Rs.476.10 crores) for extending financial assistance in the shape of loan and subsidy to the tea gardens for undertaking uprooting and replanting/replacement planting and rejuvenation of old and senile plantations. The pattern of assistance under the scheme is to provide 50% of the unit cost as long term loan, 25% of the unit cost as subsidy and the remaining 25% as borrower’s contribution. The scheme was to be implemented till the end of the 11th Plan, i.e., during the remaining period of 2006-07 and during the 11th Plan. The physical achievement under the scheme during the 11th Plan, viz., 2007-08 to 2011-12 was that an area of 25144.22 ha. and 6604.85 ha. was covered under replantation and rejuvenation respectively.

The Tea Board has not received any complaint over the quality of Indian Teas from any international organization.

South Indian Tea plantations are faced with acute shortage of labour. To overcome this problem, almost all the tea gardens have resorted to mechanical plucking. Since fineness of hand plucking is difficult to be replicated in the case of harvesting machines, there is some dilution in the quality of made tea when compared to teas made out of hand plucking. Several Research & Development initiatives have been made for improving the plucking efficiency of the machines. Towards this end, the Tea Board has extended financial support to the R&D Institutions for refinement of the mechanical plucking machines so that the quality is not compromised.

This information was given by Shri Jyotiradiya M. Scindia, Minister of State for Commerce & Industry in written reply to a question in Lok Sabha today.

DS/GK

Special Purpose Tea Fund provides structured loans and subsidies for replanting and rejuvenation, plus R&D support to improve mechanical plucking. A Special Purpose Tea Fund under the Tea Board provides structured financial assistance for replanting, replacement planting and rejuvenation by allocating long-term loans for half the unit cost, subsidies for a quarter and requiring the borrower to contribute the balance; the scheme ran through the national plan period and achieved specified replanting and rejuvenation area, while the Tea Board funds R&D to improve mechanical plucking to address labour shortages and quality concerns.