The Hindu Business Line : Nilgiris small tea growers seek subsidy hike for replanting

THE Nilgiris Small Tea Growers Association has appealed to the Commerce Minister, Mr Kamal Nath, to increase the subsidy for replanting the age-old bushes in the small growers' fields to 50 per cent of the cost.

"At the recent stakeholders conference in New Delhi, it was recommended that the subsidy be enhanced for all segments of tea growers to 40 per cent from 25 per cent. But, since the small holders do not have the money to fund a huge sum for replanting, we have now written for a subsidy to meet half the cost," Mr M. Bhojarajan, President of the association, told Business Line.

Mr Bhojarajan urged for the immediate implementation of the special tea term loan because banks did not grant the loans in the South. "This scheme envisages interest concession and a moratorium which are essential for small growers. We have also asked for pruning subsidy under this scheme. We have pointed out to the minister that small growers do not get the same treatment as general farmers when it comes to bank finance," said Mr Bhojarajan who attended the Delhi conference.

Another representation related to the enhancement of the subsidy for quality upgradation in the factories belonging to the small-scale sector. "Earlier, for the small scale sector, the subsidy was limited to 50 per cent of the cost of the upgradation, while it was 25 per cent for the estate sector. Then the Tea Board made it uniform for both the sectors at 25 per cent. We have now asked for the restoration of the 50 per cent subsidy," he said.

Mr Bhojarajan also called for the formation of a Small Tea Growers Development Authority similar to those in Kenya and Sri Lanka.

"The bodies in those countries are doing useful service to small growers. If this benefit is extended to India, it would improve the productivity of the small-scale sector, which accounts for some 20 per cent of the national tea production," he said.