The Hindu Business Line : Tea industry seeks Rs 4,000-cr special fund to revive bushes

Mr C.K. Dhanuka, the out-going chairman of the Indian Tea Association, told the associations 121st annual general meeting that the proposal was made jointly by ITA and Tea Board.

According to Mr Dhanuka, the project of rejuvenating the bushes would take 15 years to implement. It is expected to start from 2005. At the end of this period, the average age of tea bushes would come down to less than 50 years.

"Commercial banks are reticent to go in for such long exposures and Nabard refinance costs are also prohibitively high. It is with this view that the ITA and Tea Board have strongly advocated the need for a Special Purpose Fund towards providing loans to the industry at a soft rate of interest to encourage large scale replantation," he said.

The proposal has already been forwarded to the Union Government and the industry expects that it would be accepted soon. The domestic tea industry is bullish on starting the programme some time next year.

According to Mr K. David, who would be taking over as the Chairman of ITA, the problem of replanting tea bushes has the high payback time. Generally, it is eight to ten years. The industry wished to bring it down to five to seven years so that tea bush rejuvenation project in every garden gets commercially viable.

Meanwhile, tea exports from India during 2004 is expected to rise to 190 million kg from 173 million kg in 2003. Mr Dhanuka said the growth was largely due to the Iraq market, which has re-started buying Indian tea.

Domestic tea production in 2004 is expected to fall by 27 million kg, compared with 2003, to end at 830 million kg. Tea imports are likely to increase to 20 million kg as against seven million kg in 2003.

The industry representatives, once again, urged the State Governments concerned for the introduction of productivity-linked wages. According to Mr Dhanuka, discussions have already started in West Bengal and Assam.

Mr Nirupam Sen, West Bengal Minister for Commerce and Industry, who was present at the AGM as the chief guest, said West Bengal labour department had initiated talks and the trade unions were positive. "The planters have certain things to do too. There has to be a consensus on this issue," he said.

Meanwhile, ITA has started talking with the panchayats and other local bodies to utilise developmental schemes of the Union Government for reducing the social costs of the tea planters.

West Bengal, Mr Sen said, was working on a project to sell tea through the public distribution system. At present, the fundamentals were being worked out on the tea procurement front.

Regarding the generic promotion of tea, Mr Dhanuka said the Centre was scheduled to release Rs 20 crore some time during November. A new tea promotional campaign will then begin.