The Hindu Business Line : `Allow sick tea cos to access special purpose fund'

Suggestions
Interest rate must be fixed for entire loan period
Rejuvenation extended to all growing regions
Subsidy must be stepped up to 40 per cent

Kolkata March 13 Tea Association of India has appealed to the Commerce Ministry not to prevent sick companies in the Barak Valley and Cachar region in Assam from accessing the special purpose tea fund as such exclusion will defeat the purpose of the scheme.

Each application for fund from weak tea gardens should be judged on merit and on case-to-case basis, according to Mr D.P. Maheswari, Vice-President of TAI.

Addressing the 36th annual general meeting of the Barak Valley branch of the association at Silchar, he also made a few other suggestions for utilisation of the fund.

The rate of interest should be fixed for the entire period, rejuvenation extended to all growing regions, irrespective of hills and plains, tea gardens in Cachar must be made eligible for rejuvenation and the subsidy should be stepped up to 40 per cent to cover actual loss of revenue.

Mr Maheswari pointed out that production in Barak Valley was down by four million kg or 10 per cent in 2006 compared with 2005.

In 2006, the average price of Cachar teas at Rs 57.34 per kg posted a decline of Rs 11 per kg when compared with Rs 68.13 per kg in 1998.

The Cachar teas fetched lowest price among the other major producing regions of North India such as Dooars and Terai in West Bengal and Brahmaputra Valley in Assam.

"The continuing poor price recovery visa-a-vis high input costs have forced a number of tea gardens in Cachar to shut down, while several others are hard pressed to make both ends meet," he said.

Mr Maheswari also demanded total exemption to Barak Valley from payment of green leaf cess for at least three years and granting of transport subsidy for tea industry in Assam in general and for Cachar region in particular on the lines of other central subsidy schemes for the North-Eastern region.