The Hindu Business Line : Chidambaram to distribute special purpose tea fund to S. Indian gardens on Jan 4

The first lot of cheques, or sanction letters, as the case may be, in support of the assistance under the Special Purpose Tea Fund (SPTF) will be distributed to the tea growers of South India by Mr P. Chidambaram, Union Finance Minister, at a function to be held at Coimbatore on January 4.

It might be recalled that similar functions were held earlier for the tea growers in Assam and Dooars (West Bengal). Mr Mani Shankar Aiyar, Union Minister in-charge of the North East and Panchayat, and Mr Tarun Gogoi, Chief Minister of Assam, were present at the function held in Guwahati on June 23 and Mr Pranab Mukherjee, Defence Minister, at Jalpaiguri on June 29.

Smaller in quantity

However, as Tea Board sources indicate, the size of assistance to the South Indian growers will be much smaller as compared to the same scheme in Dooars and Assam. In all, 46 applications were received from South India – 25 from Tamil Nadu, 18 from Kerala and three from Karnataka. The total amount to be sanctioned will be Rs 9.65 crore – Rs 6.67 crore as loans covering 194 hectares and Rs 2.98 crore as subsidy covering 347 hectares. Only eight gardens have asked for loans – seven in Kerala and one in Tamil Nadu.

For Assam gardens, the amount sanctioned was Rs 81 crore and for Dooars gardens about Rs 31 crore. Tripartite meetings among the borrowers, Tea Board and the bankers concerned are to be held shortly to expedite disbursement to these gardens.

The sources will attribute the not-so-satisfactory response of the South Indian gardens to SPTF to several factors.

First, the average size of the gardens at around 200 hectares is much smaller as compared to those in Dooars and Assam, about 400 hectares.

Second, in South India, many gardens are composite plantations, growing not only tea but also rubbers, spices such that any drop in earning from tea production could be more than compensated by the earnings from other crops.

Finally, the shortage of labour is a chronic problem even as rejuvenation and rehabilitation of tea gardens remain a labour-intensive operation.

More Stories on : Tea | Agricultural Policy

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Centre hopeful of 75.5 mt wheat output

Spot rubber stays steady

Chidambaram to distribute special purpose tea fund to S. Indian gardens on Jan 4

Sharp fall in global cloves output may push up prices

Marginal decline in pepper futures

Turmeric futures decline on profit taking

Farmers’ associations want ban on wheat, rice futures to go

Mother Dairy in red; posts Rs 33-cr loss in 2006-07

Positive outlook for major commodities in 2008