The Hindu Business Line : Tea factories seek restoration of subsidy

The private small-scale tea factories (called bought-leaf factories) have appealed to the Union Commerce Ministry to restore the 50 per cent subsidy to enable them to procure the latest machineries.

When the quality upgradation scheme was launched, these factories were given a subsidy to meet half the total cost of the machinery. Subsequently, it was lowered to 25 per cent.

“When the scheme was launched, the industry was reeling under decade-long unprecedented crisis. Factory owners’ confidence was at the lowest ebb. So, many of them did not benefit from the scheme. With the market being favourable in 2008 and prospects seem to be bright for this year, the industry has regained its confidence. There is a tendency to modernise the factories and, hence, improve the quality of our teas. So, we have appealed to the Union Minister of State for Commerce, Mr Jairam Ramesh, to restore the 50 per cent subsidy,” Mr Sunil Goyal, President, Nilgiri Bought Leaf Tea Manufacturers’ Association, told Business Line.

He said that representation has also been made to include light commercial vehicles purchased by factories to transport raw material (green leaves harvested by small growers) and the finished product (black tea moved to warehouses) in the quality upgradation scheme.

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