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C. Raja Rajeshwari

Providing the tea industry some relief from its burden of the past five years, the Government has announced fresh working capital to tea growers and a special term loan repayable in five years with a moratorium of one year.

Banks would provide fresh working capital limits up to Rs 2 lakh at an interest rate of nine per cent for small growers.

Unlike large players such as Tata Tea, who could not tap international markets for low interest rates, small and weak tea companies could not take advantage of the soft interest rate regime.

Indian banks charge about 12.5-14.5 per cent, which makes the cost of funds expensive. This move would help small companies to access loans at an affordable price.

Likely beneficiaries are Jay Shree Tea, Dhunseri Tea, George Williamson Magor, Assam Brook, Neelamalai Agro Industries and Rossell Tea.

More Stories on : Budget | Tea

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