The Tea Board has withdrawn its notice to select factories seeking recovery of quality upgradation subsidy availed by them. It has also withdrawn the notice to cancel licences issued under the Tea (Marketing) Control order to manufacture and sell tea.

“The Board had issued notices to some factories in South India whose teas fetched prices lower than the South Indian auction price or private sale average price in 2011. Contending that lower price meant that the subsidy did not achieve the value for the money and needed recovery, the Board had sought explanation if they wanted to protect their licence,” the Tea Board Member, Dr S. Ramu, told Business Line .

Dr Ramu said that representations had been made for reviving the pruning subsidy scheme abandoned recently, as there is scope to prune at least 10,000 hectares annually in the Nilgiris.

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