TAI urges Union govt to continue subsidy

Guwahati, April 12: The Tea Association of India (TAI), a leading association of tea planters, has moved the Union Commerce ministry to continue the existing scheme of rejuvenation subsidy for Cachar (Barak Valley) and Asom valley tea estates.

The TAI raised objection to the proposal under the Special Purpose Tea Fund (SPTF) that is yet to be made operational, to continue with the existing rejuvenation subsidy only in case of tea estates in Darjeeling and South India because of their hilly locations.

The TAI argued that the tea estates in the entire Barak Valley area in Southern Asom were largely located on hilly areas and the proposal to discontinue with rejuvenation subsidy would hit those estates hard.

In a memorandum submitted to the Union Commerce Ministry, the TAI said, '' Replantation has got its own problem of longer pay back period and the old sections have to be uprooted and kept unsowed for one and a half years that will affect the financial health of the estates. The pay back period of replantation is much longer than the rejuvenation where the yields jumps to almost double the earlier yields within four years period.'' The TAI said the tea gardens in Barak Valley areas had incurred heavy losses during the last six to seven years because of the slump in the tea market and the existing scheme of rejuvenation subsidy would be a boost to regain their financial health.

UNI