'Centre to restructure bank loans for reopening of tea gardens'

Thekkady, Kerala, May 31 (UNI) Union Minister of State for Commerce Jairam Ramesh today said the Centre would facilitate the restructuring of National Bank loans to the tune of Rs 185 crore to help in the reopening of 33 closed tea gardens in the country.

Talking to reporters here ahead of the reopening of four closed tea gardens in this district, Mr Ramesh said the restructuring of the loans was part of a Rs 2050 crore special package being considered by the Centre to help the sick tea gardens.

He said the elements of the package were waiver of penalty on provident fund dues to the tune of Rs 49 crore and the waiver of Tea Board loans amounting to Rs five crore.

To help the tea gardens to get back on their feet, the Centre would also facilitate interest subsidy on fresh loans availed by the tea gardens, he noted.

Describing 2006 as a good year for the Indian Tea Industry, Mr Ramesh said the value realisation for one kg of tea went up by Rs 8 from Rs 72 per kg last year.

He said the tea production in 2006 touched 960 million kg while the exports were about 185 million kg.

To expand the trade links, the country was trying to break into the export market of Pakistan, Iran and Egypt in addition to the four traditional importing countries of Iraq, Russia, the UK and the UAE, the Minister noted.

Describing Pakistan as a major tea importer, third largest in the world, Mr Ramesh said the neighbouring country imported 150 million kg per year of which India's share was a mere 10 million kg.

He said India's tea exports to Russia were under threat as the consumers there were moving from CTC (Crush, Tear and Curl) tea to orthodox tea.

To keep in tune with the changing consumer preference, India plans to double the production of orthodox tea in the next five years, Mr Ramesh added.

The Minister noted that the electronic auction of tea was likely to be introduced by October-November this year.

UNI