Centre to restructure National Bank loans to reopen tea gardens

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

Talking to reporters, ahead of the reopening of four closed tea gardens in Kumili district here, Mr Ramesh said the restructuring of the loan was part of a Rs 250 crore rpt Rs 250 crore special package being considered by the Centre to help the sick tea gardens.

The package included 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.

The Centre would facilitate interest subsidy on fresh loans availed by the tea gardens in order to help the 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, UAE and the UK, the Minister noted.

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 would double the production of orthodox tea in the next five years, he added.

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

UNI