Govt clears subsidy scheme for tea growers
In a bid to shore up tea exports, the Finance Ministry has cleared a subsidy scheme for orthodox tea producers. Orthodox tea is mainly consumed by European Union players led by Germany, the Middle East and the CIS bloc.
By Sutanuka Ghosal, TNN |
KOLKATA: In a bid to shore up tea exports, the finance ministry has cleared a subsidy scheme for orthodox tea producers. Orthodox tea, which fetches a decent price in the international markets, is mainly consumed by European Union players led by Germany, the Middle East and the CIS bloc.
Confirming the development, Tea Board chairman Basudeb Banerjee told ET: “The finance ministry and Planning Commission have approved the subsidy scheme for orthodox production for the 11th Plan. The scheme will be effective from April 1, 2007 to March 31, 2012.” The scheme envisages a subsidy of Rs 3 for every kg of orthodox tea production. If the orthodox tea maker produces any extra orthodox tea from his current production level, he will get an additional Rs 2 per kg subsidy.
The industry is upbeat about this development. “This is a good move by the central government. Time has come when producers should focus on more orthodox tea to gain a substantial foothold in the export market. Global consumption of tea is increasing and India should take advantage of the situation,” said Vinay Goenka, president and managing director of Warren Tea. Incidentally, Warren Tea is the largest producer of orthodox tea in the country.
Interestingly, this year, India is slated to produce 10 million kg of additional orthodox tea which will take the orthodox tea production to 90 million kg. The total production of domestic tea is expected to be 950 million kg this year, Mr Banerjee said.
The May to July orthodox production is mainly exported to the EU bloc. Germany is the largest buyer of orthodox tea. The July to August orthodox tea production is picked up by countries like Iran, Saudi Arabia, Qatar and Dubai.
CIS countries and Russia imports October to November orthodox tea production. Tea Board chairman said even though the exports are down in 2007 compared to 2006, the unit price realisation has, however, been higher this year.
Confirming the development, Tea Board chairman Basudeb Banerjee told ET: “The finance ministry and Planning Commission have approved the subsidy scheme for orthodox production for the 11th Plan. The scheme will be effective from April 1, 2007 to March 31, 2012.” The scheme envisages a subsidy of Rs 3 for every kg of orthodox tea production. If the orthodox tea maker produces any extra orthodox tea from his current production level, he will get an additional Rs 2 per kg subsidy.
The industry is upbeat about this development. “This is a good move by the central government. Time has come when producers should focus on more orthodox tea to gain a substantial foothold in the export market. Global consumption of tea is increasing and India should take advantage of the situation,” said Vinay Goenka, president and managing director of Warren Tea. Incidentally, Warren Tea is the largest producer of orthodox tea in the country.
Interestingly, this year, India is slated to produce 10 million kg of additional orthodox tea which will take the orthodox tea production to 90 million kg. The total production of domestic tea is expected to be 950 million kg this year, Mr Banerjee said.
The May to July orthodox production is mainly exported to the EU bloc. Germany is the largest buyer of orthodox tea. The July to August orthodox tea production is picked up by countries like Iran, Saudi Arabia, Qatar and Dubai.
CIS countries and Russia imports October to November orthodox tea production. Tea Board chairman said even though the exports are down in 2007 compared to 2006, the unit price realisation has, however, been higher this year.
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“Tea prices are also strong in the domestic market. On an average, CTC tea is higher by Rs 3 per kg in the domestic market,” he said. Download
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