Tea sector gets a govt boost

After a series of measures to check the economic meltdown, the Centre has initiated steps to partly relieve the country’s plantation industries from its social infrastructure burden, reports Rahul Karmakar.

After a series of measures to check the economic meltdown, the Centre has initiated steps to partly relieve the country’s plantation industries from its social infrastructure burden.

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The social infrastructure cost – it entails housing, electricity, health and education for plantation workers and their dependents – is blamed for high production cost, making Indian tea, coffee, rubber and cardamom lose out in the global market.

“The social infrastructure cost for the Indian plantation industries over the next five years is expected to be Rs 2,800 crore,” said Jairam Ramesh, minister of state for commerce. “The government has agreed in principle to the commerce ministry’s proposal to share 50 per cent of this burden.”

The move is expected to lower the tea price by Rs 4-5 a kg in the international markets, thereby helping the industry to face competition from countries like Sri Lanka and Kenya exporting cheap teas.