CCEA approves special packages for tea & coffee industries

New Delhi: Government on Thursday approved a Rs 93 crore special package for the tea industry aimed at promoting modernisation and development of the plantation crop.


The new schemes would be implemented by Tea Board during the remaining period of the 10th Plan period, Finance Minister P Chidambaram told reporters after the Cabinet Committee on Economic Affairs meeting chaired by Prime Minister Manmohan Singh here.

The funds would be made available from the special fund created with collections of additional excise duty on tea, Chidambaram said. The approved tea package has two components.

An amount of Rs 65 crore would be extended as subsidy for orthodox tea production while the remaining Rs 28 crore would meet the actual deficits of the tea research and development institutions, viz Tea Reseach Association at Tocklai in Assam and United Planters' Association for South India Tea Research Foundation.

The subsidy for production of orthodox tea is a one time scheme that would remain valid during the period 1st January 2005 to 31st March 2007. CCEA has approved the subsidy scheme for production of orthodox tea at Rs 3 per kg for leaf grades and Rs 2 per kg for dust grades for existing levels of production with additional incentives at Rs 2 per kg for the incremental volume over the previous year from 1st January 2005 to March 31, 2007. The actual deficit of two institutions would be met for a period of five years from 2004-05.

There will also be a comprehensive relief package for the coffee industry.

The package meant for the coffee industry would provide much needed financial relief the coffee growers, who are facing financial difficulties, the minister said.