Special tea fund gets CCEA nod

In a bid to boost India8217;s tea industry, the Cabinet Committee on Economic Affairs today approved the creation of a Special Purpose Tea Fund SPTF that would fund rejuvenation and replantation activities aimed at improving the age profile of tea plantations. The Tea Board, which would administer the SPTF, expects yields to go up and the production cost to go down once the rejuvenation activities are implemented.

Indian tea, which has been increasingly facing competition from Kenya and Sri Lanka in the international tea market, is also expected to become more competitive due to improvements in quality. Price realisations may also go up. The government expects the SPTF8217;s activities to generate additional employment at the rate of 22 million man days per year, that may help employ the dependents of permanent workers residing in tea plantations.

Employees of defaulting central PSUs under the Ministry of Heavy Industry can also expect some relief going into the new year, with the CCEA clearing budgetary support to pay their outstanding dues including salaries.