The Hindu Business Line : TN gesture to small tea growers

ON behalf of the small tea growers, the Tamil Nadu Government has sanctioned Rs 1.15 crore as a one-time contribution to the Price Stabilisation Fund Scheme .

The State Government has pointed out in its GO that the Ministry of Commerce and Industry had announced the PSFS to stabilise the price of the plantation crops, including tea.

Tea growers with land holdings of up to four hectares under tea, are eligible to become members of the scheme. However, out of the 46,490 eligible tea growers in Tamil Nadu, only 23,000 will be covered.

The growers were required to make a non-refundable initial contribution of Rs 500 as entry fee to the fund and open a price stabilisation fund account with a nationalised bank.

As per the scheme norms, during normal years when the price remained within the spectrum band, growers would be required to deposit Rs 500 each year to the account by a specified date. The Centre would give up to Rs 500 to the individual grower's account during these years.

When the price pierced the upper band, the grower's contribution would be a minimum of Rs 1,000 and the Government would make no contribution. When prices fall below the lower band, the growers would not be required to contribute any amount, while that from the Government would be up to Rs 1,000 per account.

The contribution from the Government would be reduced pro rata if the interest earnings from the corpus was insufficient.

In a normal year, that is when prices remain within the spectrum band, the grower subscribing to the scheme would not be allowed to withdraw any amount from this account. When prices fall below the lower band, the subscriber would be permitted to withdraw an up to Rs 1,000.

According to the GO, small growers could not pay the initial deposit of Rs 500 as they were reeling under the steep fall in tea prices. The Industries Commissioner and Director of Industries and Commerce had requested the State Government to sanction Rs 1.15 crore as a one-time grant towards the initial deposit amount of Rs 500, per member, to the 23,000 eligible small tea growers for 2004-05.

The State Government has accepted the proposal and accorded the sanction for the amount and ordered payment to the Executive Director, Tea Board, Coonoor along with the schedule of small tea growers coming under this scheme.

More Stories on : Tea | Agricultural Policy | Tamil Nadu

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