The Tea Board is in a quandary over the XII Plan allocation recently approved by the Centre. An allocation of Rs.1,425 crore — one of the highest ever — has been made for the tea sector, but this amount may now have to be spent within two years as three years of the Plan period are already over.
The XII Plan is from 2012-13 to 2016-17, but no allocation was made until mid-May 2015, mainly due to the policy paralysis of the previous government. Now, the Tea Board is confused about how to apportion the huge amount of money over the two remaining years of the Plan.
Concerned about the issue, the tea industry has already made a representation to the Tea Board saying that at least some of the schemes like the crucial one on plantation development could be regarded as continuous running scheme and funded accordingly, although it may not be possible to incorporate the new provisos (like an enhanced subsidy rate).
The ‘Tea Plantation & Development Scheme’ (the XII Plan for tea) has seven components. This includes plantation development, quality upgrade, market development and export promotion, research and development, small growers development. This is the first instance of a separate allocation, being made for the small growers sector, which is emerging as a major force in the Indian tea industry. The XI Plan allocation was around Rs.700 crore.
New proposals have been mooted for educational support to the dependents of workers. Schemes are also on board for brand promotion, and for strengthening the auction system.
However, the tight time frame is making things difficult for the Tea Board and the industry alike, raising concern whether the fund would remain unutilised.
