Tea Association of India (TAI), a leading body of planters, on April 12 sought the release of "pending subsidies" from the Tea Board to carry out developmental activities undertaken at various gardens.
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The Tea Board has been extending subsidy and financial incentives for undertaking various activities relating to improving production and quality of tea under a scheme covering the period 2007-2017, which was followed by the Medium Term Framework (MTF) from 2017 to 2020, TAI said in a statement.
The industry body said gardens under its fold had undertaken substantial developmental activities under the scheme, and a large portion of the amount due to the estates on account of this “still remains unreleased by the Tea Board”.
"The association learns the commerce ministry has stated that with regard to the matter of pending subsidies, Tea Board has informed that all eligible cases where subsidies were sanctioned have been disbursed already... This statement has demoralised the industry as it is in extreme distress,” TAI said.
Disbursing the dues would have made a huge difference to the fortunes of the tea companies concerned, which had undertaken such activities, the industry body added.