KPA demands subsidy hike

Karnataka Planters' Association (KPA) has urged the Central government to revise the subsidy proposed from 25 per cent to 40 per cent under the Special Purpose Tea Fund (SPTF) to undertake a massive replantation and rejuvenation programme in the growing regions.

Addressing a press conference here, S P Muthuraman, chairman, KPA, said, "We welcome the commerce ministry's SPTF package for the plantation sector, which envisages a government subsidy of 40 per cent for those who opt for the scheme. However, the subsidy of 40 per cent was pruned to 30 per cent due to the intervention of the Planning Commission."

"Now, we learn, and are given to understand, that the subsidy has been further pruned to 25 per cent, which will not be a worthwhile proposition for growers to go for a massive replantation, rejuvenation programme as was thought about in the original intent of the scheme. We therefore request the Central government to kindly consider revising the subsidy to 40 per cent under the SPTF as originally envisaged so that the tea plantations could benefit from the programme," he added.