Incentives for organic tea plantation sought

Tea Association of India, the country’s largest tea producers’ association, has urged the Union Government to come out with an action plan for the tea industry afflicted with various problems.

In a pre-budget memorandum, the association has listed the measures to be taken and these include interest subvention to promote replantation and rejuvenation of old tea bushes, rise in the rate of subsidy from the present 25 per cent to 40 per cent, incentive for organic tea plantation and uniform rate of agricultural income tax as applicable to tea industry. The association has also sought bringing the orthodox production subsidy scheme under the ambit of the Section 10(30) of the Income Tax Act so that the subsidy received under the scheme from Tea Board becomes eligible for exemption from income tax.

The association has also pleaded extension of the relevant provisions of the North East Industrial & Investment Promotion Policy 2007 also to tea gardens located in Dooars and Terai regions of northern parts of West Bengal. The incentives under NEIIP have so far benefited only the North Eastern States but in terms of backwardness, the Dooars and Terai regions can compete with the North East. Also, the transport subsidy under NEIIP should also be extended to the tea industry, it emphasised. TAI has also demanded enhancement of agricultural credit limit and extension of the priority sector lending to tea industry.