In its budget for 2014, the government of Sri Lanka has decided to take steps in order to encourage the tea small holders. The nation’s government will be doing this in an attempt to improve conditions of tea lands and to boost production.

tea holders

An additional yearly subsidy of Rs. 5,000 per acre has been suggested in the budget for small-scale tea estate owners for tea replanting and water and soil prevention. From January 11, 2014, the extra allowance will be given to about 400,000 small tea estate owners in Sri Lanka and the first round will be held on January 11, 2014 in Nagoda, Morawaka and at Rubber Research Institute in Agalawatta.

The allowance’s presentation to small-scale tea estate owners will be held on January 17, 2014 in the Kandy district. The Minister of Plantation Industries, Mahindra Samarasinghe explained that there are 400,000 tea small holders in the country and account for 76 percent of tea production.

The majority of tea holders have less than one hectare land each. The Ministry and the Bank of Ceylon have launched a new program which will provide loan facility to tea holders, ranging from Rs. 300, 000 to Rs. 500,000, at a 16 percent interest rate.

Photo Credits: FT


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