Tea Board to fund tea smallholders
View(s):The Sri Lanka Tea Board (SLTB) will assist tea smallholders with a financial stimulus package as an allocation of approximately Rs.300 million has been made for this purpose.
The SLTB believes that to deal with issues in low crop resulting in reduced production due to the drought and lack of replanting, a stimulus package would support the tea smallholders to overcome these concerns going forward, SLTB Chairman Jayampathy Molligoda told the Business Times.
He noted that already the board has drawn up plans and were working on the distribution of the financial assistance to this sector.
The authorities would be granting this financial support in order to establish nurseries and the purchase of planting material in addition to carrying out appropriate drip irrigation or sprinkler systems and soil building with all the required nutrients from day one.
Funds for this type of support is being obtained from the Tea Promotion Marketing and Development Fund allocated for this purpose.
Front-end assistance through promotions and marketing is also being worked out, he said adding that despite the good prices in the recent past the sector is faced with problems brought forward.
Mr. Molligoda said they had taken a decision to give financial support as a gradual decline in replanting rate was noted but smallholders must follow the stringent quality methods recommended by the SLTB.
He also stated that they were looking at assisting the industry by attracting foreign buyers to the market.
(SD)