Smallholders eye million rupee subsidy

The Sri Lanka Tea Board (SLTB) will recommend doubling the subsidy granted to tea smallholders in a bid to encourage replanting and infilling.

SLTB Chairman Lucille Wijewardena said they would be recommending a further increase in the subsidy granted to the smallholders. At present smallholders receive Rs. 500,000 per hectare and this is likely to be increased to Rs.1 million recommended for a period of about four years aimed at accelerating replanting on the estates.

With income levels of smallholders relatively limited due to the fact that they own very small acreages of tea the government believes it is necessary to assist them as replanting causes their income levels to drop drastically, he explained.

Mr. Wijewardena pointed out that ideally they should be working on 1000 hectares per year for a period of four years.

He pointed out that there is a need to arrest the situation on the plantations as the number of bushes required per acre has dropped due to age and various other factors.

Plantations require at least 5000 bushes per acre whereas the current average is 2500 per acre, the SLTB chairman noted.

Meanwhile, Mr. Wijewardena noted that the baseline figures for ascertaining irregularities in the factories were worked out and they would be conducting an analysis of these samples.

He pointed out that should factories be found to tamper with the teas they would be asked to stop their marketing of teas or close or suspend operations of the factories.

Currently, authorities have initiated action against two small factories in Deniyaya and Galle areas with closure and suspension of sale of tea, Mr. Wijewardena said. (SD)