- Govt. to increase replanting and new planting subsidy amounts by Rs. 100,000
- Measure expected to support industry to reach 360 m kg production goal
The Government will increase the subsidy given to tea plantations for re-planting from Rs. 400,000 to Rs. 500,000 to help the industry reach its target of producing 360 million kilograms of tea by 2025.
Out of the total 300 million kilograms of tea manufactured in the year 2019, approximately 75% or about 225 million kilograms were manufactured by tea smallholders.
The requirement of upgrading the productivity of tea smallholdings has been recognised as essential for maintaining industry production levels, a statement by the Government Information Department said.
Therefore the Cabinet of Ministers approved the paper submitted by Plantations Minister Dr. Ramesh Pathirana, to increase the tea replanting subsidy and newly planting subsidy from Rs. 400,000 to Rs. 500,000 per hectare.
The Government said the increase in subsidy allowance would be an encouragement for the industry to reach the production target of 360 million kilograms of tea by 2025. This would be especially beneficial since the funds for re-planting are insufficient, since its takes about four years for a replanted hectare to generate income.