Tea Sector: Rs 7 Million Loss

Financial projections Tea Board is overwhelming. This parastatal body, which employs ten people, will achieve this year losses of Rs 6.9 million.

As for those for years to come, they are valued at Rs 8.7 million for 2013, Rs 8.4 million for 2014 and Rs 8.6 million for 2015.

To remedy the situation, the Government intends to redeploy staff within the Ministry of Agro Industry.

The TB is currently the only organization of its kind to operate in this sector. It was subsidized by the government until 2010.

From July 2009 to December 2010, the state provided a grant of Rs 5.25 million to TB. But the body no longer receives any government assistance since 2011.

During the past 20 years, tea exports have lost momentum in the high cost of production. In addition, Maurice product quality tea to the average world market.

Thus, the export of tea is no longer profitable. It is for this reason that the government had to subsidize this sector through a 'Green Leaf garanteed Price Scheme' which was implemented in 1987.

The Tea Board in decline since 2008

The plan 'garanteed Green Leaf Price Scheme' guarantees farmers a certain price for the purchase of tea leaves. Farmers also receive financial assistance in the winter when the yield of tea leaves are of poorer quality. They also receive government assistance to purchase fertilizers and a bonus at the end of the year.

Some 1,346 farmers earn their living through the tea plantation. They produce 1,663 tons of black tea for an amount estimated at Rs 285 million. Only 38 tons are exported to France and Reunion worth Rs 9.7 million.

In addition, in 2011, five tons of green tea were imported for local consumption and 23 tons of black tea have been better imported for hotels and for mixing with other components.

This organization currently operates a Tea Fund which manages funds belonging to the board. Sources of funding from government and borrowing by the Board.

The TB for years, had accumulated reserves through the sale of tea leaves of the Experiment Station of Wooton from April 1992 to December 1994. Since 2008, the TB began to make losses. To stay in operation, funds have been drawn from the Tea Fund. Some Rs 8.5 million have been disbursed from the fund to date.

The functions of the Tea board

The Tea Board (TB) is a body granting the permit for the cultivation of tea. It also provides control over the planting, import and export of tea. He also oversees standards relating to picking tea leaves.

In addition, the TB may establish a committee to investigate the closure of a factory producing tea. The Ministry of Agro Industry intends to consult the Office of the Attorney General and Ministry of Finance in relation to the redeployment of staff of this organization.