Sri Lanka increases subsidy to tea plantations for re-planting to further boost industry
The government of Sri Lanka is reportedly looking at increasing the subsidy given to tea plantations for re-planting from Rs. 400,000 to Rs. 500,000 in order 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, according to local media reports.
The requirement of upgrading the productivity of tea smallholdings has been recognised as essential for maintaining industry production levels, a statement issued by the Government Information Department has stated.
The Cabinet of Ministers has therefore approved the proposal submitted by Sri Lanka’s 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 of Sri Lanka has further stated that 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.
OSL take:
Sri Lanka’s plantation industry, especially tea plantations, is a fast growing sector in the country. Sri Lankan authorities are committed to making Ceylon Tea regain its no. 1 slot in the global tea market. In fact tea produced in Sri Lanka are currently fetching high prices in global markets. Local authorities have also decidef to provide incentives to businesses/investors looking at investing in the industry. Foreign businesses/investors could therefore explore the expanding opportunities in Sri Lanka’s tea industry.
| Article Code : | VBS/AT/20210409/Z_6 |