Lankapage Logo Recent Top Stories
CP 14 YEARS
Go Home Home Serving the Sri Lankan community globally since 2000
go to LankaPage.com

Leading News from Sri Lanka::

* Increased tea production in Sri Lanka due to government subsidies - Minister
Mon, Jan 13, 2014, 11:19 am SL Time, ColomboPage News Desk, Sri Lanka.

Jan 13, Colombo: Sri Lanka's tea production rose to 339 million kilograms last year from a 328 million kilograms produced in 2012 as a result of the subsidies provided by the government to the tea growers, the Economic Development Minister Basil Rajapaksa said.

Addressing a tea small holders' meeting held at the Morawak Korale Tea Producers Cooperative Society Hall, Kotapola on January 11 to distribute the once a year subsidy of Rs. 5000 per acre for small scale tea estate owners, the Minister said the increased tea production has earned the country Rs. 1.6 billion.

The Minister commenced the island-wide programme to provide the Rs. 5000 per acre subsidy for soil and water conservation in tea small holdings to empower tea small holders under the 2014 budget from the Matara District.

Nearly 2000 persons representing 387 small holders societies in the district participated in the meeting held under the direction of Plantations Industries Minister Mahinda Samarasinghe.

Minister Rajapaksa pointed out that tea small holders contributed to 70 percent of the island's tea production and added the Government had given much assistance to ensure a sustainable development of tea small holdings.

This has led to a high demand for Sri Lanka tea worldwide resulting in the price of tea going up to Rs.90 per kilo. Sri Lanka's tea consumption per person per year is 1.3 kilo grams.

Out of the island's 206,104 hectares of tea plantations 70 percent are small holdings which are cultivated by 397,223 small holders who produce 1.5 million kilos of tea. The small holdings are spread over 14 districts including Ratnapura, Matara and Galle.

According to Minister Rajapaksa the government has given a subsidy of Rs. 350,000 per hectare of tea land and Rs. 250,000 per re-cultivated hectare. The fertilizer subsidy is Rs. 25 per tea plant. A fertilizer bag of 50 kilo grams priced Rs. 3,500 is sold to small holders at the subsidized price of Rs. 1,500 per bag.

Even when the price of a kilo of tea leaves dropped to Rs. 25 the government did not reduce subsidies, the Minister reminded.

Minister Mahinda Samarasinghe said the government's revenue through tea industry is three times more than the cess tax.

The Plantation Ministry in collaboration with the Bank of Ceylon has also launched a program to provide loans ranging from Rs.300,000 to Rs.500,000 at a 16 percent interest rate to the small holders.

** Related Story :: Tea small holders in Sri Lanka to get Rs. 5,000 allowance from today

ColomboPage - Recent 10 Stories
Sri Lanka hopes for better relations with new UNHRC Chief
-- [2 hours ago]
Bank of Ceylon extends anti-money laundering contract with Callcredit Group
-- [2 hours ago]
The best we can give our children is education - Sri Lankan President
-- [3 hours ago]
Sri Lankan court allows deportation of Pakistani asylum seekers
-- [5 hours ago]
Sri Lanka state hospitals back to normal as the supplementary staff ends the strike
-- [5 hours ago]
Plans underway to give Sri Lanka's phosphate deposit to China, civil society movement charges
-- [6 hours ago]
Sri Lanka's veteran trade union leader Bala Tampoe passes away
-- [7 hours ago]
UK has provided 3.5 million pounds for Sri Lanka's demining program
-- [7 hours ago]
Chinese national arrested at Sri Lanka airport trying to smuggle Wallapatta
UNP Chief ministerial candidate says meeting with President's son accidental

Copyright © 2000, 2014 by LankaPage.com (LLC) :
The news and other contents on ColomboPage are copyrighted property of LankaPage.com, LLC. Any unauthorized use of any information on ColomboPage may constitute a violation of copyright laws. You need written permission to reproduce, republish, post, transmit, broadcast or distribute, material from this site from LankaPage.com, LLC. However, news organizations or broadcasters in Sri Lanka may republish the news items in ColomboPage with proper acknowledgment to ColomboPage.