The Tea Board has recommended loans worth Rs. 2 billion to the commercial banks under the Government relief package to uplift the tea industry.

Speaking to The Bottom Line, Tea Board Chairman Lalith Hettiarachchi stated that they have approved over 200 applications with loans amounting to Rs. 2 billion to be provided to the planters and factory owners. “The bankers have been asked to instruct their regional offices to activate the loans and we have instructed the applicants to let us know as soon as they obtain the loans.” He added that the Tea Board intends to monitor and follow up on the loans to ensure the smooth progression of the scheme.

The working capital loans will be provided to the tea industry at concessional interest rates which are 6% less than the going rate. The concession will be reimbursed to the loan takers by the treasury through the funds of the Rs.16 billion stimulus package.

In the meantime, tea prices at the auction have been steadily growing with low grown teas sold at Rs.325/kg. The planters have still not utilised the fertiliser obtained at subsidised rates as the rains are still late, he informed adding that the use of fertiliser will lead to higher quality teas entering the auction within a month.