DIBRUGARH, Feb 4 ? The All Assam Small Tea Growers? Association (AASTGA) has said that the Centre?s proposal to allow loans upto Rs 2 lakh for small tea growers at 9% pa interest rate for a five year term will not in any way bring any succour to the small tea growers.
?We are not at all enthused by the announcement made by the Finance Minister during his budget speech in Parliament on Tuesday,? said the AASTGA president, Gangadhar Saikia and general secretary, Hemanta Kumar Gohain. They said that one of the reasons for the recession in the tea industry is over-production of tea, especially of the inferior grades. Both the small growers? leaders said India today produces 80 million kilos in excess of market demand.
They said that under the given circumstances, the proposal to offer capital loans to registered small tea growers makes no sense. They added that due to bureaucratic and political indifference, most of the small tea growers in Assam would not be able to avail of this loan too. ?What we require is a proper infrastructure to help the growth of small tea growers. This can be initiated by allowing land ownership to the small grower,? said Gohain.
The infrastructure the small growers want include tea factories and a minimum support price for green tea leaves. ?Please do not try to hoodwink us by offering a pittance as short term loans,? warned Gohain. He said the small tea growers would have been happier with offers for long term loans on a need and repaying capacity basis, and at prime lending rates applicable to agricultural loans.