Performance Budget - Tea Board of India

PeriodQuantity(M.Kgs)Value(Rs.Crs)Value (US$in Million)April- October 2006@ 114.27 1048.50 233.00*April- October, 2005* 103.90 998.24 228.10Increase (+) or Decrease(-) in 2005-06 over 2004-05 (+) 10.37 (+) 50.26 (+) 4.90@ Estimated and subject to revision * Provisional and subject to revision.* (Based on the Exchange Rate of 1 US$ = Rs.45.00 taken for calculating the Export Target in ValueTerms.)The increase in export of tea from India during the current year so far as compared to last yearhas been due to improvement in export substantially to the countries such as Iraq (16.72 M.Kgs), Pakistan(4.28 M.Kgs), Afghanistan (1.61 M.Kgs), A.R.E (1.08 M.Kgs) Kenya (5.24 m.kgs) etc .As indicated above, the Physical Plan Target for the final year of 10th 5-year Plan and first yearof 11 th 5-year Plan i.e. for the year 2006-07 and 2007-08 is appended below :Year Production Target (M.Kgs.) Export Target (M.Kgs.)2006-07 950 2002007-08* 975 210* Suggested to DTD through the Chairman, Tea Board for fixation of 11 th 5 year Plan..C E S S :Based on the expected production of tea of 950 M.Kgs. during 2006-07, the amount of cesscollection is worked out to Rs.28.32 Crores. The anticipated collection of cess based on the targeted /projected production of 975 M.Kgs. during 2007-08 is given below :YearTotal expected cess collection (In Rs.Crs.)2006-07 28.322007-08 29.07* Provisional as collected from the Ministry of Finance Govt. of India.TEA DEVELOPMENTDevelopment of tea industry is one of the important functions of the Board. For this purpose, the Board hasbeen implementing various developmental schemes. The main thrust of the Annual Plan for 2006-07 wouldbe on the following spheres of activities:-1. Enhancement of production through various development measures such as uprooting agedsections and replanting, replacement planting, rejuvenation pruning and infilling of vacancies withimproved planting materials.2. Enhancement of productivity of small tea growers.3. Special emphasis on irrigation for combating the drought conditions.4. Augmentation of tea processing facilities for manufacture and modernisation of existing teafactories to ensure production of quality tea suitable for domestic and export market.5. Market Promotional activities both at domestic and export front.5

6. Setting up of IT portal for dissemination of information on all aspects of tea industry and trade..7. HRD programme for the people associated with tea cultivation and processing.8. Implementation of ISO and HACCP standards as a part of quality Assurance programme.To achieve the desired objectives in the above noted spheres, the Board would be operating the belownoted developmental schemes during the Annual Plan 2006-07. Through these schemes the Board wouldbe extending financial assistance by way of subsidy and grant in aid to the needy tea gardens.It may, however, be noted that the Tea Board’s role being that of a catalyst towards accelerating theproduction growth rate, the funds being provided under its various schemes are not meant for meeting theentire needs of the Tea Industry. Since the industry is composed of units of different sizes and of varyingeconomic strength, the developmental schemes are designed to cater to the necessities and requirementsof different segments according to their financial capabilities. The most important underlying principle is notto have water tight compartment approach but to accommodate all segments of the industry to the extentpossible.Development schemes implemented by the Tea Board:Scheme1. Tea PlantationDevelopment Scheme(Subsidy)ObjectiveProductivity improvement through replanting, rejuvenation pruning andconsolidation through infilling of vacancies, improvement of drainage andcreation of irrigation facilities, special focus on small tea gardens forenhancing productivity and quality, new planting in small growers sector intraditional and non traditional area, intensive mechanized pruning in smallholdings, setting up of pilot tea producers societies, etc. The financialpackage offered by the scheme include subsidy @ 25% of the unit cost asapproved by NABARD.2.Quality Upgradation To provide financial assistance to the needy tea gardens/factories forandProduct creation of facilities for product diversification like green tea and otherDiversification Scheme specialty teas, setting up of modern blending/packaging units, installation(Subsidy)of orthodox tea manufacturing machinery, electronic control devices forwithering and sorting machinery, replacement of old and worn outmachineries for CTC manufacture, obtaining ISO/HACCP/organic teacertification for tea manufacturing units/gardens and imparting training tosmall growers and Bought leaf factory owners in quality awareness.3. Market Promotion To assist tea producers/exporters for increasing domestic consumption andScheme (Subsidy)boosting export through various measures, generic promotion for new teamarkets as also for domestic consumption, brand promotion, introductionof Exporter Rating System, re-launching of the tea logos, protection ofIPRs.4. Human Resource To induct professionalism in plantation management, labour productivity,Development (Subsidy) skills improvement at all levels from workers to managers throughextensive training by recognized institutes and labour welfare measuresetc.5.Research and 1. Research: Assisting research projects of Tea Research Institutes and6

Development(Grant-in-aid)other recognized institutes on quality up-gradation, technology transfer forimproving productivity, value addition and product diversification, nutritionmanagement, tea and human health, setting up of quality controllaboratories etc.2.Development: Assistance for setting up training centers and advisorycenters for benefit of small growers, opening of new development offices ofthe Board for closer interface with small growers, strengthening of existingBoard’s offices, setting up of nurseries/demonstration plots for benefit ofsmall growers, study tours and workshops for small growers etc.3. IT Portal: setting up of a web based portal (www.Indiatea portal. com.)for dissemination of information pertaining to all aspect of tea industry andstrengthening auction system through introduction of appropriate electronicsystem etc.The scheme-wise financial outlay (Rs.Cr.) and Physical target (Area in hectare) for 2006-07:SchemeApproved10 th Planoutlay1. TPDS 98.59Financialoutlay for2006-07Expenditure up to31 stDecember,2006Physical haTarget Achievement uptoSeptember 0665002311.75New Planting: 400 New Planting: nilReplanting;1000 Replanting; 774.36Rejuvenation:3000 Rejuvenation:459.46Irrigation:1000 Irrigation:n.a.Self Help Groups: SelfHelp20Groups:n.a.26.00 15.4722.QU&PDS 76.80 40.00 14.900 410 units 106 units3.MPS 98.60 29.34 18.0744. HRD 06.01 1.29 0.75725. R&D 70.00 15.33 8.306. Total 350.00 111.96 57.517.Allocation for 140.00 57.33 24.40North East6. AED-Fund - 20.00 17.55TPDS: Tea Plantation Development Scheme; 2. QU&PDS: Quality Up gradation and ProductDiversification Scheme; MPS: Market Promotion Scheme; HRD: Human Resource Development Scheme;R& D: Research and Development; AED: Additional Excise Duty fund allocated for Orthodox Subsidyscheme and additional support for R& D Institutions.Note: Total Plan fund received from Govt. upto 31.12.2006 is Rs. 94.47 crores for regular plan scheme andRs. 20.00 crores for orthodox subsidy scheme and it is expected that the amount will be fully utilized beforeJanuary,2007.7

The scheme-wise financial outlay (Rs. Cr.) and Physical Target (Area in hect.) for 2007-08:SchemeProposed11 thPlan outlayFinancialoutlay for2007-08Physical Target (in hect.)1. TPDS 450.00 54.00 Under finalisation2. TQU & PDS 240.00 41.00 do3. MPS 130.00 35.00 do4. R&D 130.00 25.005. HRD 50.00 5.00Total 1000.00 160.00The scheme-wise budget proposal for 2005-06 and 2006-07 are as under(Rs. Cr.)SchemeBERE BEReason for variation between2006-07 2006-07 2007-08 (1) & (2)(1) (2) (3)Subsidy Schemes1. TPDS 26.00 26.00 54.002. TQUPDS 42.00 40.00 41.003. MPS 38.87 29.34 35.00 In view of time constraint inreceiving the funds anddisbursement schedule4. HRD 1.29 1.29 5.00Sub-Total 108.16 96.63 135.005. R&D 18.00 15.33 25.00Total 126.16 111.96 160.00Note :- TPDS = Tea Plantation Development Scheme, Market Promotion Scheme, HRD HumanResource and Development Scheme QUPD = Tea Quality up gradation and produceddiversification Scheme R C for Loan Scheme Revolving corpus for Loan Scheme .Financial performance for 2004-05 and 2005-06 (Rs. Cr.)Scheme 2004-05 2005-06A. Subsidy (10 th Outlay Expenditure Outlay ExpenditurePlan)(up to 30 thNov.,2005)1. TPDS 19.00 20.88 21.00 8.922. MPS 14.00 11.39 13.70 5.293. HRD 1.00 1.02 1.30 0.434. QUPD 15.00 13.38 20.00 5.84Total 49.00 46.67 56.00 20.488

B. Grant-in-aid1. R&D 21.00 18.53 19.00 10.35Total 70.00 65.20 75.00 30.83NOTE TPDS = Tea Plantation Development Scheme, Market Promotion Scheme, HRD HumanResource and Development Scheme QUPD = Tea Quality up gradation and produceddiversification Scheme R C for Loan Scheme Revolving corpus for Loan Scheme .** Fund was not released during 2002-03 since the scheme was approved in August, 2003 andimplemented from 1.09.2003.Physical achievement pertaining to field related activities during 2002-03, 2003-04 & 2004-05.Scheme Activity Area achieved (in Hect.)2002-03 2003-04 2004-051. TPDS Replanting/Replacement 4606.144793.21 4893.84planting/Rejuvenation Pruning (New Planting: (New Planting: (New& Consolidation, New plantingin traditional States by smallGrowers, setting up of smallgrowers products societies etc.1167.70)(Replanting852.44)(Rejuvenation:1372)(Replanting945.21)(Rejuvenation:2. MPS* Promotional support both atdomestic and export3. QUPDS Quality upgradation byreplacement of old machineryin tea factory, setting up of newprocessing and packaging unit,obtaining ISO/HACCP/Organictea certification, qualityawareness programme for BLFand small growers etc.2586)SelfGroups: 20HelpApproved onlyduring August,2003* Achieving export target is the main objective of the Scheme.2476)Self HelpGroups: 307 Units availedthe Scheme.Planting:1727.13)(Replanting2098.04)(Rejuvenation:1068.67)Self Help Groups:20188 units availedthe scheme.TPDS = Tea Plantation Development Scheme, Market Promotion Scheme, HRD Human Resource andDevelopment Scheme QUPD = Tea Quality up gradation and produced diversification Scheme R C forLoan Scheme Revolving corpus for Loan Scheme .9

Tirumalai and a Tea Room at Tamil Nadu Secretariat, Chennai, which presently serve mainly as publicrelation platforms and serve high quality Indian teas at such venues frequented by VIPs, Foreign visitorsand other guests. Tea Board has also opened another Tea Centre at Chennai Moffusil Bus Terminus,Koyambedu. Tea Board had earlier conducted a pilot campaign in Kolkata targeted at youth and captioned‘Rediscover Tea’. A domestic campaign on a larger scales is planned for implementation.(B)Outside IndiaActivities under this head are grouped broadly under (I) Generic Promotion and(ii) Indian Tea Promotion.(iii)Generic PromotionFor promotion of tea as a beverage vis-à-vis other drinks, generic promotion is conducted throughTea Councils set up jointly by producing countries and local tea trade. India is currently a member ofthe Tea Councils of U.K., Germany, USA and Canada and also the International Tea Committee,London. As part of Tea Council’s generic programs Indian and Sri Lankan teas are being promoted toa large extent.(IV)Indian tea promotion.Indian tea promotion is aimed at improving the position of Indian tea and its image in the worldmarket. Such activities are conducted by the Tea Board mainly through its overseas offices at London,Moscow, and Dubai. The medium of promotion includes (a) media advertising (b) participation ininternational Fairs and Exhibitions (c) Buyer- Seller Meets (d) store demonstrations (e) promotionalsupport to Indian Exporters as also to foreign importers for marketing of pure Indian tea brands and (f)organizing visits of tea delegations to and from India and (g) public relations. Export of value-addedteas, mainly Indian tea in branded form in consumer packs, tea-bags, and chest lets etc. and bioorganictea, instant tea, green tea etc. are thrust items in such promotional programmes. Specialpromotional events are proposed to be stepped up to give support to such tea brands containing pureIndian tea and speciality Indian tea. Tea Board’s distinguishing logos as identity of pure Darjeeling,Assam and Nilgiri teas are proposed to be highlighted during the promotional programmes.LABOUR WELFARE:As a welfare measure, the Tea Board operates different Labour Welfare programmes andschemes for the benefit of the Tea Plantation Workers and their dependents. The Labour Welfare activitiesundertaken by the Board are supplemental in nature and they cover those areas not covered by thePlantation labour Act and the rules framed thereunder. The welfare activities of the Board are broadlyclassified under two major schemes viz. (1) Educational Stipend and Nehru Award and (2) GeneralWelfare.Under the Educational Stipend scheme, the wards of tea garden workers are given grant forprosecuting studies above primary stage. Tuition fees and two third of hostel charges are paid on the basisof actual expenditure for the wards of tea plantation workers directly employed in the registered teaestates and governed by Tea Plantation Labour Act provided the monthly wages and income of the11

parents do not exceed Rs. 10,000/- per month and also the number of children would not exceed two perfamily. Under the Nehru Award Scheme Tea Board provides lump-sum grant @ Rs. 2000/- and Rs,2500/- towards educational expenses for the wards of tea plantation workers securing at least 60% marksin Madhyamik or equivalent and H.S. or equivalent examinations and for prosecuting further higher studiesin degree course respectively. This is applicable to only wards of these tea plantation workers whoseannual income do not exceed Rs. 48000/-. A sum of Rs. 18,98,156/- was disbursed under the schemesduring 2004-05.GENERAL WELFARE:The scheme provides financial assistance to educational institutions, hospitals, health clinics,Indian Red Cross Society, St. John Ambulance, etc.for extension of health centers, hospital etc. and forextension of educational and vocational training and specialized treatment facilities for the benefit of thetea garden workers and their family members. The scheme also provides for financial assistance fordevelopment of scouting & guiding activities and encouragement of sports etc. amongst the tea gardenworkers. Board’s welfare programmes also includes provision for maintenance/repair grant for majorrepairs and renovation work to educational institutions, which have received capital, grant earlier. Underthe General Welfare Scheme the Board also provides financial assistance to disabled plantation workersand their dependents for purchase of crutches, artificial limbs, caliper shoes, hearing aids, etc. Under thescheme the Tea Board disbursed total amount of Rs. 87, 72,150/- for the year 2004-2005.Various programmers are expected to be undertaken in the coming year 2006-2007 to flourish thelabor welfare schemes as targeted subject to approval of the Board.PHYSICAL & FINANCIAL ACHIEVEMENTS: 2006-07NAME OF THE SCHEME________________________Annexure-1.Target given in out comingBudget 2006-071 st Quarter2 nd Quarter3 rd Quarter4 th QuarterAchievement(2006-07)Achievement in(2005-06)Achievement(2004-05)• Reasons for under performance for each quarter if any for the year 2006-0712

Annexure-1.PHYSICAL & FINANCIAL ACHIEVEMENTS: 2006-07NAME OF THE SCHEME ( TEA BOARD)Plantation development Scheme(Fig. in Rs. Crores)Target given in out comingBudget 2006-07Plant.Dev.SchemeAchievement(2006-07)Upto 31 Dec 06Achievement in(2005-06)Achievement(2004-05)26.00 15.47 22.08 20.871 st Quarter 1.49 2.23 1.062 nd Quarter 5.68 2.36 2.053 rd Quarter 8.40 8.00 2.184 th Quarter na 8.74 15.56Annexure-1.PHYSICAL & FINANCIAL ACHIEVEMENTS: 2006-07NAME OF THE SCHEME ( TEA BOARD)QUPDS Scheme(Fig. in Rs. Crores)Target given in out comingBudget 2006-07Qualityupgradation &PrductDiversificationschemeAchievement(2006-07)Upto 31 Dec 06Achievement in(2005-06)Achievement(2004-05)40.00 14.90 20.63 13.381 st Quarter 2.41 1.75 02 nd Quarter 4.94 3.32 1.173 rd Quarter 7.56 3.07 3.044 th Quarter na 12.34 9.1713

PHYSICAL & FINANCIAL ACHIEVEMENTS: 2006-07NAME OF THE SCHEME ( TEA BOARD) Market Promotion Scheme(Fig. in Rs. Crores)Annexure-1.Target given in out comingBudget 2006-07MarketPromotionSchemeAchievement(2006-07)Upto 31 Dec 06Achievement in(2005-06)29.34 18.07 13.64 11.391 st Quarter 4.06 1.68 1.162 nd Quarter 5.04 1.61 2.12Achievement(2004-05)3 rd Quarter 8.96 2.40 1.654 th Quarter na 7.99 6.46Annexure-1.PHYSICAL & FINANCIAL ACHIEVEMENTS: 2006-07NAME OF THE SCHEME ( TEA BOARD) Human resource development Scheme(Fig. in Rs. Crores)Target given in out comingBudget 2006-07Achievement(2006-07)Upto 31 Dec 06Achievement in(2005-06)HRD 1.29 .7572 .87 1.021 st Quarter .18 .014 .392 nd Quarter .34 .136 .173 rd Quarter .24 .44 .054 th Quarter na .71 .41Annexure-1.PHYSICAL & FINANCIAL ACHIEVEMENTS: 2006-07NAME OF THE SCHEME ( TEA BOARD)Research & Development Scheme(Fig. in Rs. Crores)Target given in out comingBudget 2006-07Achievement(2006-07)Upto 31 Dec 06Achievement in(2005-06)R&D 15.33 8.30 17.13 18.531 st Quarter .3911 3.44 4.602 nd Quarter 5.15 3.47 2.883 rd Quarter 2.76 3.65 2.274 th Quarter 6.57 8.78Achievement(2004-05)Achievement(2004-05)14