CHENNAI: The State government has sanctioned a special grant of Rs 5 crore to the Tamil Nadu Small Tea Growers’ Industrial Cooperative Tea Factories’ Federation (INDCOSERVE) as the body is in dire financial straits. This amount would be passed to the 13 industrial cooperative tea factories to settle the green leaves cost dues to small tea growers of the Nilgiris district till April 2022.
The special grant has been sanctioned subject to the conditions that INDCOSERVE and the industrial cooperative tea factories take urgent measures to improve the quality of leaf procured and also to engage with the Tea Board to ensure the reasonability of the price fixed for tea leaves. Further, a comprehensive restructuring package/proposal for the functioning of INDCOSERVE must be taken up.
The G.O issued by MSME secretary V Arun Roy on May 10 said the Industries Commissioner and the Director of Industries and Commerce have said that various factors including the difference in the price paid to the tea growers and the workable rate, the obsolete machinery and poor quality of leaf procured over the years have landed the industrial cooperative tea factories in dire financial straits now.