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| Friday, 11 April 2003 |
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Tea market stabilisation scheme after next auction The proposed independent body to carry out the Tea Market Stabilisation scheme will come into effect following the next tea auction scheduled to be on April 22 and23, Plantation Industries Ministry sources told the Daily News. The proposal put forward by former Tea Board Chairman Chrisantha Perera at a discussion chaired by Faiz Mohideen, Acting Secretary to the Treasury has been accepted by all stakeholders of the tea industry including the Colombo Tea Traders' Association, Planters' Association, Tea Exporters' Association, Private Tea Factory Owners' Association, Sri Lanka Federation of Tea Smallholdings Development Societies and Colombo Brokers' Association. The scheme proposed to minimise losses incurred by producers and growers due to declining tea prices and poor demand as a result of the war in Iraq is supported by the Ministry of Plantation Industries, Sri Lanka Tea Board and the Bankers. Under this scheme a company will be set up under the Tea Association of Sri Lanka (TASL), with an independent Board of Directors with the sole objective of purchasing teas, which remain unsold at the weekly tea auctions. However, the company will not interfere with the normal weekly buying pattern at the auctions and will not substitute normal commercial interactions with any segment of the industry. Unsold teas will be evaluated by a panel comprising Chrisantha Perera, Niraj de Mel, CEO of the TASL and representatives from eight tea broking companies. It is expected to hold teas purchased through this scheme for three to five months before disposal. Funds for purchasing unsold teas will be provided by a consortium of banks made up of the Commercial Bank Ltd, Sampath Bank, Bank of Ceylon, People's Bank, Hatton National Bank, Seylan Bank, DFCC Bank, NDB Bank and the Plantation Industries Ministry. The consortium has pledged up to Rs.1.25billion for this scheme. (CK) |
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