January 11, 2007	Thursday	Zilhaj 20, 1427

KOLKATA, Jan 10: India's junior trade minister said on Wednesday the country's tea productivity would grow by 30 to 50 per cent in 5 to 7 years with the help of a $1.1 billion fund being set up for the industry.

The Rs47.61 billion ($1.1 billion) fund would be set up within the next six months, a director of India's state-run tea board said.

“We hope with the tea rejuvenation package in place, the tea production would increase manifold,” junior Trade Minister Jairam Ramesh said.

“Without the special-purpose tea fund, the tea industry is doomed. It is the only way to improve productivity as many countries are doing the same.

India is estimated to have produced 945 million kg of tea in 2006, up about 2 per cent from 928 million kg in 2005. Final figures are still being calculated.

Many tea plantations were set up in the British colonial period before 1947, and the ageing plants have become less productive over the years.

The government has said fund was aimed at not only boosting productivity, but also lowering the cost of production and improving the quality of tea leaves to fetch higher prices.

Ramesh said India planned to boost its tea trade with Pakistan, targeting exports of 30 million kg in five years from 18 million now.

Four trade centres, backed up with infrastructure such as warehouses, would be set up near the borders of neighbouring Pakistan, Nepal, Bangladesh and Myanmar to help boost exports.—Reuters