Cabinet approves govt intervention to stabilize tea price

The proposal made by Minister of Plantation Industries, Naveen Dissanayake, to allocate required funds to purchase 1km of quality tea for Rs. 430/- from the auction by the Sri Lanka Tea Board, has been approved by the Cabinet of Ministers.
 
According to crisis situations in Ceylon Tea importing countries from the commencement of the year 2015 it has recorded a low price in tea.
 
Although the production cost of a kilogram of tea is Rs. 450 the auction recorded a price of Rs. 385.51. 

A programme to provide a certified price for tea was implemented with an expenditure of Rs. 6,000 million. In this context the government has to intervene in stabilizing the tea price as well as providing subsidies.
 
“In 2008 the government has controlled the reducing of tea price by purchasing tea from auction. Based on that experience, the proposal made by Minister Dissanayake, to allocate required funds to purchase 1km of quality tea for Rs. 430/- from the auction by the Sri Lanka Tea Board, was approved by the Cabinet of Ministers.” 

“The government will suspend purchasing once the price reaches the limit of Rs. 450,” according to the government.