The government has formed a high-level committee to provide recommendations on rescheduling existing loans of tea garden owners, arranging new financing, and establishing a revolving fund at a 6% interest rate for the tea industry.
Additionally, the committee will evaluate and provide opinions on declaring tea an agricultural product and assessing the potential for commercial solar power generation on unused tea garden lands.
According to a notification issued by the Prime Minister's Office on Sunday, the 'Monitoring and Advisory Committee for the Development of Bangladesh's Tea Industry' has been constituted.
The Minister of Commerce will serve as the Chairman, and the Secretary of the Ministry of Commerce will act as the Member-Secretary.
The notification specifies that the main responsibility of the committee will be to identify existing problems in the tea industry and suggest necessary solutions.
In particular, it will recommend measures to reschedule existing cash credits to ease the debt burden on tea garden owners. The committee will also assess whether opportunities can be created to grant fresh loans to these estates.
High priority has been given to creating a revolving fund at a 6% interest rate to tackle the financing crisis in the tea sector.
The committee will submit recommendations regarding the feasibility, structure, and effective management of such a fund.
The committee has also been tasked with integrating the tea sector more effectively with agriculture.
It has been directed to review and submit a report on whether tea can be officially declared an agricultural product.
Stakeholders believe that recognizing tea as an agricultural product could expand access to various government assistance programs, incentives, and financing opportunities for the sector.
Furthermore, the committee will explore the potential for commercial solar power generation using unutilized lands in tea estates.
It is required to report and share opinions on whether setting up solar panels on lands outside primary tea production activities can create additional income streams and electricity generation opportunities.
The notification directs the committee to submit its report within the next 30 days.
The committee includes top officials from key government ministries and agencies, alongside representatives from tea industry organizations. Members include the Principal Secretary to the Prime Minister, the Governor of Bangladesh Bank, the Secretaries of Land, Finance, Commerce, and Agriculture ministries, the Chairman of the National Board of Revenue (NBR), and the Chairman of the Bangladesh Tea Board.
Additionally, the Chairman of the Bangladesh Tea Association, former Member of Parliament M. Ohidul Haq, the Chairman of the Tea Traders Association of Bangladesh, the Chairman of the Tea Planters and Traders Association of Bangladesh, and the President and General Secretary of the Bangladesh Bought Leaf Tea Factory Owners Association have been named members.
According to tea industry insiders, the country's tea sector has long faced financial crises, debt pressure, rising production costs, and challenges in maintaining the productivity of aging plantations.
Under these circumstances, providing loan rescheduling opportunities, low-interest new financing, and a special fund could relieve some of the financial burden on garden owners. It may also open avenues for fresh investment and increased production.
Specifically, launching a 6% interest revolving fund is expected to assist tea gardens in coping with working capital shortages and production cost pressures.
Moreover, implementing solar power projects on unused lands would allow tea estates to generate an alternative source of income.