The National Bank for Agricultural & Rural Development (Nabard), a central government enterprise, has directed cooperative banks to extend low-interest loans to small tea growers in north Bengal.
The directive, which comes before the Assembly elections, will benefit around 50,000 small tea growers of the region. The scheme will be implemented by the Jalpaiguri Central Co-operative Bank, headquartered in Jalpaiguri.
Sourav Chakraborty, chairman of the bank, said on Tuesday that the small tea garden owners or those operating collectively under cooperative societies would be eligible for loans of ₹1.43 lakh per person at an interest rate of 7 per cent.
“If the borrower repays the full amount within one year, the interest rate will be reduced to 4 per cent. In the second year, an additional loan of ₹64,000 will be extended to the borrower at the same interest rate (7 per cent),” he said.
Chakraborty said their bank has been providing loans to cooperative societies for various crops.
“However, despite repeated requests from small tea growers over the years, loans could not be sanctioned so far because tea was not categorised under agriculture by Nabard. Now, with the recent approval, loans can be disbursed upon submission of land documents and identity proof to the growers. It would be a boost for small tea cultivation,” he added.
The small tea sector contributes over 50 per cent of the total tea produced in north Bengal in a year.
Sources in the bank said Nabard has placed the scheme under its refinance
mechanism.
“For the first time, small tea growers will be able to access institutional credit for setting up new tea gardens, maintaining tea plants, irrigation, and overall garden development,” said a source.
Representatives of the growers have welcomed the decision. Rajat Ray Karji, the president of the Jalpaiguri District Small Tea Growers’ Association, said that growers had been demanding low-interest loans for a long time.
“The scheme will largely benefit marginal tea farmers. We will extend Nabard all possible cooperation,” he said.
However, development also led to a political debate between the Trinamool Congress and the BJP.
Claiming credit, Bapi Goswami, a senior BJP leader based in Jalpaiguri, said: “Trinamool has often accused the Centre of neglecting the tea industry, but the new initiative through Nabard nullifies it. It is the Centre that has acted in the interest of small tea growers.”
Countering it, Chandan Bhowmik, a vice-president of Trinamool in the district, said: “As far as we know, the proposal to include small tea growers was sent by the state government to Nabard and now it has been approved. The BJP is simply trying to take undue credit ahead of the polls.”
Bhowmik pointed out that the BJP government at the Centre had halted funds for different social welfare schemes in Bengal.
