Confirming the development, Tea Board chairman Basudeb Banerjee told ET: "The finance ministry and Planning Commission have approved the subsidy scheme for orthodox production for the 11th Plan. The scheme will be effective from April 1, 2007 to March 31, 2012." The scheme envisages a subsidy of Rs 3 for every kg of orthodox tea production. If the orthodox tea maker produces any extra orthodox tea from his current production level, he will get an additional Rs 2 per kg subsidy.

The industry is upbeat about this development. "This is a good move by the central government. Time has come when producers should focus on more orthodox tea to gain a substantial foothold in the export market. Global consumption of tea is increasing and India should take advantage of the situation," said Vinay Goenka, president and managing director of Warren Tea. Incidentally, Warren Tea is the largest producer of orthodox tea in the country.