The Asian Development Bank (ADB) Monday lent US$ 30 mn towards uplifting the productivity and financial viability of the plantation sector.
Around US$ 10 mn of this would go towards setting up a Plantation Development Fund to invest in convertible debt and equity instruments of plantation companies.rn
rnPlantation companies will be eligible for the balance US$ 20 mn to raise the social standards of 265,000 estate workers, on condition that they lower their management fees.rn
rnDespite plantation companies reporting a loss in 2001, management companies paid themselves around Rs. 900 mn by way of management fees.rn
rnSince taking over the management of the plantations and recouping investments through dividends, companies also charge a management fee. The formula ranges from a percentage on a companys turnover to a slice on the green leaf intake.rn
rnIncidentally, the management fees itself are not regulated. This system is also open for manipulation, since fees are slapped at the discretion of t