January 17, 2002
'16'
INTEREST SUBSIDY SCHEME FOR COFFEE GROWERS APPROVED
TRANSPORT SUBSIDY ON COFFEE EXPORTS, RESCHEDULING OF LOANS ON THE ANVIL
HIGH-POWERED DELEGATION CALLS ON MARAN
The government has approved an Interest Subsidy Scheme for the coffee growers for the current year under which 5% interest subsidy will be provided to small coffee growers on the working capital or crop loans availed by them. Internal transport subsidy on coffee exports, rescheduling of crop loans and steps to boost domestic consumption of coffee were amongst the measures announced by Shri Murasoli Maran, Union Minister of Commerce & Industry, at a meeting with high-powered delegation of coffee growers which called on him, here today. The delegation apprised the Minister of the difficulties faced by the coffee growers owing to steady decline in prices, which is also a global phenomenon. Shri Maran also assured that some other suggestions made by the delegation including raising the WTO tariff binding on coffee from 70% to 100% would be taken up with the Finance Ministry. The delegation urged the government to introduce Minimum Support Price (MSP) based on the Kerala model. Shri Prabir Sengupta, Commerce Secretary and Shri L.V. Saptharishi, Additional Secretary were present in the meeting.
The delegation consisted of Shri B. L. Shankar, Chairman, KLC; Smt. Motamma, Minister for Women & Child Development; Smt. Suma Vasanth, Minister for Planning; and office bearers of Coffee Growers Federation of Karnataka.
The government has already taken a number of steps for the benefit of coffee growers. These include various initiatives taken to encourage marketing of coffee in collaboration with cooperative societies such as NDDB, GCMMF (Amul) etc. to increase domestic consumption; implementation of various developmental schemes by the Coffee Board under which various types of financial/technical assistance are provided to the coffee growers; waiver of penal interest to the extent of Rs.9.84 crore on the developmental loans given to farmers; rescheduling of crop loans of coffee growers by commercial banks; and raising of import duty on coffee from 35% to 70% to safeguard the interests of the domestic industry from undue surge in import of coffee in the wake of lifting of QRs. The Coffee Board has drawn up a Medium Term Export Strategy by engaging a private consultant, M/s. Mckinsey & Co., to sustain and gain market share in the key markets and also to improve the competitiveness of Indian Coffee in the global markets over the next few years.
Coffee is one of the major plantation crops of India and is predominantly grown in the States of Karnataka, Kerala and Tamil Nadu. These three States account for 99% of coffee production in India, out of which about 70% is produced from Karnataka alone.