At the behest of the Government of India, the commercial/cooperative banks have rescheduled the crop loans of coffee growers and are also extending fresh working capital loans to coffee sector, as a relief to the growers so that production operations do not get affected in the interest of exports.

    An interest subsidy scheme with an outlay of Rs. 4.50 crores to be implemented by the Coffee Board during 2001-02 has since been approved by the Government of India under which 5% interest subsidy to targeted small coffee growers (having holdings of 10-hectares and below) on working capital/crop loans availed from financial institutions, will be provided .

    Government of India has also approved the proposal for implementation during the current year for providing internal transportation subsidy @ Rs. 500 per tonne to coffee exporters, aimed at sustaining the performance of coffee exports and to retain the market share of Indian coffee in the global markets. Budgetary outgo on this account is estimated to be Rs. 3 crore for the period January-March 2002 and it is bound to benefit the growers whose stocks will be lifted by the exporters with the incentive available under this Scheme.

    Coffee Board has also drawn up a medium-term export strategy by engaging an international consultant, M/s. McKinsey & Co. to advise on sustaining and securing higher market share in the key markets and also to improve the competitiveness of Indian Coffee in the global markets over the next few years.

    The GOI has already waived the penal interest to the tune of Rs. 9.84 crores on the developmental loans given to coffee growers by the Board and the Board is, for the present, also not charging any compound interest on the development loans.

    The import tariff rate on coffee has already been increased from 70% to 100% to protect the domestic industry from undue surge in import of coffee in the wake of lifting of QRs.

    With the lifting of QRs, the Government of India is taking all steps to ensure that cheaper coffees are not dumped in India by involving all suitable tariff and non-tariff measures available to us. Coffee has also been placed in the list of sensitive items, import of which is being closely monitored.

    The Government of India/Coffee Board has taken initiative to encourage procurement and marketing of coffee by COMARK in collaboration with co-operative societies viz. NDDB and GCMM etc.

    Various developmental schemes are being implemented by the Coffee Board under which various types of subsidies/financial assistance are provided to the coffee growers for development of coffee. One such scheme is Small Sector Development Scheme under which subsidy for quality upgradation and water augmentation is given to small coffee growers.

    Thrust is given for increasing productivity of coffee particularly in the small sector and also for improving quality of coffee.

    Simultaneously, the Board is encouraging large growers to produce specialty coffee, which fetches premium in the world market.