Madikeri: delegation of coffee growers has demanded the Centre to implement schemes to revive the sector as more than a lakh growers are facing a number of challenges including price crash, fall in production and increasing cost of production.

Meeting Union Finance Minister Nirmala Sitharaman, Karnataka Growers’ Federation, an organisation of coffee planters in Hassan, Chikkamagalur and Kodagu, has appealed to her to instruct banks to restructure the loans.

The delegation was led by Federation President H.T. Mohan Kumar, Secretary K.B. Krishnappa, Organising Secretary K.K. Vishwanath, MP Tejaswi Surya, coffee grower Pradeep Poovaiah and former MLA H.M. Vishwanath.

The delegation told the Minister that  long-term measures have to be taken up to revive the coffee plantation sector. They said the Reserve Bank of India had instructed the nationalised and private banks to restructure loan accounts in the wake of natural disasters. However, several banks were hesitant to do so.

The delegation demanded that the loans related to coffee cultivation be kept out of the ambit of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 otherwise the planters would continue to lose their land as many had been getting demand notices and possession notices under this Act.

Coffee production had fallen by around 40 percent even as input costs had increased. Consistent, non-remuneration for drought, natural calamities like floods and landslides and high incidence of pests and diseases, non-availability of credit and the exorbitant cost of labour had forced traditional coffee farmers to abandon their plantations, they told the Minister. 

Lockdowns due to the pandemic have resulted in a disaster to coffee growers and industry. The lockdown has disrupted normal plantation activities, curing, trading and export of coffee. Due to this, the growers are facing a severe fund crunch and cash flow concerns, they said. 

The current interest rate on crop loans was too high, said the delegation and urged the Minister to bring it down to 3 percent for the already borrowed and future loans. They sought restructuring of all crop and development loans given to coffee growers into a single-term loan. The repayment period should be extended for a period of nine years with a two-year moratorium. 

The Fasal Bima Yojana should be applicable to coffee as well, they said and urged the Minister to announce a package for coffee planters on the lines of the relief announced for Micro, Small and Medium Enterprises.