Coffee Board for early release of debt relief

Untimely rains damage 30-40% Arabica crop

The recent heavy rains and subsequent damage to the standing coffee crops in parts of Karnataka has prompted the Coffee Board to recommend the government to announce the long-pending Coffee Debt Relief Package at the earliest.

The board, which met here, said more than the damage to the standing crop, the growers may be affected due to the pre-mature blossom in major growing areas.

It is estimated that nearly 30-40 per cent of the Arabica cherries and 10-20 per cent of the robusta crop have been lost following the unseasonal and widespread heavy rains between December 25th and December 30 last year, in some coffee growing regions of Karnataka including Chikmagalur, Sakaleshpur and Kodagu. Overall, an estimated 30,000 tonnes of coffee output has been lost due to the rains.

 

“The widespread occurrence of heavy rains in the middle of the harvest has aggravated the condition of the growers to deal with the overdue loans which have already become NPAs in several cases further choking the credit lines even for the working capital loans for the coming season,” Coffee Board said in a statement.

In view of this, it is necessary to announce the coffee debt relief package to growers who have for long been seeking a bail out package, which is under active consideration of the government, to come out of the accumulated debt burden, the board said.

The total loan owed by the coffee industry to banks is around Rs 1,700 crore.