Planters' body demand mechanisation subsidy

The Karnataka Planters’ Association (KPA) has appealed to authorities like the Coffee Board and the state government to implement the 50 per cent subsidy scheme for mechanisation along with exemption of agricultural income tax for partnership firms.

“We appeal to the Coffee Board to implement a 50 per cent subsidy scheme on mechanical harvesters, power weed cutters, sprayers, coffee processing machines, dryers among others to boost mechanisation in the plantation sector that will increase productivity,” Sahadev Balakrishna, chairman of KPA said.

He said the subsidy scheme should include small, medium and large growers of legal entities like partnership firms, cooperatives and corporates.

Mechanisation in the coffee sector is emphasized in the recent time on the back of falling productivity levels of the commodity. Also, this step will help in overcoming the problem of labour shortage faced by the plantation sector.

“We have given our representation to the Coffee Board regarding this matter and are hopeful of receiving a favourable view from the Board,” he added. KPA has also demanded before the state government to exempt agricultural income tax on partnership firms.

“Presently, agricultural income tax is exempted for individual coffee growers. However, it is taxed for the partnership firms. So, we demand before the state government to exclude partnership firms from taxation as partnership firms in coffee sector are not formed as a business concern but to keep the family land holding within family,” Balakrishna said.

As Tamil Nadu has recently abolished agricultural income tax for all categories of plantations, may it be in individual capacity, partnership firm or in company, Karnataka should follow the model, he added.

He also said the exemption would help in investing the surplus amount in coffee estates.

Referring to post-blossom estimate of coffee, Marvin Rodrigues, vice-chairman of KPA, said, the arabica coffee production would be dropped by 10 per cent from earlier estimate due to untimely rain fall in the major coffee growing regions of the state.

Coffee Board has pegged arabica production at around 99,000 tonne in their previous estimate and will come out with the post-blossom estimate by mid-December.

He, however, said that exports were robust as of now and were expected to maintain the momentum in the current fiscal.