Board seeks subsidy for replanting coffee

The Coffee Board of India is taking various measures to boost productivity in the coffee-growing regions of the country which otherwise is witnessing a declining trend of productivity in the last one decade.

Measures like subsidy for replanting operation along with provision for insecticides in concessional rates are some of the steps taken up by the board in recent time.

The board is also actively considering to bring in changes in the subsidy regime through inclusion of corporates under the replanting scheme.

“We are aware of the fall in productivity of coffee in recent time. To boost productivity, we are giving up to 50 per cent subsidy to small farmers for replanting along with insecticide subsidy given to them for controlling stem borer,” Jabir Asghar, vice-chairman of Coffee Board, said.

He, also, said erratic weather, pest attack and labour shortage were the major reasons for falling productivity in the coffee plantation area.

Average coffee productivity has witnessed a 10 per cent fall in recent time as compared to 2000-01 level. 

As per data available with United Planters Association of Southern India (UPASI), average productivity of coffee declined to 796 kg per ha during 2005-10 period, a fall of 9.85 per cent from 883 kg per ha during 2000-2005 period. 

Arabica variety witnessed a fall of 16 per cent to 601kg per ha in 2005-10 period as compared to 717kg per ha in 2000-05 period. Similarly, robusta variety dipped 7.2 per cent to 951 kg per ha during this period.

Further, Indian coffee productivity of 766 kg per ha in 2008-09 season, is not only lower than the world average of 847 kg per ha, but also 2.6 times lower than a young coffee country like Vietnam with a productivity of 1,989 kg per ha and 1.6 times lower than Brazil with a productivity of 1,259 kg per ha.

To check the fall in productivity, Coffee Board is actively encouraging re plantation in coffee planting areas.

“Some of the coffee plantations are 30 -50 years old. These areas need replanting to increase productivity along with resistance to various plant diseases,” another official of Coffee Board said.

He said Coffee Board would propose to cover 80 per cent of replanting expenditure of coffee planters by the government with covering of corporates under the new scheme.

Presently, replanting scheme run by Coffee Board covers up to 50 per cent expenditure of small coffee planters and doesn’t cover big planters.

However, big planters are asking for a similar deal like tea replanting scheme which covers both small and big tea planters.

Referring to labour shortage, Asghar said that the board had submitted a proposal before Commerce ministry to decrease import duty on machineries used in the coffee industry.

“We are hopeful that there will be budgetary allocation for mechanisation in the next budget,” he added.