Coffee growers have urged the Union ministry of commerce to waive an accumulated and capitalised interest of Rs 160 crore on special coffee term loans (SCTL) taken by small and medium growers from 2006 till June 30, 2011. They have also asked the ministry to reschedule the balance loan.
“Growers had borrowed loans under the SCTL package in 2002 with a repayment period of nine years. With one year remaining, we are still finding it difficult to repay the loan and have asked the government to waive the interest accumulated,” said Sahadev Balakrishna, chairman, Karnataka Planters’ Association (KPA).
Addressing a press conference here on Tuesday, he said the plantation industry faces severe shortage and high cost of labour, a strain on water resources, environmental and quality concerns and a need to replant old plantations.
“We have been going through a difficult phase — heavy unserviceable debts, rampant pests and diseases like coffee berry borer, white stem borer and leaf rust, shortage and high cost of fertilizers, high input costs and unpredictable weather conditions. These have resulted in significant crop loss, bringing down the production and productivity, especially of arabica,” he said.
Planters have also urged the Karnataka government to exempt partnership companies from payment of agricultural income tax (AIT). Most partnership companies consist of family members who have formed these for better and convenient management. This will enable them to reinvest whatever little surplus is available back into their plantations. Presently, only individuals are exempted from AIT payments in the state, while neighbouring Tamil Nadu has abolished the AIT Act, Balakrishna said.
KPA has also urged the Union ministry of agriculture to approve the Spices Board proposal for development of pepper plantations. Both the Karnataka government and the Board had given a proposal to the National Horticulture Mission for a Rs 120-crore package to improve pepper plantations in the state, he said. Karnataka accounts for about 40 per cent of India’s 50,000 tonnes of pepper production annually. The package is sought to enable planters to go for development of new plantations and replant pepper vines.