Govt mulls relief package

After announcing initiatives for tea sector in the supplement to the national foreign trade policy, the government is now preparing a relief package for coffee sector - hit by disease and debt burden.

Aimed at providing relief to coffee growers, especially small growers, the package will be unveiled in the current budget session and is likely to include rephasing/rescheduling the all types of coffee loans""short, medium and long-term, official sources said.

The package could also have some initiatives by Coffee Board to enhance exports from the country.

Coffee sector has been facing problems in the last few years due to fall in global coffee prices. The government had in fact announced a relief package in 2002 also to address the woes of the sector.

However, the sector that was impacted by the stem borer is still reeling under huge debt burden even though international prices have started looking up.

This package is being designed so that small growers reeling under debt burden can reap advantage of this rise in prices.

Not just the international prices but the domestic prices are also witnessing an upper trend and going by analysts forecast, the movement will continue in near future.

International prices are witnessing new highs riding on the expectations of a fall in production in coffee exporting countries such as Brazil, Vietnam and Indonesia during October-September, 2005-06, analysts said.

India, which mainly produces robusta variety of coffee witnessed a 7.97 per cent decrease in production at 2,49,761 tonnes.