CM to call meet to address coffee growers' woes

The Karnataka chief minister will call a core committee meeting of senior ministers and officials within the next 15 days to resolve the coffee growers' problems.

Inaugurating the 46th annual conference of the Karnataka Planters' Association (KPA) on Saturday, chief minister Dharam Singh said that the meeting will have deputy chief minister and finance minister Siddaramaiah, the finance secretary and representatives from the various growers association.

Dharam Singh's move comes in the wake of a severe fall in the coffee prices over the last few years, thanks to a global surplus.

He promised the growers that the core committee meeting will deliberate on all issues raised by KPA chairman A S Shankare Gowda at the conference.

Earlier in his address, Gowda requested the government to bring the agriculture income tax (AIT) on par with the central income tax and to exempt medium growers (holding 51 to 150 acres), who had opted for the composition scheme "" where a flat rate is levied based on acreage "" from AIT. Currently AIT for corporate estates stands at 50 per cent and for partnership/individuals at 40 per cent.

Dharam Singh said that AIT exemption for those holding up to 100 acres will be considered along with the Coffee Board's proposal to scrap the purchase tax.

Besides, he said he will get officials to speed up the process of issuing the order on the waiver of interest on loans taken by small and marginal farmers from co-operative banks provided the principal is returned.

The state recently announced the scheme to lift the sagging fortunes of the small grower.

Earlier, Union minister of state for planning M V Rajasekharan promised to take up with the Centre KPA's appeal to expedite the coffee growers' bail-out package and also the plea to scrap the additional excise duty on tea.

He added that he will represent the growers request to exempt plantation products from the 12.5 per cent revenue neutral rate under the planned VAT and classify it under the four per cent band.