Cabinet committee approves Rs 310cr coffee programme

Rs 100 crore allocated for replantation, Rs 90 crore set aside for subsidy.

The Cabinet Committee on Economic Affairs (CCEA) has approved the Rs 310 crore coffee development programme to be implemented over a period of five years.

Announcing this, Union Minister of State for Commerce Jairam Ramesh said, "The main focus of this programme is to address replantation, quality upgradation and pollution abatement in the coffee growing regions in addition to propagation of coffee in non-traditional areas (NTAs)."

During the 10th five year plan, the development support to the coffee growers in the traditional areas was largely confined to small growers (with land area of two hectares and below). "However, in the last year of the plan period, it was extended to cover holdings up to 20 hectares," he added.

According to the coffee development programme, the outlay for re-plantation in the 11th five year plan is Rs 100 crore (to cover 40,000 hectares). It is being made available for both Arabica and Robusta. But it is not available to co-operatives and corporate entities.

Variable subsidy for different sizes of holding is as follows "" about 40 per cent of unit cost for growers with up to two hectares land, 30 per cent for growers having between two hectares and 10 hectares, and 25 per cent for large growers holding more than 10 hectares.

Interest subsidy to small and large growers is Rs 90 crore. Interest subsidy not exceeding 5 per cent will be given to both small and large growers on working capital loans subject to interest subsidy limited to a ceiling of Rs 50,000 to an Arabica grower and Rs 40,000 to a Robusta grower.

For water augmentation, quality upgrade and pollution abatement, the allocation is Rs 40 crore. About 25 per cent of the unit cost is subject to fixation of variable ceiling limits for each sub-component in case of water augmentation and 20 per cent towards quality upgrade and pollution abatement.

"This is applicable to individual growers with up to 20 hectares of land. In the next five years, 4,600 units are being targeted for the water augmentation scheme, 4,100 units for quality upgrade and 1,875 for pollution abatement structures," said Ramesh.

A sum of Rs 45 crore for has been set aside for coffee development in non-traditional areas (NTA). The 10th plan coffee development in NTA had a limited focus with emphasis on technical assistance and capacity building and assistance for establishing community pulping units called Baby Pulpers.

For the development and expansion of coffee in North-East, a sum of Rs 20 crore has been earmarked. Expansion subsidy has been enhanced to Rs 20,000 a hectare. The target is to cover 850 hectares. Subsidy for consolidation remains at Rs 15,000 a hectare and the target is 1,000 hectares.

As part of the coffee development programme, special emphasis is given on capacity building and formation of self help groups (SHGs) for all stakeholders with an assistance of Rs 10 crore. As for welfare support to labourers and tiny growers, Rs 5 crore is being set aside.

Ramesh said, "The financial support to 250 farmers collectives will be extended to improve productivity, quality and warehousing support for traceability and differentiation through community approach."