Coffee planters demand risk mitigating tool on comexes

The Karnataka Planters' Association (KPA) has urged the Union commerce ministry to provide risk mitigating mechanism on commodities exchanges "" the National Commodity and Derivatives Exchange and the Multi-Commodity Exchange "" to coffee growers.

Speaking to reporters on Monday to announce the 49th two-day annual coffee conference to be held in Bangalore from October 30, KPA Chairman Jeffry Rebello said, "Currently, these exchanges do not have the necessary risk mitigating mechanism to coffee growers and are mainly confined to the trade. We are apprehensive that this may eventually be used as a speculative tool. Hence, we request the ministry to monitor the activities and see that these exchanges become more useful to the growers."

The KPA requested the ministry to extend personal accident insurance scheme to plantation owners and their permanent workers irrespective of the acreage as it would be in the interest of the workers and employers. Presently, the scheme is applicable to coffee planters and their workers, who hold up to 4 acres.

While coffee growers are striving to improve productivity and bring down costs, realisation is hit by factors beyond their control. The Miebach Study done by the Coffee Board clearly shows that logistics is very expensive in India compared to Brazil and Vietnam.

"These high costs, just like the rupee's appreciation hurts the coffee grower. It is indeed surprising that Mangalore, the nearest port to the coffee growing regions, handles far less coffee than Kochi or even Chennai," he said.

Labour scarcity and increasing labour costs are making plantations unsustainable.

"It is now necessary that the Central Coffee Research Institute (CCRI) along with institutes like the IIT's or the Indian Institute Science (IISc), develop small hand tools and motorised equipment like tillers, earth augurs that may be used in plantations," he added.