Coffee replantation awaits finance ministry nod

The Coffee Board is awaiting the union finance ministry's approval for a Rs 1,389.63-crore replantation scheme for coffee growers in southern states.

The scheme, which has been initiated to replace ageing plants in major coffee-growing regions in south India, will help particularly the small and marginal growers.

It was prepared by SBI Caps and received the union commerce ministry's approval last month. It will also require the clearance of the Planning Commission.

The Coffee Board plans to take up coffee replantation in 80,000 hectares over the period of two five-year plans. About 60,000 hectares of this is in Karnataka and the rest in Tamil Nadu and Kerala.

Of the total Rs 1,389.63 crore, Rs 539.04 crore is to be disbursed as subsidy, Rs 510.99 crore as term loans and Rs 339.60 crore as margin money which is to be raised by the growers.

Growers have been categorised into four groups. Those holding less than two hectares will receive Rs 300.04 crore (60 pc as subsidy, 20 pc as loan and 20 pc margin which the growers will have to raise).

Those having between two and four hectares will get Rs 156.96 crore (50 pc as subsidy, 30 pc loan and 20 pc margin).

Growers having between four and ten hectares will get Rs 315.85 crore (40 pc as subsidy, 40 pc as loan and 20 pc as margin).

The rest Rs 616.77 crore will be disbursed to growers having more than ten hectares (25 pc subsidy, 45 pc loan and 30 pc margin money).