Coffee scheme awaits govt body nod

The replantation scheme for coffee growers is awaiting the Cabinet Committee on Economic Affairs (CCEA) approval.

The interest subsidy on working capital for growers, irrespective of the land holding, however, has been fixed at 5 per cent.

Speaking on 'Coffee "" Indian Situation and Global Scenario' at the 49th annual conference of the Karnataka Planters' Association here on Wednesday, G V Krishna Rau, chairman, Coffee Board said, "The scheme has been cleared by the Finance Ministry and is awaiting the CCEA nod."

The Coffee Board had submitted to the finance ministry a replantation scheme involving Rs 1,389.63 crore for coffee growers in southern states. The scheme is to help small and marginal growers the most. The scheme is being initiated to tackle production challenges.

The board plans to take up coffee replantation on 80,000 hectares over two Five Year Plan periods. The entire replantation is expected to be completed in 13 years. In Karnataka, about 60,000 hectares will be taken up under the scheme. The remaining area is spread over Tamil Nadu and Kerala.

The replantation scheme has been prepared by SBI Caps. Of the total package, Rs 539 crore is to be disbursed as subsidy, Rs 510.99 crore as term loans and Rs 339.60 as margin money (to be raised by growers on their own).

"Though the current prices are comfortable and may remain so at least in the medium term, the need of the hour is to make appropriate investments in coffee estates in a sustained manner to stablise and improve productivity levels," Rau said.