The Hindu : Karnataka News : Coffee planters want interest rebate

Online edition of India's National Newspaper
Friday, Nov 05, 2004

Karnataka

Karnataka

Coffee planters want interest rebate

By Our Special Correspondent

BANGALORE, NOV. 4. The Karnataka Planters' Association (KPA) has asked the Union Government to speed up finalisation of the "stabilisation package" for the coffee industry.

The KPA president, Shankare Gowda, said the "bail-out package" should have high on its agenda an interest rebate scheme to reduce the overwhelming debt burden of coffee planters. The outstanding debts of planters amounted to Rs. 1,300 crores with an interest component of about Rs. 200 crores. At the current level of prices at coffee auctions, it would be difficult for planters to service their debts, he said.

Prices, which had fallen by about 40 per cent between 2002 and 2003, were just beginning to recover, Mr. Shankare Gowda said.

The prevailing prices of Rs. 81.36 a kg for Plantation `A', Rs. 52 for Arabica Cherry `B' and Rs. 37.26 for Robusta Cherry `AB' were, in some cases, below the price levels of 2000. Three years of drought and white stem borer pest which destroyed crops in some areas had affected the plantations in the State.

The KPA was optimistic about the package to be announced by the Union Commerce Ministry and was happy about the response from the Union Minister for Commerce and Industry, Kamal Nath, to their representations.

The planters were against tea, coffee, cardamom, pepper and rubber being in the 12.5 per cent slab in the proposed value-added tax regime. They should come under the 4 per cent classification as they were agricultural produce, the KPA said.

With regard to State levies, it wanted the exemption from agricultural income tax extended to growers with holdings up to 150 acres.

Technical session

On Friday, the KPA and the UPASI have arranged a technical session to be addressed by experts. On Saturday, the 46th annual conference of the KPA will be held.

Printer friendly page
Send this article to Friends by E-Mail

Karnataka