Bangalore: The Karnataka Planters Association has urged the Union Commerce Ministry and the Coffee Board to come up with a rescue package for Arabica growers that includes waiver of not only interest but also a significant portion of the principal coming under the Special Coffee Term Loan (SCTL).

Association chairman S.P. Muthuraman told presspersons here on Monday that Arabica growers had lost yielding coffee plants infested by the white borer. Poor rainfall and drought during the past three years had also led to a fall in production.

Cost of production was higher for the Arabica variety than Robusta. Therefore, growers of Arabica coffee had no surplus to meet SCTL and other loan obligations. They had to replant areas affected by the white borer infestation and the new plants would have to be nurtured without any returns for the next five to seven years, he said.

To a question, an office-bearer of the association said the overall liability of coffee growers was around Rs. 850 crore.

He said both the Coffee Board and the Tea Board did not have the full complement of members. While the 32-member Tea Board had 12 vacancies, the Coffee Board had five vacancies meant for small growers. This was hampering the functioning of the boards. The Coffee Board had not convened meetings to discuss the problems of growers, he said and urged the Government to fill the vacancies.

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