BANGALORE: The Union Minister of State for Commerce and Industry, Jairam Ramesh, on Saturday announced a slew of relief measures for coffee growers. They are: an annual rainfall insurance with a 50 per cent subsidy to small growers to pay premium and waiving of interest to the tune of Rs. 168 crore on the overdue loans of all growers and restructuring the principal amount.

Speaking to reporters, he said the insurance would be applicable to growers in Tamil Nadu and Kerala also. Accompanied by the Coffee Board Chairman, G. V. K. Rau, and the Agriculture Insurance Company of India (AIC) Chief Manager, K. N. Rao, the minister said rainfall insurance was provided under three phases, namely, blossom showers, backing showers and monsoon rains. Blossom showers is received between March 1 and April 15 for Robusta and between March 1 and April 30 for Arabica for the bud to flower. The insurance payment commences if there is any shortage in the normal requirement of 25 mm rainfall in seven consecutive days and it is full payout if it is below 5 mm.

Backing showers is received after the 18th day from the commencement of the blossom showers till the 35th day. The normal requirement is 12 mm in two consecutive days. The payment commences if it is below 12 mm during the period and full payment is given if the rainfall is below 5 mm. Monsoon rains is received between July 1 and August 31. The rainfall above 25 mm for any seven consecutive days is likely to affect the yield and the payment commences if it is more. In Karnataka, all the 23 coffee zones are covered. There are 11 and nine zones in Kerala and Tamil Nadu, respectively.

The grower could choose any or all options and premium is worked out separately. The sum assured (maximum limit of insurance) is Rs. 20,000 per hectare for Robusta and Rs. 30,000 per hectare for Arabica.

The sum assured for Robusta and Arabica under three phases is: Rs. 6,000 and Rs. 6,000 and Rs. 8,000 and Rs. 10,000, Rs. 16,000 and Rs. 4,000, respectively. It is automated and the grower is not required to submit a claim form. Claims are processed and settled within four weeks from the end of the insurance period.

The insurance could be purchased till February 28 for the first two categories and till June 30 for monsoon showers. Insurance representative of the AIC at the junior/senior liaison officers of the Board in every zone would collect the proposal form and premium during the relevant seasons. The Board and the AIC would launch an aggressive marketing scheme in the next few weeks.

Subsidy, interest waiver

Mr. Ramesh announced a premium subsidy of 50 per cent for small growers, who owned ten hectares and subject to a ceiling of Rs. 2,000 for Robusta and Rs. 2,500 for Arabica per hectare. The grower should pay the balance premium.

The Union Government has approved a sum of Rs. 22.87 crore covering 1.16 lakh hectares for the purpose. If necessary, the Centre would release more funds.

The grower buying insurance needs to pay premium net of subsidy and the Board will reimburse it to the LIC.

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