The Hindu : Karnataka News : Effective implementation of package sought

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Wednesday, Jan 23, 2008
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Karnataka

Karnataka

Effective implementation of package sought

Staff Correspondent

It covers 36 districts in the country

Federation alleges that funds released under the Vidarbha package were diverted
Representation presented to Rameshwar Thakur

HASSAN: Convenor, Joint Action Committee, Karnataka Growers Federation, B.A. Jagannath, has, in a representation to Governor Rameswar Thakur, appealed for the proper implementation of the Prime Minister’s relief package for coffee growers. A copy of the representation was released to the press in Hassan on Tuesday.

Mr. Jagannath said following suicide by farmers in the country, Prime Minister Manmohan Singh announced a relief package covering 36 districts in the country. This is popularly known as the Vidharba package. It was to prevent farmers from committing suicide besides rehabilitating their families. In Karnataka, Hassan, Belgaum, Chitradurga, Shimoga, Chikmagalur and Madikeri districts were covered. He alleged that funds were deviated for other works by the previous Government.

Mr. Jagannath said coffee farmers had suffered losses between 1999 and 2005 due to a 100-year low prices and severe drought conditions. Added to this, there was pest and disease to plants. In this background, the Reserve Bank of India decided to capitalise all pending interest component into principal amount and asked banks to give fresh loans by re-phasing previous loans (special coffee term loan).

This helped bankers to regularise default accounts rather than helping coffee farmers. Mr. Jagannath appealed to the Governor to announce a complete loan waiver up to 10 hectares of coffee holding as it would be more appropriate to help 98 per cent of small coffee farmers. Now growers are incurring heavy loss due to the scarcity of workforce and increase in the cost of production.

Mr. Jagannath said the State accounts for 70 per cent of coffee production (of the country) and also for Rs. 2,000 crore of foreign exchange from coffee. Pending interests and accumulated interests may amount to Rs. 180 crore to Rs. 200 crore.

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