Coffee growers in Kodagu, Chikkamagaluru and Hassan districts are, however, apprehensive.Many want to know the measures taken to protect small and marginal farmers, who constitute 90% of growers in Karnataka.
Bengaluru :
When coffee growers in Karnataka were going through a rough patch due to labour shortage, elephant menace and unprecedented fall in prices, the Centre in November last year allowed 100 % FDI in five plantation crops: Coffee, rubber, cardamom, palm oil and olive oil. The decision, meant to rejuvenate the sector, is expected to have a huge impact on Karnataka, which accounts for 70% of India’s coffee production.
As of now, 100% FDI is allowed only in tea plantation. “Relaxed FDI norms will help coffee and cardamom growers since it is expected to bring in big overseas investors and retail giants besides enhanced technology utilization, automation, research, management and production of value-added products. Permitting foreign investment will also boost India’s coffee exports offering better prices for growers here, ” says Coffee Board chairperson Leena Nair.
Coffee growers in Kodagu, Chikkamagaluru and Hassan districts are, however, apprehensive. Many want to know the measures taken to protect small and marginal farmers, who constitute 90% of growers in Karnataka. Some coffee growers’ associations are holding talks to oppose the move as they fear small growers would be forced to sell their estates to foreign investors. Their entry may prove detrimental for small coffee planters, who may not be able to match the wages and technology of foreign players.
“The Centre should have held consultations and allayed fears before allowing FDI. But they have done in it in a hush-hush manner and kept us in the dark, making us believe that there is a hidden agenda,” says NK Pradeep, a Coffee Board member from Chikkamagaluru. Former Coffee Board vice-chairman Sannuvanda Kaverappa says a parliamentary committee that visited Chikkamagaluru last year to interact with coffee growers left in a huff. Nair allays all fears of growers saying: “The small-grower segment need not worry as enough safeguards have been provided and the Centre and the state government can always reject any FDI proposal in their segment.”
A Coffee Board executive says FDI will benefit coffee growers. The measure is expected to make the coffee industry vibrant like the tea sector, which opened gates for foreign investments in 2002. “Rather than starting a new venture, foreign investors may partner with existing plantations or trading companies. FDI will help boost developmental activities such as replanting, rejuvenation and R&D that need huge funding. It may also help in upgradation, modernization and automation of coffee-processing, curing, marketing,” he adds.
source: http//:www.retail.economictimes.indiatimes.com / ETRetail.com / Home> Industry / February 12th, 2016
