Manyepanda Madaiah Chengappa recently took over as the Chairman of Karnataka Planters Association (KPA). Karnataka accounts for more than 70% of the coffee production in India.
According to United Planters Association of Southern India (Upasi), Karnataka’s post-monsoon estimated coffee production for 2015-16 was 253,340 tonnes, with the all-India number standing at 350,000 tonnes. KPA has about 700 members as of date.
In an interview with Furquan Moharkan of DH, Chengappa says that his aim as the chairman is to make domestic demand for the cup of coffee transform from an elitist drink to a common man’s drink.
What are the challenges that coffee plantation sector faces today?
Climate change has increased, apart from pests and diseases impacting the coffee crop productivity. The Arabica coffee crop yield has reduced from 1,200 kgs, to 600 kgs per hectare, while Robusta coffee has decreased from 2,000 kgs, to 1,400 kgs per hectare, over the last decade. For instance, this year, Kodagu has 300 mm less rainfall over the previous year, and Chikkamagaluru has also suffered a similar fate, which affects the standing coffee crop and development of new shoots in coffee plants for the coming season.
Labour wage constitutes over 60% of the total cost of coffee cultivation. The annual wage increase was below 6% till 2007-08. From 2008-09, the increase was very steep. Against 2007-08’s wage of Rs 79 per day, the current wage is at Rs 263 — an increase of 232% or an annual average increase of 15%. This could be the highest percentage increase for any industry in Karnataka. Also the statutory and welfare costs for the labour, which are over and above the wages and benefits, works out to an additional 50% of the wages. This is an additional financial burden for both corporate and proprietary planters.
However, the sale price for coffee at the farm gate hovers around Rs 2,800 to Rs 3,500 for a 50-kg bag, while the labour and fertiliser costs have spiralled disproportionately. The need to invest more funds for R&D to develop better quality coffee plants that are high-yielding and pest-resistant is another challenge.
What are your priorities after taking over as Chairman of the KPA?
Primarily, my major objective is to make domestic demand for the cup of coffee transform from an elitist drink to a common man’s drink. I would seek the Coffee Board’s assistance to establish coffee kiosks at public places like government offices, bus and railway stations, airports, shopping malls and educational institutions. This would make the demand for coffee explode in the country. Towards this objective, it would be necessary to jointly pursue vegetative clonal and tissue culture propagation of coffee, with United Planters Association of South India (Upasi) and Central Coffee Research Institute, Balehonnur, Karnataka. Also, to push for the import of pest and disease-resistant high-yielding coffee plant material. Identify biological viable and effective methods to treat effluents.
Also, request the state government and its Department of Agriculture to allocate Rs 1.9 crore in the state budget to fund the Upasi-KPA coffee research project. To establish soil and leaf analysis laboratories at Chettalli, Kodagu district and Chikkamagaluru district for the convenience of small and large growers.
A lady planters sub-committee has been constituted to promote community outreach programmes and showcase their achievements in cultivation of coffee, plantation nurseries, local marketing initiatives at national and international levels, home stays and plantation cafes for income augmentation.
What is the impact of the GST regime on the coffee plantation sector?
GST does not affect the coffee grower directly, as being agriculturists, they come under zero tax brackets. GST is applicable only after curing at the roasting and powdering stage, when the value-addition takes place, and the coffee can be consumed as a cup of coffee. According to Rule 7B (1) of Income Tax Act — “Income derived from the sale of coffee grown and cured by the seller in India shall be computed as if it were income derived from business, and 25% of such income shall be deemed to be income liable for tax.” This I-T Rule needs to be amended to tax coffee only at the stage of roasting and powdering that would enable the grower to sell coffee, which is plantation-specific, directly to the local and global markets.
Do you think that the import of pepper from Sri Lanka could affect domestic trade?
Import of poor quality pepper is killing the Indian pepper market. A regulatory price mechanism is necessary, whereby the price of pepper imported should be about 5% lower than the Cochin pepper auction price of equal quality of the day. Also, quality parameters of the imported pepper should be strictly monitored by a suitable government agency.
Your comments on the degradation of forests and environment pollution that have a bearing on the plantations in Karnataka.
The National Forest Policy is under amendment and a high-powered committee has been instituted for the purpose. The KPA and Upasi have jointly made a representation to the Union Ministry of Environment and Forests. Also the elephant menace in Kodagu district has assumed dangerous proportions due lack of proper fodder and vegetation in the game sanctuaries. Plantation crops, fruit trees and human beings are being trampled upon and destroyed. Therefore, the translocation of elephants appears to be the only solution, as all other forms of deterrents and barriers have proved ineffective.
While tourism has phenomenally raised the socio-economic level of people in the plantation districts, it should not lead to environmental pollution. Therefore, it is necessary to promote eco-tourism in the plantation districts of the state. Also, aggressively ban all types of pollutants, plastics, discharge of sewage and chemical effluents into the rivers. People need to be aware of waste segregation, its recycling and proper disposal through the media platforms to promote eco-tourism.
source: http://www.deccanherald.com / Deccan Herald / Home> Supplements> Economy & Business / by Furquan Moharkan / DHNS – December 12th, 2016
