The Karnataka government has earmarked a sum of Rs 20 crore to facilitate the implementation of a debt relief package for coffee growers (CDRP), and will work closely with the Centre and the Coffee Board of India.

At the inaugural session of the India International Coffee Festival’s 2014 essay, the southern state’s chief minister Siddaramaiah said that the Centre implemented CDRP 2010 through the coffee board to help the indebted coffee growers.

“As a part of the coffee debt relief package, the state government extended financial assistance to the coffee growers with regard to the loans that were offered by the cooperative banks,” he stated.

“Further, on the commerce ministry’s request, the state government waived off the interest and penalty dues payable by the coffee board, which amounted to Rs 230.47 crore,” Siddaramaiah added.

“India is an important player in the global coffee market. Presently, it is the sixth-largest producer and the fifth-largest exporter of coffee in the world. Karnataka occupies a prime position in India’s coffee production. The area under coffee cultivation is 55%, and it contributes to 72% of the national production,” he informed.

Siddaramaiah said the state government’s focus was on ensuring the well-being of the coffee growers. “There is a serious impact of the climate change on coffee cultivation and addressing this issue is a daunting task,” he stated.

“Going by the change in the rainfall pattern in the recent years, the issue is going to assume a still greater importance in the coming years. During the current period itself, the state has seen an unpredictable and erratic monsoon,” the chief minister added.

“At the coffee blossom stage, the crop production was exected to be high, but it was low owing to the hot and harsh climate, which lasted two months and was followed by incessant rainfall,” he said.

“In order to mitigate the crisis, the government’s rainfall insurance scheme for coffee growers a few years ago has seen us bear 25% of the premium on behalf of the small growers,” Siddaramaiah added.

“The support from our end has been over and above the Centre’s share of 50%. The growers must realise the risk of climate change and subscribe to the protection against the vagaries of rainfall,” he said.

“There is also the issue of pollution control. Coffee pulping activity has been categorised as red by Karnataka’s norms and orange category by the Central Pollution Control Board. All efforts have made to address these issues,” the chief minister added.

source: http://www.fnbnews.com / FnBnews.com / Home> Wide View> Top News / by Nandita Vijay, Bengaluru / Thursday – January 30th, 2014