Bangalore: Coffee Industry Needs Investment of Rs 1,000 Cr in 12th Plan: KPA


From Our Special Correspondent
Daijiworld Media Network - Bangalore
 
Bangalore, Sep 26:
A massive investment of at least Rs 1,000 crore will be required for adopting green technologies, mechanisation, research and development in the coffee industry during the 12th five year plan (2012-17), said Karnataka Planters’ Association Chairman Marvin Rodrigues on Wednesday.

Pointing out that the Coffee industry, which is the mainstay of three districts of Chikmagalur, Kodagu and Hassan, the Chikmagalur-based KPA’s Chairman said the coffee industry which required heavy investment and uncertain market conditions at home and abroad due to multiple factors was beset by shortage of labour besides the high cost of labour besides poor infrastructure facilities in Karnataka.

Shortage of labour, decline in production and productivity, rise in cost of fertilizers and inputs, unserviceable debts, scarcity of water and power resources and stringent and expensive pollution control measures were among the major constraints faced by the coffee industry, Rodrigues said.

The KPA Chairman said the industry would invest Rs 1000 crore in the next five years and has decided to seek Rs 300 crore subsidy package from the Centre for mechanisation and other activities.
 

Memorandum to Scindia
 
A detailed proposal of the coffee industry would be submitted to Jyotiraditya M Scindia, Union Minister of State for Commerce and Industry, when he will be inaugurating the 54th annual conference of KPA here on Thursday Karnataka contributes 70 per cent of India’s coffee. During the 11th plan period, the Planning Commission had allocated Rs 50 crore for mechanisation in the fifth year of the plan, while only Rs 22 crore were released to the beneficiaries.

The cost of labour in the coffee plantation sector has increased manifold in the recent years. Presently, the plantations pay Rs 190 per day, an increase of seven times over that of Rs 27 per day paid in 1994.

There was an acute shortage of labour and the plantations manage to bring temporary workers from the northern districts of Karnataka during the plucking season, he said.

The Coffee Board estimated the output at 3.25 lakh tonnes in 2012-13, which includes 1.04 lakh tonnes of arabica, and 2.21 lakh tonnes of robusta coffee.
 

Poor Condition of Roads Criticised
 
Rodrigues criticized the State Government for bad state and district roads in the plantation areas of Chikmagalur, Kodagu and Hassan districts and demanded that the authorities should take up road repair works immediately.

The government has to do something for developing infrastructure such as roads and power situation in plantation districts of the State, he said pointing out that the condition of the State and districts roads in three districts are in poor condition.

Even free movement of passengers is hindered due to bad condition of roads, he said.

Chikmagalur, Kodagu and Hassan districts were major producers of plantation crops such as coffee, pepper, cardamom and rubber in the State.

Major roads to the Mangalore Port were all in a bad condition hampering the movement of goods as well increasing the cost of travel, he said and demanded that the State Government must take immediate steps to develop infrastructure to enable plantations to be cost effective in the global market.

Noting that potholes in the Shiradi ghat section have been filled during the monsoon, he demanded the government to seek funding from the Centre under the Hill Area Development scheme to develop infrastructure in plantation districts.

  

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Comment on this article

  • Marvin Rodrigues, Mangalore/Bangalore

    Wed, Oct 03 2012

    Mr. Fernandes, you can purchase a coffee estate. There is no restriction for Indian citizens..

    DisAgree Agree Reply Report Abuse

  • Louis Fernandes, Belthangady / Al Jubail, Saudi Arabia

    Sun, Sep 30 2012

    I am interested to own a coffee estate in Chickmagalur but i heared that NRI's can't buy agricultural property in India. Please advise. thanks
    louis_fernandes2001@hotmail.com

    DisAgree Agree Reply Report Abuse

  • Joe Britto, Nakre/Bangalore

    Thu, Sep 27 2012

    The Coffee Industry indeed is one of the oldest Sectors which earns continuous foreign exchange for the State/ Country.
    Mr Marvin Rodrigues the dynamic and young KPA Chairman has indeed highlighted the major issues and problems that this important Sector is facing.
    There are many other serious issues like
    (1) Drastic changes in the climate and uncertain Rains
    (2) outbreak of Pests & Diseases ( Stem borer, Berry Borer and diseases like Rust and other infestations.
    (3) Increased costs of inputs particular fertilisers and chemicals
    (4) High cost of changing to Organic Coffee and sustainable Coffee Farming Techniques
    (5)High cost of even the poor quality of labour
    (6) The attacks on the Coffee Plantations by wild animals particular Elephant attacks and monkey menace
    (7) The uncertain life for the Planters with the serious Naxal menace in many prosperous areas.
    The list is endless, but the most worrying issue is that 99% of the Private Plantations are certain that their sons/grandsons do not wish to come back to the Coffee Plantations and prefer other lucrative sectors like IT and other Cosy sectors in Cities.
    Upto the 1980’s and even 1990’s a Coffee Planter was respected and even envied by many, today the prospects of marriage are quite dim for the sons of Coffee Planters who are looking after the Coffee Estates.

    The Central Govt. investment of Rs 1000 Crs requested by the KPA Chairman for the 12th plan is the least and in reality the need would be in the region of atleast Rs 2000 crs in order to do full justice to all the issues to this important sector which may very well be on its last legs.

    DisAgree [2] Agree [8] Reply Report Abuse

  • Joe Britto, Nakre/Bangalore

    Wed, Sep 26 2012

    The Coffee Industry indeed is one of the oldest Sectors which earns continuous foreign exchange for the State/ Country.
    Mr. Marvin Rodrigues the dynamic and young KPA Chairman has indeed highlighted the major issues and problems that this important Sector is facing.
    There are many other serious issues like
    (1) Drastic changes in the climate and uncertain Rains

    (2) outbreak of Pests & Diseases
    like Stem borer, Berry Borer and diseases like Rust and other serious infestations.
    (3) Increased costs of inputs particular fertilisers and chemicals .
    (4) High cost of changing to Organic Coffee and sustainable Coffee Farming Techniques & Fairtrade .
    (5)High cost of even the poor quality of labour
    (6) The attacks on the Coffee Plantations by wild animals particular Elephant attacks and Monkey menace
    (7) The uncertain life for the Planters with the serious Naxal menace in many prosperous areas.

    The list is endless, but the most worrying issue is that 99% of the Private Planters who are certain that their sons/grandsons do not wish to come back to the Coffee Plantations and prefer other lucrative sectors like IT and other Cosy sectors in Cities.

    The Central Govt. investment of Rs 1000 Crs requested by the KPA Chairman for the 12th plan (2012-2017) is the least and in reality the need would be in the region of atleast Rs 2000 crs in order to do full justice to all the issues to this important sector which may very well be on its last legs.

    DisAgree Agree Reply Report Abuse


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Title: Bangalore: Coffee Industry Needs Investment of Rs 1,000 Cr in 12th Plan: KPA



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