From Our Special Correspondent
Daijiworld Media Network - Bangalore
 
Bangalore, Sep 27: Area under coffee cultivation is proposed to expanded by the Coffee Board by offering subsidies to coffee planters and estates run by corporates as well cooperatives in traditional and non-traditional areas in various states.

This was announced by Coffee Board Secretary M Chandrashekar while addressing the annual conference of the Karnataka Planters Association (KPA), Chikmagalur, held in Bangalore on Thursday.

Chandrashekar said the Coffee Board has submitted a comprehensive proposal for granting subsidy at various levels to the Centre for implementation during the 12th five year plan (2012-17) period.

Under the scheme proposed by the Coffee Board, subsidy will be provided at 40 per cent to planters owning less than 10 hectares, 30 per for planters/corporates and cooperatives owning estates more than 10 hectares and 50 per cent subsidy for Scheduled Caste and Scheduled Tribe families owning less than 10 hectares during the 12th plan period.

The Centre is considering a proposal to fix cost and enhance assistance for improving the replantation scheme, Chandrashekar said.
 
“The Union Government is considering the proposal sent by the Coffee Board for fixing new cost and increasing the levels of assistance along with making cooperatives and corporates eligible under the scheme for improving the replantation scheme,” he said.

One of the major proposals of the 12th five year plan (2012-2017) is enhancement of unit cost and scale of subsidy for replanting and to cover all category of holdings including cooperatives and corporates, added.

This proposal is a major demand of the coffee industry, KPA Chairman Marvin Rodrigues had said yesterday.
 
“Replanting is the important investment for growers which forms the basis for improving the production and productivity of the estates as it ensures in replacing aged and low-yielding coffee plants,” Rodrigues had said.

Karnataka accounts for some 70 per cent of the country’s coffee production. Chandrashekar said the government was also considering a proposal to form a separate scheme for transfer of technology and capacity building to strengthen the transfer of R&D findings to the field.