The Karnataka Growers Federation has sought financial and economic package from the government to overcome the crisis plaguing the plantation sector owing to the COVID-19 lockdown.
In a press release, the association said the sector has faced back-to-back crisis in three years — floods and landslips in 2018 and 2019, and the fallout of COVID-19 in 2020. Despite the crisis plaguing the sector, the Centre failed to offer them anything under the ₹20 lakh crore package which was announced to stimulate the economy, it added.
Cautioning the government that the plantation sector may come to a grinding halt in the absence of a package, federation president U.M. Tirthamallesh and general secretary B. Muralidhar said multiple representations were made to the Union government and the Ministry of Finance highlighting the major problems plaguing the plantation sector. Yet, their demands have not been considered, it added.
According to the federation, the crop loss owing to floods and landslips in 2018 and 2019 ranged from 35% to 70% and it came in the backdrop of a steep increase in the cultivation cost, resulting in enormous loss to growers.
The arabica and robusta varieties of coffee were being sold at a considerable loss from the last five years, according to the federation, which said that COVID-19 has had a devastating impact on the sector.
It highlighted the labour issue and said that migrant workers had returned to their respective States and districts as a result of which all plantation works had come to a halt and it would affect production.
Financial institutions, including banks, were reluctant to sanction or renew loans to the planters as many were in financial crisis and unable to clear the outstanding dues, according to the federation. It said exports took a hit owing to COVID-19 as Italy, which is one of the major markets for coffee, is badly affected by the pandemic.
The federation also urged the government to convert short-term loans into long-term loans, extend a moratorium on repayment of loans for three years, and extend the loan repayment tenure at 3% interest rate to 10 years to revive the plantation sector.
