Enterprises have called for a more broad-based financial support for the neera sector while welcoming a package announced by the State government for the debt-ridden farmer producer companies launched around 2014 with the promise of jobs and substantial earnings for the firms.
Neera, the unfermented sap from coconut flowers, has been touted as capable of revolutionising the market for natural health drinks. The Coconut Development Board had taken the initiative in setting up farmer producer companies with a view to tapping the market and increasing farmer income.
The State government has now announced that it will initially support five coconut producer companies that availed themselves of loans from the Kerala State Financial Corporation for setting up the neera-tapping and processing units. These companies are at Kadathanadu, Perambra, Malappuram, Tirur, and Palakkad.
While the government has promised to write off the penal interest on the loans secured by these companies and to extend the time period for the repayment of loans, there is a feeling that more companies should be brought under the government umbrella.
29 companies
E. Shasheendran, chairman of the Badagara Coconut Farmer Producer Company, says the package announced by the government would not be enough to save the companies. There are 29 companies that set up neera-tapping and processing operations with the State government promise of support in different ways. They have run up a bill of around ₹50 crore in loans, including collection through public participation, he says.
Shahjahan Kanjiravilayil, chairman of the Kaippuzha farmer producer company, says the government step is a sign that it is taking note of the distress of the neera sector but more has to be done for the whole spectrum of companies. The present package, he says, is being offered to companies that are not currently engaged in the production and sale of neera. Mr. Sasheendran says that with most of the companies utilising their loan money to set up the processing units, they do not have sufficient funds for the day-to-day operations.
