KARNATAKA

Centre's relief package for coffee growers welcomed

Staff Correspondent

MADIKERI: The chairman of the Codagu Planters Association, K.M. Nanaiah, on Saturday, welcomed the relief package for coffee growers announced by the Union Government.

In a press statement, Mr. Nanaiah said that the reduction of interest from 11 per cent to nine per cent over coffee crop loans and writing off the coffee development loan arrears along with interest, extended to those who had holdings below 10 hectares, will help growers tide over their problems.

The decision to equally share the interest burden on the Special Coffee Term Loans (SCTL) during the three-year moratorium period (already in force) by banks, the Government, and the growers who had availed loans, is welcomed, he said.

Subsidy

Further, the Government had also proposed to continue the interest subsidy scheme on the working capital loans for small growers with holding below 10 hectares at the rate of five per cent and to the large growers at the rate of three per cent for the remaining years of the 10th Plan.

However, this subsidy will be reduced by one per cent for a period of three years in the case of growers who received the benefit of reduced interest burden on the SCTL during the moratorium period.

The association will thank the Union Commerce and Finance Ministries for having taken cognisance of the problems of the growers and the industry as a whole, Mr. Nanaiah said.

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