The Hindu Business Line : Centre examining demand to extend special coffee loan scheme

THE Centre is examining the planters associations' demand to extend the special coffee term loan scheme, as a section of the growers has not availed itself of the scheme unveiled in June to bail out the growers.

"I will take up the matter for extending the period with the Union Minister for Commerce and Industry, Mr Kamal Nath," said Mr E.V.K.S. Elangovan, Union Minister of State for Commerce and Industry, addressing the 47th Annual Conference of Karnataka Planters Association (KPA) here on Wednesday.

Over 14,000 growers are yet to avail themselves of the scheme and they could be covered once the Cabinet gives its clearance, he said.

Mr Elangovan assured the growers that the confusion over the implementation of the special relief package would be sorted out.

The bailout package provides for waiver of 2/3rd interest on the loan scheme for coffee growers during the three-year moratorium period by dividing this burden equally among banks and the Union Government. The growers also have to chip in with the remaining 1/3rd interest to operationalise the scheme.

Mr Al. Rm. Nagappan, Chairman, KPA, said while a good majority of the coffee growers had availed themselves of the benefits of the package by depositing the 1/3rd portion of the interest liability with the banks, a section of the growers (of which, more than 85 per cent are small growers) was left out mainly due to lack of time to raise the money required for their contribution.

UPASI-KPA had sought more time from the Government to these growers to avail the benefit of waiver of 2/3rd interest on the special coffee term loan scheme.

Mr Abhijit Sengupta, Additional Secretary, Ministry of Commerce, said the Government had "started the process of examining the proposal to extend the period to accommodate those who were left out."

Mr Elangovan said the Government would also extend a 5 per cent and 3 per cent interest subsidy to small and large growers respectively on their working capital loans during the remaining period of the Tenth Plan.

The Government has also waived off old development loans taken by small and tiny growers and interest thereon worth Rs 64.50 crore.

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