The Hindu Business Line : Coffee Board Chairman, growers thrash out issues

Growers' concerns
Planting material given to them did not yield promised results
Inefficiency of the R&D wing of the Board
Coffee Board has not pursued negotiations with the banks for the Special Coffee Term Loan

Coffee growers could hardly remember another commodity session held in tandem with the UPASI Annual Conference where they had to face a tough interaction with the Board Chairman as they did last week. The Chairman, Mr G.V. Krishna Rau, minced no words to tell the growers what they failed to do and ask them what they intended to do. On their part, the growers also opened their minds.

Growers criticised

Contending that he was not making a presentation but only sharing his views on the different issues, Mr Rau spoke at length which, though inconvenienced some of the planters, did try to bring in new ideas. Observing that there was setback in the production achievements vis-a-vis targets in the Tenth Plan now coming to a close, he charged the planters of not taking care of the fields adequately.

"We are issuing the advisories in time, but nothing is being done.

There are only complaints of white stem borer infestation. Spraying has not been done. I have this information not from the officers of the Board, but the growers themselves. They are contending that they don't have money to spend on plant protection measures. I thought that the growers are wise, now it seems they are otherwise - to save Rs 2,000 per hectare on plant protection and prepared to lose the very crop, not only now, but the next crop as well," he quipped.

11th plan production

Nevertheless, the production would be good in the 11th Plan because more areas have been put into cultivation and productivity is also increasing in some pockets. The production which was around 3 lakh tonnes at the end of the Ninth Plan slipped to 2.75 lakh tonnes in the last three years, but could rise to 3.1 to 3.2 lakh tonnes by the end of the 11th Plan. But, the problem of low productivity continues. "I cannot imagine how some growers can report as low a productivity as 300 kgs per hectare. There are many plantations which have high productivity, but those with such low yields cannot sustain at all. They should look for other crops, not coffee and hence improve the overall productivity of their fields," Mr Rau said.

Low productivity led to low returns, he said, and added that there was no point in the growers complaining about the prices.

"I expect the growers to be comfortable with the current prices although I do hear complaints. If you are not comfortable with the prices, you are not doing the activities in a viable manner. And, if you can't do this, you have no reason to exist in business," he argued.

In the 11th Plan, the focus has to be on marketing value-added products. "The future lies in this. I want the industry to come out specifically as to what the players are willing to do for creating value-addition. What are you going to do and then tell us what you want us to do. We need aggressive marketing," he said.

Growers' complaints

Growers, however, confronted him with the observation that the poor productivity in the plantations was because of the inefficiency of the R&D wing of the Board. They said if the Board was not sure of its capability, it could outsource the R&D services, to which the Chairman said: "I am prepared to do this. I am willing to ask for around Rs 1 crore for you to conduct R&D from your own sources without lending my staff. I know the Board and the Coffee Research wing are the punching bags for the planters, but remember, we are doing some research, the results of which will flow in due course."

Growers also complained that they felt let down by the Board as the planting material given to them did not yield the promised results. "We did exactly what you wanted us to do. We planted the materials the Board gave us. But, now when we are in a crisis with low productivity and returns, we are only being blamed," a grower complained.

The Chairman said: "The planting strain we gave, Cauvery, was, indeed, high yielding. But, the growers did indiscriminate propagation among themselves. Instead of buying the planting material from us direct, they started sourcing them among themselves, diluting the success of an established scheme. Now, how could you blame us?" The planter seemed to agree with the Chairman on this.

Banks' support

On the banks refusing to support the Special Coffee Term Loan, the growers insisted that the Board had to pursue the negotiations. "A couple of rounds of discussions does not mean the end of the problem," a grower said. Disagreeing, the Chairman said that already, it has been seen that there is no meeting point with the bankers.

"At this rate, it would make no sense in continuing with this negotiation. The banks have expressed their displeasure to be with the scheme. We are also taking up the issue with the Government for rescheduling the loan and reducing the interest component. But, right now, the Government is coming out with a scheme to help the growers reeling under distress. Three major coffee growing districts have been included under this scheme. So, it is immaterial as to how the growers get their benefit as long as the relief comes to them," Mr Rau said.

More Stories on : Coffee | Industry Associations

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Nabard sanctions Rs 343 cr to KSCB

Record wheat discharge at Vizag

CWC inks deal with RT group

How farmers can reap benefits from SEZs

`Can't have economy in boom and agriculture in gloom'

`Futures pushing down rubber prices'

Spot rubber improves

Maharashtra cane output may top 600 lakh tonnes

India 2nd largest global cotton producer

Coffee Board Chairman, growers thrash out issues

Pepper futures market down

Lower output

Trinamul Cong to stay off meet