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“We are working on a relief package for small and marginal coffee growers. We will unveil the package soon. We are in touch with all the coffee growing states and collecting inputs for the proposed package,” Sharma said.
However, the minister did not elaborate on the proposed relief package for coffee growers. It is learnt that the Commerce Ministry is mooting a nearly Rs 1130 crore relief package for indebted coffee growers. The package will comprise of an outright bank loan waiver of about Rs 400 crore and extending crop insurance cover of Rs 730 crore, sources in the Commerce Ministry said.
Industry sources say indebtedness of small and marginal coffee farmers are relatively high. They are facing several problems like crop loss. The coffee production has declined as the crop has been affected by un-seasonal rains. It is learnt that coffee growers’ loans in the books of banks till March 2009 would be eligible for waiver.
The main coffee growing states in the country are Karnataka, Kerala and Tamil Nadu.