'Rescue Package' demanded for Arabica growers

Bangalore, Nov 6 (UNI) Karnataka Planters Association (KPA) today urged the Union Commerce Ministry to evolve a 'Rescue Package' for Arabica growers who are facing severe crisis including rampant infestation of white stem borer disease in their plantations.

Speaking to newsmen here, KPA Chairman S P Muthuraman said that Arabica growers had suffered serious loss due to low yeild following the disease. They were also under stress due to indifferent rainfall and drought conditions in the last three years which had reduced the production capacity of the plants. Besides, the cost of production of Arabica was naturally higher than Robusta and the Arabica growers had to find resources to replant the destroyed areas and maintain them without any returs for upto seven years, he explained.

Replying to queries, he urged that the package should include waiver of not only interest but also a significant portion of the principal amount of the Arabica growers substantially under the Special Coffee Term Loan scheme. As many as 30,000 plantation growers including 400 from the KPA were Arabica growers in the State.

Taking strong exception to the pruning of subsidy by the government from 40 per cent to 25 per cent to the tea growers under the Special Purpose Tea Fund (SPTF), he said that it would affect the proposed massive replantation and rejuvenation programme as was thought about in the original intent of the scheme. The SPTF was yet to take off in Karnataka as there was a stipulation that teas worth 200 per crent or the loan value had to be sold at the auctions as a security measure. This stipulation was unviable for the state as it had no auction centre in the first place. There was a need to remove the stipulation with regard to tea growers in the state, he felt.

MORE UNI SR MSP RKN1430