The Karnataka Planters’ Association, which has painted a grim picture of coffee production scenario due to continuous rainfall in coffee growing areas, on Monday urged the Centre to reschedule the term of loans availed by growers payable over a period of seven years.

Association president S Appadurai and Secretary Anil Savur D sought this relief at a press conference citing that the plantation sector was going through a crisis. They suggested that these rescheduled loans could carry an annual interest rate of 10%, but the interest burden should be shared equally by the Centre, banks and growers.

They also urged the Centre to direct banks not to invoke the provisions of the Sarfaesi Act and auction the pledged plantations to recover their dues. The growers, Appadurai and Savur said, fear the crop production this year will be down 30% because of rains in January and February which led to an early blossom.

Heavy rains this year led to coffee beans splitting and the ripe fruit dropping to the ground resulting in heavy crop loss. “Harvesting during rains is very challenging,” they said as spreading beans in the drying yard becomes difficult. In the last coffee season also, labour shortage due to Covid-19 led to the entire crop not being harvested.

Coffee Board’s post blossom estimate for 2021-22 of 3,69,000 metric tonnes (MT) is the highest estimate ever made by the Board. Though the blossom and monsoon rains were good, continuous monsoon rains and heavy rains in September and October this year resulted in splitting the coffee berries and the ripe fruits dropping, Appadurai and Savur said.

The Board’s final estimate of domestic production for the year 2020-21 is 3,34,000 MT compared to the post monsoon estimate of 3,42,000 MTs. Arabica production is estimated to be 99,000 MT, down from post monsoon production of 1,02,000 MT. Robusta production is 2,35,000 MT, down from 2,40,000 MT, the Association said.

The Association has also urged the Centre to exempt or reduce the customs duty on imports of agriculture and plantation machinery and equipment. The Centre, it said, could alternatively facilitate collaboration with foreign agriculture plantation machinery and equipment firms to manufacture domestically under the Make in India policy to increase productivity and to overcome low productivity and high cost of labour.