New Delhi: The Government will simplify the Coffee Act so that coffee growers do not lose their land if they are not able to pay debt, said commerce and industries minister Piyush Goyal, adding that a simplified Coffee Act will promote research and facilitate coffee trade. In a meeting with coffee growers, roasters and exporters in Bengaluru on Saturday, Goyal assured that the government will not only simplify the Coffee Act but it will also amend the SARFAESI Act that is invoked by banks to seize the land of coffee growers in case of default in loan repayment by them.
Goyal said the present Coffee Act was enacted in 1942 during the British Raj and several provisions of the law have become redundant and affect the coffee trade. He said the government will remove those provisions that are restrictive and regulatory in nature. In the meeting, coffee growers expressed concerns of losing their lands in view of the notices issued by the banks under SARFAESI Act. Goyal assured them to raise the issue with the concerned ministry.
In 2004, Prime Minister Atal Bihari Vajpayee’s government had passed the SARFAESI Act that gives wide powers to banks to seize the movable and immovable property of loan defaulters. The government will also increase the assistance provided to coffee traders under the Transport and Marketing Assistance Scheme (TMA) to deal with the rising freight cost. Several exporters have expressed concerns that India may lose its traditional coffee export markets due to rising freight charges.
In India, coffee is mostly grown in southern states, particularly in Karnataka, Tamil Nadu and Kerala. According to an estimate, there are more than 2,50,000 coffee growers in the country and 80% of the country’s coffee production is exported to European countries, USA, Russia and Japan. According to the latest official data available with the Coffee Board of India, in 2020-21, the country exported more than 1,64,000 ton coffee to nearly 50 countries in the world.
The minister also assured the coffee growers that their request for restructuring of loans and extension of loan period will be considered as they have been facing distress due to the outbreak of Covid-19 global pandemic. Goyal said the government was planning to shift the supervision of the Coffee Board of India to agriculture ministry. The Board now functions under the ministry of commerce and industries.
Goyal said it will help the coffee growers to take advantage of all agriculture related scheme of the government. The minister said the issue of the damage caused by the Coffee White Stem Borer will be raised with the Indian Council of Agricultural Research (ICAR) under the department of agriculture.
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