Coffee growers fear 30% dip in arabica output

Coffee growers in the largest producer Karnataka fear that the arabica output for the October 2021-September 22 crop year could shrink by about 30 per cent against the initial estimates of the Coffee Board due to extended rains.

The Coffee Board, in its post-blossom or early estimates, had projected a record crop of 3.69 lakh tonnes (lt) for the current crop year. This included arabica crop of 1.08 lt and robusta at 2.60 lt. Of this, the arabica output in Karnataka was projected at 79,900 tonnes and robusta at 1.86 lt. “Though the blossom and monsoon rains were good, continuous monsoon and heavy rains in September and October 2021 have resulted in splitting of the coffee berries and the ripe fruits dropping resulting in heavy crop loss. We expect the arabica crop to be down by 30 per cent over post-blossom estimates,” said S Appadurai, Chairman, Karnataka Planters Association (KPA), addressing the media ahead of the 63rd annual conference.

Coffee-growing regions in the State are witnessing extended rains brought about by the depression and low pressure areas in the Bay recently. Harvesting of arabicas, which is currently going in, is challenging during rains for the drying and spreading the bean in the yards. The Board should provide subsidies to growers to set up drying yards, he said.

Prices gain

Appadurai said arabica prices are up compared with last year with the frost affecting the crop in Brazil, the largest producer. Arabica parchment prices are up at ₹13,500 per 50-kg bag compared with last year’s ₹9,500. The price increase will benefit the growers, but they are facing crop loss due to extended rains.

Changing climatic pattern and rising production costs continue to pose a challenge to growers, Appadurai said. Citing the International Coffee Organisation’s September report, Appadurai said the apex body for the sector has warned that the uncertainty created by the weather related shocks and disruptions in the trade flows due to the pandemic-related measures have become a serious threat to green coffee supply. The increasing production costs, including fertilizers and labour costs, are expected to reduce growers’ current gains from increased prices and slow down investment in production, ICO had said.

Relief package

Appadurai reiterated the growers’ association demand for a financial relief package to the coffee producers, who are facing severe financial crisis over the past seven years as successive droughts and erratic and heavy rainfall patterns had led to set back in production amidst a downward trend in prices and rising cost of production.

The KPA chairman urged the government to reschedule all types of loans of coffee growers including overdue and NPA accounts into a single term loan account and name it “Special Coffee Term Loan 2020” with a repayment period of seven years, while suggesting fixing the average interest rate at 10% per annum and the interest burden shared equally by the Government of India, Banks and growers.

Appadurai also requested that the government issue suitable directions to banks not to take action under the SARFAESI Act as Banks are taking action against the Coffee Growers under the SARFAESI Act and auctioning their plantations based on the Division Bench Judgment of the Karnataka High Court which has held that under Section 31(i) the expression “Agricultural Land” does not include plantation lands.