Financial Daily from THE HINDU group of publications
Thursday, Aug 29, 2002
Financial Daily from THE HINDU group of publications Thursday, Aug 29, 2002 |
|
|
|
|
|
Agri-Biz & Commodities
-
Coffee Jaswant, Fernandes to visit coffee areas — Effort to `feel the pulse' Chitra Phadnis
BANGALORE, Aug. 28 THE Finance Minister, Mr Jaswant Singh, and the Defence Minister, Mr George Fernandes, will visit Chikmaglur in the first week of September to talk to the troubled coffee and areca growers and "feel their pulse". This is the second high-level delegation visit to Chikmagalur, on the heels of the visit on Monday by the Price Stabilisation Fund Committee headed by Mr L.V. Saptharishi, Additional Secretary, Commerce Ministry. "All associations, unions, coffee and areca growers are planning to meet Mr Singh and Mr Fernandes," said the All-India Coffee Action Committee (AICAC) President, Mr G C Chandramohan. The coffee industry will try once again to lobby for waiver of interest running to Rs 480 crore, which was turned down by the RBI and a minimum support price for coffee. "We are happy that the Government is at least interested enough now to come and visit us," Mr Chandramohan said. "All these days, we were running up to Delhi to meet them." The Price Stabilisation Fund (PSF) Committee visit on August 26 was an informal exercise to find out if growers were interested in a price stabilisation scheme. The team said the Government was "contemplating" a sum of Rs 300 crore to be set aside for coffee, rubber and tea. The scheme would have contribution from the industry in the form of subscriptions. A trigger price range (a suggested range is between 70 and 90 US cents) would be agreed on and if prices fell below the lower limit, the PSF would chip in with money. If prices went up above the upper limit, the growers would pay back the scheme. At the moment, growers were incapable of contributing to the scheme, Mr Chandramohan said. The AICIAC believes that the subscription amount should be nominal, affordable by the smallest grower. According to its estimates, the industry needs Rs 1,300 crore for revival for the benefits to reach all growers. The Coffee Action Committee has also objected to the suggestion of an export cess or duty as payback mechanism to the scheme and has asked for some other route to be evolved. The PSF committee has yet to work out how much the growers will need to contribute and the amount they would get in case of price falls.
Send this article to Friends by E-Mail
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |
Copyright © 2002, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|