Category Archives: Business & Economy

Coffee Growers Feel the Heat

Somwarpet :

The rising temperatures and a lack of rain have caused a desperate situation for coffee growers.

According to an estimate, nearly 30 per cent of the coffee plantations received blossom showers during March and April, while the remaining 70 per cent are yet to receive the first rainfall.

This situation might have a bearing on the prices of coffee and pepper in the coming season.

Last year, the total production of coffee in the country was 3.5 lakh tonnes while the district produced around 1.6 lakh tonnes of coffee, on an area of 1.10 lakh hectares. According to sources, this year, coffee production will be reduced by at least 20 per cent, due to insufficient and delayed rain, as well as rising temperatures.

Madikeri Coffee Board deputy director Ananth Kumar said delayed rain adversely affected young coffee plants and crop this year.

He said the Coffee Board will conduct pre-monsoon surveys in the month of May every year, to ascertain the production.

He said growers should maintain shade in estates, as temperatures had risen to 32 degrees in some parts of the district, causing dryness of soil.

In some dry areas where annual rainfall is below 50 inches, young plants wilted and died, even under the shade of trees.

In Banavara, Abburkatte, Yedavare and Yedavanadu, coffee growers are worried about crops wilting and dying. Coffee grower M L Ravi from Aigoor said growers are in distress owing to falling prices of coffee, and that delayed rains have added to their woes.

He said last year 50 kg Arabica coffee sold at Rs 10,000-Rs 10,200, but now, the price had fallen to Rs 8,200.

source: http://www.newindianexpress.com / The New Indian Express / Home> States> Karnataka / by Coovercolly Indresh / April 22nd, 2016

Delayed blossom showers, rising mercury rob coffee crop of aroma

CoffeeKF20apr2016

Bengaluru :

The unusually high temperatures and the delay in arrival of pre-monsoon or blossom showers could shrink the robusta coffee crop for the 2016-17 season, starting October.

Growers in the key regions of Coorg and Chikmagalur are concerned over the delay in pre-monsoon showers, crucial for blossoming of the coffee floral buds, and fear that it could impact robusta output by up to a fourth.

Blossom showers and subsequent backing showers are crucial for a good crop. Traditionally, the robusta and arabica areas should receive pre-monsoon showers by March 15 and April 15, respectively, for a good blossom.

“The blossom shower has been very sporadic and scanty this year and it is definitely going to affect the crop, both robusta and arabica,” said Baba PS Bedi, Chairman of the Karnataka Planters’ Association.

“Small growers, who cannot afford to take up sprinkler irrigation, are going to be hit hard,” Bedi said, adding that the planters’ association will soon urge the State government to take up cloud seeding to create artificial rain in the key growing regions.

Water crisis
Though most of the robusta area is irrigated, with growers deploying sprinklers to irrigate their estates without waiting for the blossom showers, the lack of sufficient water storage this year has turned out to be a cause for concern.

Two back-to-back droughts triggered by successive deficient monsoons have created water stress thereby affecting the availability for irrigation, Bedi added.

“The delay in blossom showers and the prevailing unusually high temperatures across all the growing regions is a real cause of worry. It will have a significant impact on the crop loss, but it is too early to quantify the impact,” said Y Raghuramulu, Director of the Balehonnur-based Central Coffee Research Institute (CCRI).

The Coffee Board is expected to take up crop assessment sometime in mid-May.

In addition, the depleting shade pattern in some areas is aggravating the problem this year, Raghuramulu added.

“The situation is terrible in South Coorg. With temperatures ruling 2-3 degrees higher than normal, there is a fear of coffee plants dying in some areas,” said N Bose Mandanna, a planter in Suntikoppa, near Madikeri. About 30 per cent of the robusta area is impacted by the delayed rainfall, he added.

“The overall situation is not comfortable. Though it has rained in some pockets, the quantum of rainfall is not sufficient. The water stress and high temperatures will affect the blossom, thereby impacting the crop,” said Nishant Gurjer, a planter in Chikmagalur.

Plants under pressure
Another factor that could affect the output this year is stressed out plants. “In the last two years, we have been picking some good crop. As a result, the plants are relatively stressed and the output could be impacted,” Gurjer added.

The Coffee Board has estimated the 2015-16 crop’s output at 3.5 lakh tonnes, a 7 per cent increase over the previous year’s 3.27 lakh tonnes.

source: http://www.thehindubusinessline.com / Businessline.com / Home> Economy> Agri Business / Vishwanath Kulkarni / Bengaluru – April 19th, 2016

Briefly

WORLD CONSUMER DAY

The World Consumer Day was celebrated recently in Madikeri under the joint auspices of Kodagu district administration, Food and Civil Supplies Department and Kodagu District Consumer Forum.

Mir Anis Ahmed, DC of Kodagu, inaugurated and V.A. Patil, President, Kodagu District Consumer Forum, presided over the programme which was attended by more than 150 people.

C.V. Nagaraj, retired Senior Chemist, Regional Agmark Laboratory, Bengaluru, demonstrated simple tests to detect adulteration in various food items. He also spoke about the harmful effects of various types of adulteration and on the laws that exist in India against food adulteration.

Associations interested in arranging such lecture-demos can contact C.V. Nagaraj ( 2521640, 9945651990).

CULTURAL FEST

The Department of Tourism and Hospitality Management, Pooja Bhagavat Memorial Mahajana Education Centre, has organised an inter-collegiate cultural festival on April 12 and 13. For registration contact festival convener Paul Iruthayaraj on 9739824423, Faculty coordinators Gunarekha B.S. on 9480438394 or Priyadarshan Bhat on 8867204780.

source: http://www.thehindu.com / The Hindu / Home> National> Karnataka / Mysuru – April 11th, 2016

The urban escape

coorgKF07apr2016

With a sweltering summer on the threshold, Bengalureans are eager to get packing. Idyllic beaches, trekking adventures, wildlife tours and culinary trails, the possibilities are immense.

With airfare and hotel prices set to rise, they are trying to get the best deal without breaking the bank. Tour companies and adventure groups while pointing out how holiday-goers are exploring newer destinations, spell out whats ticking and what’s not!

By all accounts, summer holidays are the perfect time to revisit childhood. Keeping that in mind, ‘F5 Escapes’, a Bangalore-based, alternate travel company, which specialises in designing and executing all-women travel experiences, is holding a ‘Mom and Kids’ Trip’ to Coorg this summer.

Explaining the concept, Malini, founder and chief travel officer, says “As children, we have all chased fireflies. There was a certain magic in those quick, shining flickering lights in the dark. Of course, with time, glaring neon lights took over our night sky. With the concept ‘Chasing the fireflies in Coorg’, moms and kids will have the opportunity to explore the rainforests of Coorg. We help relive the childhood and watch the fireflies. It is also an occasion to learn about organic cultivation and solar living. We are organising the trip on April 23 and 24. Apart from that, we are also planning day trips in May.”

For the wanderlust-struck, any chance to get away from the cacophony is a winning deal. Across the country, the options are unlimited with every nook and corner having a story to tell and every nondescript hamlet something to offer. Himachal Pradesh has been high on the list of Bengalureans for some time now, be it for adventure or for the serene locale.

“When it comes to domestic travel, Kashmir has bounced back this year to be the top trending destination for domestic travel followed by Himachal Pradesh, Sikkim and Ladakh,” informs Karan Anand, head, relationships, Cox & Kings. As far as overseas destinations are concerned, “Switzerland and France continue to be hot favourites this summer. A new addition this year is Russia whereas Thailand, Malaysia, Singapore, Hong Kong and Macau are the most popular destinations in Southeast Asia among Indian travellers. Cambodia, Philippines, Vietnam and Bali are offbeat lovers’ paradise,” he adds. Planning a vacation is no easy task, but for the many nomads in the city, an escape from the city has become inevitable. In fact they are happily infected by the travel bug.

“Summer has always been a popular time to travel amongst many Indians,” points out Ravish Doctor, manager- growth strategy, Skyscanner India. “Be it for a long weekend or an extended holiday, we have witnessed an increase in the number of travellers making the most of the holidays during the summer,” he says.

“From Bengaluru, there has been a steady rise in search for destinations within Southeast Asia. Much like the majority of Indians, travellers from Bengaluru also favour summer travel to more popular destinations such as Bangkok, Singapore, Bali and Kuala Lumpur.

While across the country, London and Paris continue to be the most searched destinations in Europe; in spite of the soaring temperatures, Dubai is emerging as a destination. This may be attributed to Dubai as an all-round family destination which makes it perfect for children during their summer vacations,” he says. In spite of the recent happenings in Europe, surprisingly, there is still a sizable chunk who wants to explore its picturesque locales. “Europe is the perfect holiday destination for Indian travellers who want to escape the summer heat and we are observing an upward trend for this destination. While, destinations such as France, UK, Ireland, Switzerland and Italy continue to be favourites, there are many small regions within these countries that are getting very popular such as Charmonix in France,’’ adds Karan. Clearly, this summer seems to hold plenty of choices and surprises.

source: http://www.deccanherald.com / Deccan Herald / Home> Supplements> MetroLife / by Anupama Ramakrishnan / DHNS – April 05th, 2016

Coorg green cardamom to join select club

It is to get the GI tag soon, says Spices Board

Fresh Impetus: H.S. Srinivas, Joint Director, Spices Board, addressing farmers at the seminar in Kodagu on Monday.
Fresh Impetus: H.S. Srinivas, Joint Director, Spices Board, addressing farmers at the seminar in Kodagu on Monday.

Appangala (Kodagu Dt.) :

Coorg green cardamom is expected to secure the geographical area indicator (GI) tag very soon as all formalities have been completed, according to Joint Director (Development), Spices Board, Sakleshpur, H.S. Srinivas, here on Monday.

He was speaking to presspersons on the sidelines of a regional seminar held at the Indian Institute of Spices Research (IISR) here, on pepper and cardamom. It was organised by the IISR and the Spices Board. Coorg green cardamom is to join the select group of 34 crops in the State for which GI tag applications have been registered, Mr. Srinivas said. The process would be complete once the gazette notification is made soon. The tag would help the product carve out a niche for itself in the market, besides getting all priorities for its production.

He said that Indian spices export had reached an all-time high during the period April 2008 to January 2009, touching a whopping Rs. 4,500 crore. However, the contribution of pepper was slightly down, Mr. Srinivas said. As much as 475 MT of cardamom was exported, which was up by 75 MT compared to the previous year.

Increase in production

In three year’s time, cardamom production would be raised to around 15,000 hectares in Kodagu district, he said. Diseases such as ‘Katte’ and others had accounted for the destruction of cardamom crops in the district in the past. Mr. Srinivas said crop insurance too would be introduced for the commodity in the district soon.

The Spices Board was providing subsidies for cardamom re-plantation, construction of drying yards, and for digging wells and tanks, Mr. Srinivas added. The board had also opened new offices at Bhagamandala in Kodagu and Vanajoor in Hassan.

Earlier, the president of the Karnataka Planters’ Association, K.M. Nanaiah, inaugurated the regional seminar on pepper and cardamom at the IISR premises. The president of the Codagu Planters’ Association, B. Duleep Nanjappa, who was a guest, called upon the farmers who had come in good numbers to ‘help themselves’ in saving the pepper vines from disease by proper management system.

He told the farmers to follow the advise of the scientists of the IISR and the Spices Board not only for saving the plants but also to obtain higher productivity.

source: http://www.thehindu.com / The Hindu / Home> Karnataka / by Staff Correspondent / March 26th, 2009

Youth associations told to focus on rural development

Kodagu Cardamom Marketing Cooperative Association Vice President Kolumudiyana Ananta Kumar said young women should strive towards forming and strengthening their organisations.

He was speaking at a programme organised to mark the 51st anniversary of Galibeedu Yuvaka Sangha near Madikeri on Monday.Kumar said will urge the government to release of funds for the construction of a building for the association.

Galibeedu gram panchayat member M D Subhash Alva said youth associations should concentrate on rural development. They should conduct camps to create awareness among people on government schemes, cleanliness campaign and other activities, he added.

Gram panchayat Vice President B M Rani Muttanna said youth associations should have their own buildings and the gram panchayat members will join their hands in this endeavour.

Yuvaka Sangha President Ududoli S Girish, Government Primary School Headmaster Leela Shedthi, gram panchayat members A T Kumari and Jayalakshmi were present.

Children and youth took part in the taluk-level volleyball tournament, a mini marathon and rural games held at Government Lower Primary School playground in Galibeedu.

Results of competitions

Mini Marathon (men): I – Kodi Jeethan, II - Kodi Deepak, III – Kombarana Gagan
Mini Marathon (women): I – Bachana Dhanya , II – Poojashree, III – K U Mala.
Tug of War (men): I – Galibeedu Yuvaka Mandala, II – Snehithara Yuvaka Sangha
Tug of War (women): I – Galibeedu Friends Team, II- Galibeedu Cool Friends.

source: http://www.deccanherald.com / Deccan Herald / Home> District / Madikeri -DHNS, March 08th, 2016

Healthtech Startup Healtheminds Gets Undisclosed Amount From Robin Uthappa’s Caffeine Ventures

HealtheMindsKF29mar2016

And joining in the ever growing list of sports personalities investing in startups, Robin Uthappa, through his VC firm Caffeine Ventures, has invested an undisclosed amount in Healtheminds, a healthcare technology startup.

These newly raised funds will be used by the company to launch a new product and to increase its reach across India. The company will also hire for its operations team.

Founded in 2013 by Ankita Puri – a former investment banker and Sunita Maheshwari, Yale-trained cardiologist, Healtheminds focuses on tackling mental and emotional problems of patients. The company also has an online platform through which users can connect with counsellors, psychologists and coaches through video, telephonic and chat communication systems.

It claims that currently, there are more than 70 professionals across India on its platform. It provides video counselling while keeping the identity of the caller anonymous. Until now, the company was bootstrapped and claims that of doubling its users every month. The company aim to do at least 5,000 online therapy sessions each month on the platform.

Robin Uthappa, who invested in this round, said,

I invested in HealthEminds to help break this barrier that is holding people back from reaching their full potential. Today, online is a great medium for people to easily reach out for help whether it is to overcome depression, blocks or break barriers in their lives with the right help.

Commenting on investment from Robin, Sunit Maheshwari, co-founder of the company, said,

It’s wonderful to have an investor on board who understands the importance of the mind in sport and in health.

The company is charging between ₹500 and ₹1500 per session depending on the professional. It works with 45 mental healthcare professionals nationally and is targeting to increase this number to 100 by the end of the calendar year. Healtheminds panel of professionals comprises of renowned psychologists, counsellors, life coaches, psychiatrists and nutritionists, who are all equipped to help improve personal and professional development.

Users can book an online session with a professional of their choice at a time that suits them and have a video session from the comfort of their home.

As for Uthappa, this is not the first time he is investing in a startup. Earlier, he had invested close to Rs 1.5 crore in iTiffin – a Bangalore based healthy food/tiffin delivery service provider.

source: http://www.thetechportal.in / TheTechPortal.in / Home> News> Start-Ups / by Jeet Suthar / March 29th, 2016

Weak economy spurs demand for low-priced coffees

Drop in prices hurts realisations even as shipments see 18% growth in March quarter

coffeeKF29mar2016

Bengaluru :

Sluggish economic conditions in part of Europe and West Asia is triggering demand for the low-priced coffees such as the robusta cherry and instant varieties as consumers in these regions are seen shifting to the cheaper beverage, exporter said.

The trend is reflected in the increased shipments of these varieties from India over the past three months.

Higher shipments
“We are noticing a trend that buyers in Europe and the Gulf Countries are seen buying more of cheaper coffees than in the past,” said Ramesh Rajah, President of the Coffee Exporters Association.

The shift in preference in the Gulf nations could be influenced by the drop in oil prices.

Permits rise
Total coffee permits issued by the Coffee Board for the January 1-March 24 period were up around 18 per cent at 90,274 tonnes (76,567 tonnes in corresponding last year), primarily driven by a surge in shipments of robusta cherry and the instant variety.

Permits issued for robusta cherry were up 32 per cent at 40,618 tonnes (30,756 tonnes), while for instant coffee shipments including that of re-exports, the permits issued were up 13 per cent at 25,299 tonnes (22,416 tonnes) for the period.

For the robusta parchment or the washed robusta, which command a premium in the world market, the permits issued dropped around 23 per cent to 5,822 tonnes (7,595 tonnes).

Changing preferences
However, the premium variety arabica parchment saw an increase in demand at 15,099 tonnes (11,837 tonnes).

Coffee Board officials also attributed the increase in demand for robusta cherry and instant coffee to some extent to the shift in consumer preferences to cheaper varieties in markets such as Europe.

An early harvest of robustas has also contributed to the increase in shipments as more coffee was available for exporters with growers, especially the smaller ones, preferring to sell their produce as prices continued to remain volatile.

An official with a global trading house attributed the jump in the January-March quarter shipments to an early robusta crop this year and also to the front-loading of sales by the producers, wherein growers sold off their produce as soon as it was ready to sell a few weeks ago.

But now, the market arrivals have slowed down as growers – especially the larger ones – are beginning to hold back their produce, the official said.

The harvest of robusta is complete and the growers, especially the Arabica producers are looking forward the blossom showers in the week ahead.

Export realisations
Though the March quarter shipments have been good, the earnings are likely to be under pressure due to lower prices.

The per tonne realisation has dropped considerably to ₹1,55,077 in March quarter as compared to ₹1,77,660 in the corresponding period last year.

Exporters are a bit sceptical of sustaining the growth trend in shipments in the year ahead.

“The near term order books are good, but there is slackness in the medium to long-term,” Rajah said.

The Coffee Board has pegged the 2015-16 crop at 3.5 lakh tonnes – a seven per cent increase over the previous season’s 3.27 lakh tonnes.

source: http://www.thehindubusinessline.com / Business Line / Home> Economy> AgriBusiness / by Vishwanath Kulkarni / Bengaluru – March 28th, 2016

O! Success So Sweet!

When things around you are falling apart, there are only a few who not only rise to the occasion, but also create opportunities for themselves and others. Having been able to support the tribals, rural folk, and small farmers with her brand Nectar Fresh, Chayaa Nanjappa is one such example.

Chayaa’s single-minded efforts have established her honey brand – Nectar Fresh – in a highly quality-conscious premium segment. While serving high-end hotels and resorts, she (her brand) has created employment and better earning opportunities for tribals and marginal farmers. In fact, she has come a long way since the launch of the brand in 2007, and now she receives orders from importers from different parts of the world who want to buy honey from her company. She is also hopeful that Nectar Fresh products will soon be decked up at Walmart stores.

The honey market is a crowded space with big brands at play, so what made a small Khadi & Village Industries Board-backed rural enterprise from Mandya (in Karnataka) to earn a name for itself in both domestic and international markets? According to her, it is their obsession for quality that has made the brand stand out. The global exports of natural honey is about $2.3 billion (CY2014), of which India’s share is just $77 million, which is a minuscule 3.5%. Nanjappa saw the potential for growth. When she started in 2007, total honey production by her company was just 20 tonne per month. That has now increased to 200 tonne per month. And the company has plans to further increase the production to 400 tonne per month in the near months.

Earlier, she would export through agents, but presently, the company has started exporting under its own brand name. That most of her new orders are accounted for by referrals from existing, happy clients is a sign of her company’s product quality.

In the domestic market too the company has positioned itself strategically at few select outlets like Himalaya Drugs and Kerala Ayurveda, and serves brands like Kitchens of India, etc., to stay away from the clutter.

Though the company has expanded its product portfolio with jams, sauces, and coffee, honey still remains the mainstay. Her efforts in the field of rural empowerment and giving tribals and marginal farmers opportunities to sell their produce in the global market has earned her many state and national-level accolades, including the Priyadarshini Award by Federation of Indian Women Entrepreneurs (FIWE). She proudly says that Nectar Fresh has become the first brand in India to use women-owned logo of WEConnect International, a US-based women entrepreneurs’ body which supports brands that stand for quality. Chayaa is a social capitalist who deserves much praise.

TDB: What was life like before you started Nectar Fresh, and what made you take up entrepreneurship as a profession?

Chayaa Nanjappa (CN): I started this business at a point in time when I was going through a tough phase in my life due to personal reasons. I got into the business because I wanted to do something to keep myself busy and be independent, and create employment to help other needy people. And that’s how Nectar Fresh Foods came into existence. Initially, I started it as a small scale unit in Bangalore, but later, I moved to Mysore.

TDB: How did you manage the initial funding? Why honey and food products only?

CN: As my place of origin is Coorg, I looked at products which can be related to the region. Long ago, Coorg was known for its honey but, gradually, the honey production fell to shockingly low levels. So, I decided to source best quality honey from different parts of the country and market it under the brand name Nectar Fresh in small quantities. I underwent a week-long training on honey production at the Central Bee Research and Training Institute in Pune and learnt technicalities involved in the production and storage of honey.

I had lost my father and had no one to look up to for guidance. I took some financial help from my mother. I prepared a project report based on which I got a loan of Rs.10 lakh from a bank. I also got a lot of support from the Khadi and Village Industries Board.

TDB: Having started with just a corpus of Rs.10 lakh is very interesting and inspiring. What was your initial approach?

CN: I market my products on my own across India; I have no budget for advertisements. My approach was to do something new and give a unique positioning to my product. There was a monopoly of honey brands from Germany and France in the high-end segment of the hospitality industry in India. No Indian brand was catering to the segment that includes high-end hotels and resorts. I maintained product quality from the very beginning. Quality and world-class packaging helped us to break the monopoly of foreign brands. To counter MNCs, we expanded our product line, and now supply an entire basket of products including honey, jam, sauce and coffee.

TDB: Tell us something about your export markets. And how exactly did you foray into them?

CN: Until recently, we were exporting through agents but are now exporting directly across the globe. We are enhancing production capacity of honey from 200 tonne per month to 400 tonne per month to meet demand from export markets. We also have plans to produce 50 tonne of jam per month. Well, ITC was the first organisation that recognised us for our quality, and thus, I got my first order from them. The association with ITC gave me the confidence to approach other premium hotels. My export orders started coming when people started noticing our products in some of the premium hotels in India. The positioning of our products in these hotels helped in image building. Two months ago, we started exporting directly under our brand name.

TDB: You have ventured into a highly competitive segment, both in the domestic as well as overseas markets. How do you deal with competition?

CN: Our products stand for quality, and it’s an integral part of our brand. Nectar Fresh has grown due to our ethics in business. Because of positive word of mouth, farmers have remained loyal to us, and for the last five to six years we have held on to the same group of suppliers. We source directly from farmers and with the growth of the company, farmers have also benefitted. We may be a small-scale unit, but from the batch code, we can trace a product from the level of procurement to final despatch. That’s how we maintain consistency in quality in the entire process. It’s because of the quality of our products that even people from US and Germany come to our small unit and buy from us.

TDB: What role has your family played in your success? Were there initial apprehensions?

CN: As I have already mentioned, I started my business when I was going through a rough phase in life, and due to that my mother had her apprehensions. But still, she encouraged me. My close friends supported me a lot too. Rajappa, my business partner, has been a big, big, big support.

TDB: What would be your advice to all, especially women, who want to take a plunge into entrepreneurship in general, and exports and imports in particular?

CN: Work hard. If you are really focused, you can achieve the impossible. My new unit in Mandya in Karnataka is a 100% rural enterprise, but I haven’t availed any subsidy for it. The system is such that it will take its own time. Instead of wasting time and energy on it, if you focus it on your work, you will get better results. My past experience made me realise this, and this time I applied for a loan from a bank and set up my unit without taking any subsidy. There are many opportunities for those living in urban areas, but the necessities of rural women need to be addressed. They can make a big difference to exports. They have world class products around them, but they don’t know how to take them to market.

source: http://www.thedollarbusiness.com / The Dollar Business / Home> Cover Story> March 2016> Power Woman> O Success, So Sweet / by Sisir Pradhan / March 20th, 2016

Planters feel relieved as Karnataka scraps agriculture income tax

Bengaluru :

In a relief to the beleaguered coffee, tea and rubber growers in Karnataka, the State government has proposed to abolish the agriculture income tax with effect from April 1, 2016.

“There is a long standing demand of growers of coffee, tea, rubber and other plantation crops to abolish Agricultural Income Tax. I propose to abolish Agricultural Income Tax with effect from 1st of April 2016,” Karnataka Chief Minister Siddaramaiah said presenting the State Budget for 2016-17 here on Friday.

With this, Karnataka, the largest coffee producer, has followed the neighbouring Tamil Nadu, which had abolished agriculture income tax way back in 2004. Even Kerala has provided a relief to the planters community by exempting the income tax for a year in 2016-17.

Karnataka’s latest move will provide relief to about two dozen companies such as Tata Coffee and Bombay Burmah Trading Corporation that operate coffee, tea and rubber plantations in the State besides thousands of individual coffee growers. Plantation companies had to pay a 35 per cent tax on their net income in the State and the total outgo in the State is estimated at around ₹20 crore.

“It is a good news for the plantation industry and will give us a boost,” said Baba PS Bedi, Chairman of the Karnataka Planters’ Association (KPA). Bedi further said the proposed move would provide some relief for the plantation sector that is becoming unviable, reeling under the impact of declining realisations and rising input costs.

Though Karnataka had suspended the agriculture income tax for individual growers way back in 2004 when the coffee prices had touched a 100-year-low of around 0.40 cents per pound, the growers had to wait for the notification every year exempting the income tax. “It was a kind of Damocles Sword hanging on our head. Now, with this budgetary announcement, we need not have to worry at all,” said N Bose Mandanna, a large grower at Suntikoppa.

K Kurian, Managing Director of Devon Plantation & Industries Ltd, said the move would help the plantation companies to re-invest in developing their estates in the long run.

Besides providing a higher allocation of ₹4,344 crore to the agriculture department, Karnataka is targeting to distribute ₹11,000 crore in agriculture loan to 23 lakh farmers in the State. To implement the new crop insurance scheme during 2016-17, the State has earmarked ₹675.38 crore.

source: http://www.thehindubusinessline.com / Business Line / Home> Markets> Commodities / by The Hindu Business Line Bureau / March 18th, 2016