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Failure to tend coffee crop may hit output

M.R. Subramani

CHENNAI, July 2

COFFEE production in the country is unlikely to touch the estimated 3.25 lakh tonnes during the 2001-02 season (October-September) in view of the growers' failure to take precautionary measures to keep the crop healthy and a long drought after the blosso m showers in March.

``Pests and diseases are taking a toll of the plants as the growers have not bothered to take care of the crop due to low prices,'' the Coffee Board Vice-Chairman, Mr Bose Mandanna, told Business Line.

While the stem borer was the major problem in coffee plantations, the berry borer was also rampant. ``Most growers, especially small growers, have not sprayed the plants with the necessary pesticide/insecticide,'' Mr Mandanna said.

While this could lead to a 10-15 per cent decline in the estimated production for the oncoming crop year, it could have long-term effects too, he said.

``Growers in most of the plantations we have visited say the crop might be at least 15 per cent lower than what was expected earlier. More than that, this could affect production for the next five years and result in additional expenditure,'' Mr Mandanna said.

While the growers will have to spend in removing and burning the affected plants, they will have also to replant, which could take another five years to yield.

With the global market facing an oversupply, chances of the prices improving were bleak, he said. ``The frost has begun in Brazil but the growing areas have now been moved away from the frost-prone zones. That means frost will have minimum impact and the market will continued to be oversupplied,'' he said.

On the other hand, the growth after the blossoming was stunted. ``There has been a long drought after the blossom showers. This could also affect the crop,'' he said.

The Coffee Board has estimated the 2001-02 crop to be a record 3.25 lakh tonnes against 3.01 lakh tonnes this season.

Meanwhile, coffee growers in Karnataka have urged the State Government to exempt the sector from Agricultural income-tax (AIT).

A delegation led by Mr B.B. Shivappa, member of the Legislative Assembly, met the Chief Minister, Mr S.M. Krishna, recently and requested that AIT be suspended for two years.

``The request has been made so that growers can use the money for employment. Coffee sector is labour-intensive and currently, even big companies are unable to employ people in view of the higher AIT,'' Mr Mandanna said.

Karnataka has imposed 50 per cent AIT, down from the earlier 65 per cent. ``But that is not enough. Even when the prices are good, all the gains are spent paying AIT. We have requested that AIT be brought on a par with the Central Income-Tax, at 30 per c ent,'' he said.

The Karnataka Government has asked the State Finance Secretary, Mr Gopal Reddy, to look into the issue along with the Chief Minister's Special Secretary and former Coffee Board chairman, Mr B. Ranganath.

The Tax Reforms Commission, headed by Mr M. Veerappa Moily, has also promised to look into the demand to restructure taxes in the sector, Mr Mandanna said, adding that the commission was expected to deal with the issue in its second report.