Coffee sector likely to get Rs 950 crore, a boost for R&D

Bangalore: The Union ministry of commerce is hopeful of approval from the cabinet by the middle of February for the 12th five-year plan (2012-17) allocations for the coffee sector.

It has approval from the planning commission for a 60 per cent increase in allocation to the sector over the 11th plan, at Rs 950 crore, a top ministry official said.

"The Expenditure Finance Commission has also given its approval for the detailed packages for several schemes. However, it requires cabinet approval. We have circulated a note and are waiting for comments from the finance ministry," J S Deepak, additional secretary, ministry of commerce, told Business Standard on the sidelines of the India International Coffee Festival here on Friday.

He said the ministry had approved continuation of all major schemes such as the one on rejuvenation and replanting, mechanisation, export promotion and research and development (R&D).

"The major focus of the 12th plan would be on R&D. We have enhanced the allocation to R&D by 60 per cent to Rs 140 crore. There are no constraints on spending money here&D. Our thrust area is to find a solution for the White Stem Borer pest attack on Arabica gardens, which is destroying the crop in major growing regions and affecting productivity. We hope to find a solution during this plan period," he said.

Adding: "We have told the Coffee Board to bring the best minds in the scientific world to launch a combined effort to fight this pest and find a solution in the next few years. We want them to partner with the Indian Council of Agricultural Research and the horticulture research institute to find a solution."

He noted Coffee Research Institute scientists had found a solution for leaf rust disease.

Growers in Karnataka, where 72 per cent of India's output comes, had sought a subsidy package of Rs 300 crore from the central government for mechanisation during the 12th plan. During the 11th plan, the government had allocated Rs 50 crore in the fifth year, of which only Rs 22 crore was released to the beneficiaries.