The Hindu Business Line : Outlay for coffee increased to Rs 750 cr in Eleventh Plan

Bangalore, Oct 30 The Eleventh Plan (2007-12) outlay for the coffee sector has been more than doubled to Rs 750 crore from the Rs 300 crore in the Tenth Plan, with the Government planning to embark on a massive replantation exercise in the white stem borer infested areas.

The Union Minister of State for Commerce, Mr Jairam Ramesh, said on Tuesday that the Eleventh Plan estimates were being approved by the National Development Council on November 8.

Addressing the 49th annual general meeting of the Karnataka Planters’ Association in Bangalore, Mr Ramesh said that enhancing the outlay for the coffee sector itself is a testimony to the Government’s commitment towards the sector.

The Government proposes to take up replantation in about 70,000-80,000 hectares during the 11th Plan Period.

New robusta variety

Mr Ramesh said a new robusta variety of coffee - the first in 21 years - is slated to be released in December, while sequencing of coffee genome has also been taken up to help understand it better.

Stating that labour shortage is going to be a major problem for the coffee industry, he said the Coffee Board had entered into an agreement with IIT-Kharagpur to develop cost-effective, affordable farm machinery for small growers.

The Chairman of KPA, Mr Jeffry Rebello, said the heavy rains in many coffee growing areas could impact the output in coffee year 2007-08.

According to Coffee Board post-blossom estimates, output is expected to be 2.91 lakh tonnes, with arabicas at 1 lakh tonnes and robustas at 1.9 lakh tonnes.

In, Karnataka coffee output would be at 2.12 lakh tonnes, comprising 82,000 tonnes of arabica and 1.3 lakh tonnes of robustas.