Reaching out to the coffee industry stakeholders, Commerce Minister Nirmala Sitharaman said on Monday that issues faced by growers relating to white stem borer menace, transfer of technology and the rainfall insurance scheme would be looked into by the Government.

Addressing the first stake holders meet of the coffee industry in Bangalore, Sitharaman said that a focussed study group would soon be formed by the Commerce Ministry and the Coffee Board to understand research made so far on the white stem borer. The idea is to collate all credible information relating to borer by the start of next season.

The borer menace, unique to the Indian arabicas -- the milder and premium coffee grown in the country -- is threatening to drive the Arabica variety to extinction. Production of arabica has come down significantly in the past few decades. Growers point out that arabica, which used to account for about 82 per cent of India's total coffee output in the 1950s is now down to around 33.6 per cent of the country's total coffee produce.

Sitharaman also told the growers that issues relating to transfer of technology for the equipment used by the growers and the need to incentivise them would be looked into. While large growers are able to afford the equipment by importing them, the smaller growers are finding it difficult to address the manpower shortage amidst rising labour costs. A section of the growers also blamed the labour shortage to the national rural employment scheme.

Growers raised the issue of social costs, taxation while some demanded that current rainfall based insurance scheme need to be restructured as rainfall pattern across key growing regions mainly in Karnataka, which accounts for about 70 per cent the country’s coffee, has seen wide fluctuation in recent years. Also, they demanded that relief extended to small growers should also be given to those with landholding of over 10 hectares wherever crop loss due to heavy rains has exceeded 50 per cent.

Earlier in her opening remarks, the Minister expressed displeasure over the functioning of the commodity boards and asked them to beef up their performance. “I am thoroughly unhappy with the boards (all commodities boards) as they are where they were. I am sorry to be blunt. The boards must sit up. Not just sit up but do a lot as I am answerable for their functioning. They have to do their bit” Sitharaman said.

India’s coffee exports in current calendar year till September 17 stood at 2.35 lakh tonnes, marginally lower that corresponding last year’s 2.45 lakh tonnes. Output for the 2014-15 season is projected to be 3.44 lakh tonnes, as per the post blossom estimates over last year’s 3.04 lakh tonnes.

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