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Lockdown brews fresh crisis for Karnataka coffee growers
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SME Times News Bureau | 21 Jun, 2020
Reeling under distress and
losses due to rains, floods and landslides over the last two years, the
Covid-induced lockdown has been brewing fresh crisis for coffee growers
in Karnataka, the land of the aromatic beverage, according to a trade
representative, here on Saturday.
"Even as we were grappling with
the fallout of floods and landslides on plantations over the last 2
years, the extended Covid lockdown spelt heavy losses for us as it
disrupted operations and damaged coffee beans," Karnataka Planters'
Association Chairman Shirish Vijayendra told IANS from Chikmagalur,
about 240 km northwest of Bengaluru.
As plucking of Arabica and
Robusta beans was getting over, the lockdown, enforced on March 25 and
extended since then to contain the pandemic, prevented growers from
trading, curing and exporting coffee in seed or powder form.
"The
suspension of public transport and prevention of vehicular movement
during the first two phases of the lockdown till May 3 also prevented
growers from harvesting beans and pepper inter-crop, as workers couldn't
commute to estates for weeks," Vijayendra recalled.
With migrant
workers from neighbouring states, like Tamil Nadu and Kerala, returning
to their native places to avoid coronavirus infection, movement of
harvested coffee to curing works was affected.
"As work in
plantations came to a grinding halt due to lockdown restrictions,
growers had no income as beans couldn't be processed for sale or curing
and trading for domestic consumption or exports," lamented Vijayendra.
Though
many restrictions for the agriculture sector were eased after the
21-day first phase of lockdown, the plantation commodity sectors, like
coffee, tea, rubber and spices, didn't benefit as they are considered
commercial crops and not exempted from taxes and other central or state
levies.
The prolonged lockdown also held up coffee at the farm
gate of growers, curing works, traders and at ports. "Though about 70
per cent of coffee is exported, domestic consumption was affected as
roasters, retail outlets, cafes and hotels remained shut and beans
couldn't be processed or sold," said Vijayendra.
Coffee
production declined 50 per cent in 2019-20 and 35 per cent in 2018-19
due to heavy rain, floods and landslides from about 3,00,000 tonnes in
the past. Fall in international prices also affected export revenue.
Drought
and dry weather for three consecutive years (2015-16 to 2017-18) due to
the southwest monsoon's failure had a cascading effect. The steep rise
in input cost, wages and social benefits to workers also shot up the
production cost.
"We estimate the overall loss to the coffee
plantation sector in Karnataka at about Rs 700 crore due to disruption
in harvesting, trading and export because of the lockdown and the
coronavirus fallout," reiterated Vijayendra.
According to the
Association, the loss in harvesting Robusta crop is Rs 131 crore, in
Arabica and Robusta gleanings Rs 88 crore, in inventory of beans held by
growers Rs 144 crore, in harvesting of pepper Rs 78 crore and exports
Rs 250 crore.
Exports were also affected as transportation from
plantations to ports was delayed due to lockdown and shortage of labour
and vehicles.
"As offices of traders and exporters remained shut
and operations at Mangaluru and other ports suspended due to
non-availability of labour, our export stocks got stuck for several
weeks," said Vijayendra.
As the largest producer of the aromatic
beans, Karnataka accounts for about 70 of coffee production in the
country, with dozen districts across the central, coastal and southern
regions of the state, like Chikmaglur, Kodagu and Hassan, spawning the
rich-bio diverse Western Ghats in the Deccan plateau, producing the
beans since 500 years.
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