6000 coffee growers in K’taka stand to lose plantations over unpaid loans
Owe over ₹500 crore to banks: Report
Bengaluru: Nearly 6,000 coffee growers across Karnataka’s key coffee-producing districts—Kodagu, Chikkamagaluru, and Hassan—are at risk of losing their plantations, as the deadline for repaying loans ended on Monday.
These growers collectively owe over Rs 500 crore to various banks in Karnataka. With the deadline under the one-time settlement (OTS) scheme now expired, banks are preparing to recover their dues by auctioning the plantations under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, as reported by Deccan Herald on Tuesday.
Though coffee crop loans are not covered under SARFAESI, loans taken for plantation development attract penal action. Various banks have already issued auction of property notices to coffee growers in Chikkamagaluru and Kodagu districts.
“Thousands of coffee growers in Karnataka who have taken loans for various development activities over the past many decades, have defaulted to banks and the total amount left unpaid has now swollen to more than Rs 500 crore,” DH quoted M.J. Dinesh, Chairman, Coffee Board of India, as saying.
Dinesh said that they met Finance Minister Nirmala Sitharaman in November 2024 and requested a package to bail out coffee growers. She agreed to their demands and in consultation with the Finance Secretary, a one-time settlement (OTS) scheme was prepared. Under the scheme, coffee growers were offered time until June 30, 2025, to repay loans with concessional interest rates—3 percent for loans under Rs 25 lakh, and 4 percent for loans above Rs 25 lakh and up to Rs 50 lakh.
However, the uptake has been limited. Only 518 growers in the state availed themselves of the scheme.
"Coffee growers have been facing several challenges such as low yield, high cost of operation. The labour and input costs have gone up steeply over the years. It will be very difficult for small growers to repay in one or two instalments. We urge the banks and the government to extend the deadline for repayment," DH quoted Arvind Rao, a grower from Chikkamagaluru and Chairman of Karnataka Planters Association, as saying.
Dinesh stated that banks have already started sending notices to growers who missed the March 31 cutoff and will begin the recovery of loans from July 1. He further added that he plans to meet finance ministry officials in Delhi this week to request an extension of the deadline.
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Man murdered over decade-old personal dispute, accused arrested
Belagavi (Karnataka) (PTI): A 49-year-old man was hacked to death with a machete in this district, allegedly over a personal dispute dating back nearly a decade, police said on Tuesday.
The deceased has been identified as Basappa Hosamani, a resident of Sadoni village, they said.
The accused, Irayya Sangayya Mathapati (32), has been arrested in connection with the murder, police said.
According to the police, the incident occurred on Monday evening in Hoolikatti village of Savadatti taluk.
The crime is linked to an incident that took place about ten years ago, when Hosamani allegedly eloped with the accused's mother and went to Kolhapur in Maharashtra. At the time, accused Mathapati was 18-years-old.
Police said Hosamani had recently returned to the village for some work after leaving the woman in Kolhapur.
Investigators believe the accused, who had been nursing a long-standing grudge over the issue, attacked Hosamani with a machete, inflicting multiple fatal injuries.
After the incident, the accused allegedly informed the police himself and remained at the scene until officers arrived, they said.
A case of murder has been registered at the Savadatti police station, and further investigation is underway.
