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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Worker’s body reaches Ranchi from Saudi 4 months after death; family rejects over compensation
Ranchi (PTI): The body of a migrant worker from Jharkhand’s Giridih district killed in Saudi Arabia in October last year has arrived at Ranchi Airport, but his family refused to accept it over pending compensation, officials said.
Shikha Lakra, team leader of the state migrant control cell, told PTI that, before taking the body of Vijay Kumar Mahato, the family is demanding compensation from the private company where he used to work in the Arab country.
Mahato was killed in an alleged crossfire between the police and criminals.
“Since it was a bullet injury case, the matter is before a court in Jeddah. The final compensation may depend on the court’s decision,” Lakra said.
“The Indian Embassy informed us about the body’s arrival, and coordination was done with district authorities. Our role is limited to coordination in cases involving overseas employers and foreign jurisdiction,” she added.
Giridih Deputy Commissioner Ram Niwas Yadav said the authorities will try to convince the family to perform the last rites.
“We have already sanctioned Rs 5 lakh under the government scheme for migrant’s deaths abroad. The compensation payment might take some time,” he said.
The body is currently at the mortuary of Rajendra Institute of Medical Sciences (RIMS) in Ranchi.
The Family members said they will only accept it if the company provides written assurance regarding compensation. “Without that assurance, we will not receive the body,” said Ram Prasad Mahato, the deceased’s brother-in-law.
Mahato, a native of Dudhpaniya village in Madh Gopali panchayat under Dumri block, was employed as a tower line fitter. His family said he was struck by a bullet during a gunfight between local police and an extortion gang and later succumbed to his injuries.
Social activist Sikander Ali said Mahato is survived by his wife, two young sons aged five and three, and elderly parents.
