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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KSRTC to run 1000 special services to clear Christmas rush
Bengaluru: The Karnataka State Road Transport Corporation will operate 1000 additional special services in view of the Christmas festival.
In addition to the existing schedule, the special services will run on 19.12.2025, 20.12.2025 and 24.12.2025. Further, special buses will be operated from various places of intra & Interstate places to Bengaluru on 26.12.2025 & 28.12.2025.
Special buses will be exclusively operated from Bengaluru Kempegowda Bus Station to Dharmastala, Kukkesubramanya, Shivamogga, Hassan, Mangaluru, Kundapura, Shringeri, Horanadu, Davangere, Hubbali, Dharwad, Belagavi, Vijayapura, Gokarna, Sirsi, Karwar, Raichur, Kalaburagi, Ballari, Koppala, Yadgir, Bidar, Tirupathi, Vijayawada, Hyderabad and other places.
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Special buses from Mysuru Road Bus Station will be exclusively operated towards Mysuru, Hunsur, Piriyapatna, Virajpet, Kushalanagar, Madikeri.
The corporation has also announced a discount of 5 per cent on the fare if four or more passengers book tickets under a single reservation. A discount of 10 per cent will be extended on return journey tickets if onward and return tickets are booked simultaneously.
In addition to the above, special buses will be operated from all Taluk/District Bus Stands in the jurisdiction of KSRTC based on the traffic needs.
