Centre to re-evaluate & simplify Indian Coffee Act as per current needs

The Ministry of Commerce on Saturday made it clear that it will reevaluate the Indian Coffee Act of 1942 to make it suitable in regards to the present needs of the market while expediting its growth.

Minister of Commerce Piyush Goyal during an interaction with coffee growers, roasters, exporters and other stakeholders at Coffee Board Head Office, Bengaluru discussed the issue among other matters. During the meet, coffee producers expressed their concerns over loss in regards to the notices issued by banks under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act.

Minister Goyal vows to discuss grower's distress and find suitable solution

Minister Goyal promised coffee growers that the issue will be positively discussed with other concerned departments and that a fitting resolution would be taken soon. The present Coffee Act, which was enacted in 1942 has several provisions which are irrelevant and are a major obstacle to the coffee trade.

"Therefore, it was decided in the meeting to completely relook at the provisions of the Act and to remove the provisions which are restrictive and regulatory in nature to bring out a simple act that suits the present needs of the coffee sector and facilitates its growth," a statement by the Ministry stated.

Exporters seek relief under transport rates

Meanwhile, various exporters raised concern regarding the increase in international freight rates resulting in the Indian agri-exports to several destinations becoming uncompetitive. The exporters sought increased assistance under Transport and Marketing Assistance Scheme (TMA).

Minister Goyal subsequently assured exporters that a special package to support agri-exports at least for one year will be granted under the scheme to tackle the present crisis. Discoursing the menace of Coffee White Stem Borer disease, minister Goyal said that a request will be made to the Department of Agriculture and the Indian Council of Agricultural Research (ICAR) to initiate advanced research on the issue.

Coffee board urges Goyal to restructure loan terms

The Coffe Board also urged Minister Goyal to announce the restructuring of all existing loans into a single term loan with a long repayment period and also extend fresh working capital with soft interest. Goyal assured them that a feasible package will be worked out after discussion with ministries concerned, a Ministry statement maintained.

(Inputs: PTI)

(Image: PTI)