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Forum 2 Akhtar e

The document discusses the Indian coffee sector and risk management tools available to coffee growers in India. It notes that the Coffee Board of India, established in 1942, is the nodal agency responsible for the development of the coffee sector. It facilitates the sector through R&D, capacity building, information dissemination, market promotion, and incentives. It also provides welfare measures for small growers and workers. The document outlines various financial tools available to coffee growers to manage risks like weather fluctuations and price instability, including insurance schemes and price stabilization funds administered in partnership with other agencies. It concludes by discussing the roles of the Coffee Board, government agencies, grower cooperatives and associations in developing and implementing these risk management schemes.

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Aniket Pallav
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66 views7 pages

Forum 2 Akhtar e

The document discusses the Indian coffee sector and risk management tools available to coffee growers in India. It notes that the Coffee Board of India, established in 1942, is the nodal agency responsible for the development of the coffee sector. It facilitates the sector through R&D, capacity building, information dissemination, market promotion, and incentives. It also provides welfare measures for small growers and workers. The document outlines various financial tools available to coffee growers to manage risks like weather fluctuations and price instability, including insurance schemes and price stabilization funds administered in partnership with other agencies. It concludes by discussing the roles of the Coffee Board, government agencies, grower cooperatives and associations in developing and implementing these risk management schemes.

Uploaded by

Aniket Pallav
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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JawaidAkhtar Chairman, CoffeeBoardofIndia

06-03-2012 ICO_Core Group_Meeting 1

IndianCoffeesector
Totalp plantedarea 4 404,645 4, 45Ha Totalno.ofholdings 269,565 99%ofholdings(266,869)aresmallholdings(below10Ha) CoffeeBoard,MinistryofCommerce&Industryisthe

nodalagencyfortheoveralldevelopmentofcoffeesectorin thecountrysince1942
Friend, F i d Philosopher Phil h and dGuide G id CommandsHistoric/Traditionalinfluenceinthesector Possesseselaboratemachineryatitsdisposal Organizationoflastresortforthesector

06-03-2012

ICO_Core Group_Meeting

CoffeeBoardofIndia
Postliberalization,theroleofCoffeeBoardisredefinedas

facilitatorofoveralldevelopmentofthecoffeesector through
R&Dandtransferoftechnology, Capacitybuildingofstakeholdersinproduction,processing&value

addition,
Disseminationofinformationincludingmarketinformation, PromotionofIndianCoffeeintheoverseasanddomesticmarket, Providingincentivesfordevelopmentalactivitiesaimedat

productivityandqualityimprovement,riskmitigation,value additionetc.,and Providingwelfaremeasuresforthechildrenofworkers/small growers


06-03-2012 ICO_Core Group_Meeting 3

RiskManagement/FinancialTools availableforcoffeegrowers
Rainfall( (Weatherbased) )InsuranceSchemeforCoffee

(RISC) from2007onwards PriceStabilizationFund(PSF) from2003onwards PersonalAccidentInsuranceScheme(PAIS) from2005 onwards Interestsubvention/Refinanceschemes


By B the th C Coffee ff B Board d ByRBI(CentralBank)throughbankingnetwork ByNABARD BytheStateGovts.coveringCooperativesector

06-03-2012

ICO_Core Group_Meeting

RainfallInsuranceSchemeforcoffee (RISC)
p by yCoffeeBoardandAgriculture g Developed Insurance

Company(AIC)ofIndiaLtd.,inconsultationwithgrowers associations Riskmitigationschemeagainstexcess/deficitrainfall duringcertaincriticalstagesofcropcyclelikeblossom, fruitset,monsoonandharvestperiods. Smallgrowersareentitledfor50%subsidyonthepremium amountpayablefordifferentriskoptions Amountofcoverage Arabica Rs.30,000/ Haand Robusta Rs.20,000/ Ha Majorchangesontheanvilw.e.f.FY201213
ICO_Core Group_Meeting 5

06-03-2012

PriceStabilizationFund(PSF)
Objective j istop providefinancialrelieftothesmallg growerswhen

pricesofthecommodityfallbelowaspecifiedlevel. Growersowningupto4ha.arecoveredunderthescheme EveryyearPriceSpectrumBand(PSB)isdeclaredbasedon7yrs movingaverageoftheInternationalPrices PSBof 40%(+20%to20%) BoomYear whendomesticpriceishigherthantheupperrangeof thePSB(+20%) Normalyear domesticpriceiswithinthePSB Distressyear domesticpriceisbelowthelowerrangeof thePSB (20%) Majorchangesontheanvilw.e.f.FY201213
06-03-2012 ICO_Core Group_Meeting 6

Modalityofdeposits/contributions

Normaly year boththeGovt.&g growercontributeRs. 500/ each Boomyear onlythegrowercontributesRs.1000/ Distressyear onlytheGovt.depositsRs.1000/ Thegrowerscanwithdrawthetotalaccruedamountin hisaccountonlyduringDistressyear A the At h end dof fcurrencyof fthe h scheme h entire i money wouldgotothegrowers

06-03-2012

ICO_Core Group_Meeting

PersonalAccidentInsurance Scheme(PAIS)
Applicable pp tosmallg growers( (upto p 4Ha) )andestateworkers

tocovertherisksofdeath,permanentdisablement,lossof limbsandeyesetc. ImplementedbyGovt.approvedInsurancecompany Coverage


Death&Permanentdisability Rs.100,000/ Lossoflimbs/eyes Rs.60,000/ Rs 60 000/ Temporarydisabilityforlossofworkupto3months Rs.15,000/

Govt.support 50%subsidyonpremiumofRs.22per

person.
06-03-2012 ICO_Core Group_Meeting 8

Interestsubvention/Refinancing schemes
CoffeeBoard 5%interestsubsidyonworkingcapitalloansavailedby growerssubjecttoconditionthat

interestpayableaftersubsidyisnotlessthan7%and maximumceilingofRs.50,000/ peryearforArabicaand Rs.40,000/ peryearforRobustagrowersisnotexceeded

Govt Govt.ofIndia/RBI Contribute@2%forShortTerm(ST)loansupto Rs.300,000totheBanks(bringsdownthecostof capital)


06-03-2012 ICO_Core Group_Meeting 9

Contd
NABARD
RefinancestoRegionalRuralBanks(RRBs)and

[email protected]%forSTloansand10%for mediumterm(MT)&longterm(LT)loans

StateGovernments
InterestsubventiontovariousdegreesforST,MT&LT

loansbydifferentState/provincialGovernments Quitesubstantial

06-03-2012

ICO_Core Group_Meeting

10

RoleoftheCoffeeBoard/Government
g AtFormulationstage
TheBoarddevelopstheschemeswithImplementingagencies Providesconsultativeroleinthedevelopmentofcertainother

schemes
Actsaslinkbetweengrowers/growersassociationsandtheGovt./

Implementingagencies

AtImplementationstage
SICS/IECcampaigns Growersmeets/workshops MassCommunicationProgramme,

MassContactProgrammeetc. DisseminationofinformationthroughBoardswebsite,radio/ newspapers/pamphletsetc.


06-03-2012 ICO_Core Group_Meeting 11

Contd..
Technicalsupport Advisingfinancialinstitutionsontheunitcostsfor workingcapitalloans&termloans Providingtechnical/datainputstotheimplementing agenciesfordevelopmentoftheriskmanagementtools foreg:inthecaseofRISC,Boardprovidinghistoric rainfalldata, data definingrisktriggersetc. etc fordifferent zones Facilitationinmarketingofthetoolsreachingupto marketingbytheBoard
06-03-2012 ICO_Core Group_Meeting 12

Roleofotherplayers
GrowersCooperatives
VeryfewgrowerscooperativesexistinIndiaafter

liberalizationofcoffeemarketingin1996 Roleconfinedtotheirmembers

Growersassociations
provideinputsforthepolicydiscussionsandhelpin

disseminationofinformationamongtheirmembers MostoftenutilizeresourcepersonsfromtheBoard
06-03-2012 ICO_Core Group_Meeting 13

ThankYou

06-03-2012

ICO_Core Group_Meeting

14

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