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    Forum 2 Akhtar e

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    Aniket Pallav
    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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    Forum 2 Akhtar e

    Uploaded by

    Aniket Pallav
    30 views7 pages
    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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    Forum 2 Akhtar e

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    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.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    30 views7 pages

    Forum 2 Akhtar e

    Uploaded by

    Aniket Pallav
    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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    of 7

    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

    Cooperativesector@4.5%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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