Coffee cherry at a coffee plantation in Chikkamagaluru district in Karnataka.
Various coffee planters’ associations in Karnataka on Thursday urged all banking institutions in the country to heed the parliamentary clarification and refrain from invoking the SARFAESI Act on coffee plantation lands for loan recoveries.
During the parliamentary session on Tuesday (December 3), Kota Srinivas Poojary, MP from the Udupi-Chikkamagaluru constituency, raised a question regarding the applicability of the SARFAESI Act (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest) to coffee plantations.
“The government’s response unequivocally clarified that coffee crops were not within the scope of this act, providing legal protection for our growers,” said office bearers of Karnataka Growers Federation and Kodagu Planters Association.
A. Nanda Belliappa, Chairman, Coorg Planters Association, said, “Since 2018, banks have increasingly relied on the SARFAESI Act for loan recoveries, bypassing the Debt Recovery Tribunal (DRT).”
This practice has placed an undue burden on the plantation sector, already struggling with severe natural disasters, continuous crop failures, and low commodity prices. Under this stringent legislation, the use of the SARFAESI has resulted in the loss of properties of many growers, he said.
Vishwanath K.K, vice-president, Karnataka Growers Federation, said, “The government’s clarification, though delayed, was crucial for the welfare of the plantation community.”
We urge all banking institutions to refrain from invoking the SARFAESI on coffee plantation lands for loan recoveries. And it is essential for maintaining the financial stability of coffee growers and the overall health of the coffee sector, he added.
Published – December 05, 2024 10:50 pm IST
