CHAPTER III

COFFEE BELT OF KARNATAKA AND THE COFFEE BOARD

Coffee is grown in three districts of Karnataka- Kodagu, Chickmagalore and

Hassan. The geographic, demographic, economic, social and cultural profiles of these
three districts are discussed in this chapter. An attempt is also made to focus on the
coffee board activities in promoting coffee cultivation.

HASSAN DISTRICT

Located southern eastern part of Karnataka, Hassan is a rich producer of

spices and condiments. It is well known for its tourist spots and coffee estates. The
district is located 200 km away from the state capital Bengaluru. Hassan was a seat of
the Hoysala Empire, ruled from Belur. The district is known for its Hoysala
architecture. Hassan is also known for the location of the Master Control facility of
the Indian Space Research Organisations Indian National Satillite system. The
general level of Hassan district is its slopes with the course of Hemavathy River from

84
Western Ghats range towards the bed of the Kavery River near Hampapura in the
southe east and its tributary, the Yagachi River.

The district is surrounded by Chickmagalore district to the North West,

Chitradurga district to the north, Tumkur district to the east, Mandya district to the
south east, Mysore to the south, Kodagu district to the south west and Dakshina
Kannada district to the west.

LOCATION OF THE DISTRICT

MAP 3.1
HASSAN DISTRICT

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 The district is divided into 8 talukas, Alur, Arakalagud, Arasikere, Belur,
Channarayapatna, Hassan, Holenarasipura and Sakleshpura. Hassan is the district
head quarters. It has 258 panchayat villages. The district has an area of 6826 sq km
and comprises hilly, southern transitional, southern dry and central dry zones. It is
situated 2618ft above the sea level and the temperature is 350 max and 200 min. The
average rainfall received by the district is 1031mm. It is located 75 33 and 76 38
east longitude. The population as per 2001 census is 20.21 lakh and the literacy rate is
51 percent.

The district is connected by Mangalore port by sea which is 174 km from the
district head quarters, and Bangalore air port, 200 km and Mangalore air port by air.
Power generation is handled by NTPC, KPCL etc and the supply is handled by the
Chamundeshwari Electricity Supply Corporation. The district has 2998 primary
schools, 508 high schools, 149 junior colleges, 5 engineering colleges, 2 medical
colleges, 3 polytechnics and 15 general colleges.

Sri S L Bhyrappa (kannada novelist), Gorur Rmaswamy Iyengar (kannada

novelist), Raja Rao (English writer, Padma vibhushan and Padma Bhushan),
H.D.Devegowda(former prime minister), H.D.Kumaraswamy (former Chief minister),
Javagal Srinath (farmer Indian Cricketer), Ashwath and Doddanna (filmstars), Shruthi
(film actress) etc are some of the famous personalities of the district.

Hassan is largely agrarian community with a charm that is essentially similar

to that of Mysore district. It has got red loamy and black soil.

86
Industries and agriculture of the district at a glance

TABLE 3.1
PUBLIC INVESTMENT IN THE DISTRICT

Nature Amount ( Millions)

Industries 726

Social forestry 176

Horticulture 1491
Cooperatives 424.6

Animal husbandry 2037

Watershed development 894

Agriculture 800.7

Source: Eleventh five year plan out lay 2007-08 to 2011-12

TABLE 3.2
INDUSTRIES

Number of factories 78

Number of MSME units 10883

Number of MSME workers 47307

Investments in MSME 1975 millions

Number of industrial estates 16

SPECIAL ECONOMIC ZONES

Textile SEZ
Food processing SEZ
Pharma SEZ
Electronic Hardware SEZ

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CLUSTERS

Coir and Coir products cluster is in Arasikere taluka.

DIFFERENT INDUSTRIES

Food processing
Tourism
Coffee estates pharma and electrical based

PROMINENT SECTORS

Food processing
Tourism and textile
dairy based units
Electronic and hard ware
IT and ITES

AGRICULTURE PROFILE

Hassan district has varied agro climatic zones. Bimodal rainfall pattern in
major parts of the district helps in growing short and long duration crops and also for
adopting multiple cropping patterns.

Major agricultural crops

Cereals
Pulses
Oil seeds
Commercial crops like cotton, sugarcane and tobacco.

Horticulture crops

Plantation- coconut, areca nut, cocoa, oil palm, coffee.

Spices- black pepper, ginger, cardamom, vanilla.
Vegetables- tomato, chilly, brinjal, cole crops.
Flowers- jasmine, chrysanthemum, mari gold, rose.fruits- banana, mango,
lemon, sapota.

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 Medicinal plants- patchouli, Amla.

TABLE 3.3
AGRICULTURAL COVERAGE

Type of crop Area in hectares

Cereals 108788

Food grains 213827

Vegetables 49353

Non food crops 139571

Source: Hassan district profile

COFFEE IN HASSAN

Coffee is grown only in Malnad areas of Sakleshpur Taluka.

TABLE 3.4
NUMBER OF HOLDINGS IN THE DISTRICT

Year Number of Total increase % increase

holdings
2008-09 10616 _ _
2009-10 10724 108 1.007
2010-11 10851 127 1.180
2011-12 11021 170 1.566
2012-13 11578 557 5.053
Source: Data base on coffee

The table makes it clear that even though there is an increase in the number of
holdings, it is not so encouraging. The percentage increase is very minimal compared
to the contribution for the exports of the country. It makes it clear that only the
traditional coffee growers who cannot shift from coffee immediately are continuing
with the cultivation and the interest towards it among the new is very less.

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 TABLE 3.5
PLANTED AREA (IN HECTARES)

Year Arabica Robusta Total %change

2008-09 24475 10540 35015 _
2009-10 24225 10890 35115 0.286
2010-11 23875 11650 35525 1.167
2011-12 24075 11950 36025 1.407
2012-13 24140 12435 36575 1.526
Source: Data base on coffee

With relation to the planted area under coffee in the district is not very
encouraging. The increase is very minimal.

TABLE 3.6
PRODUCTION OF COFFEE (IN MTS)

Year Arabica Robusta Total %change

2008-09 12686 7450 20136 _
2009-10 13296 9550 22846 13.458
2010-11 17080 11650 28730 25.75
2011-12 18725 12250 30975 7.81
2012-13 18800 13800 32600 5.246
2013-14# 21435 14700 36135 10.840
Source: Data base on Coffee
#Provisional

There is an increase in the production of both the varieties, Arabica and

Robusta over the years. But a mere 5 percent increase may not be sufficient to take
care of the increasing cost of production. It may still leave the growers in distress.

CREDIT FLOW

There are 17 banks with their branches which provide finance to coffee
cultivation along with the Hassan District Central Cooperative bank. Canara bank is
performing the task of lead bank in the district.

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 The total ground level credit flow under priority sector during 2011-12 was Rs
1742.83 crore surpassing the district credit plan target by 48.84 crore. The total
growth rate in GLC during 2011-12 was 57.7 percent compared to 6 percent in 2010-
11. The overall GLC under primary sector was Rs 1226.42 crore accounting for 70.4
percent of the total GLC in 2011-12. The projections assessed for the year 2013-14
under priority sector is Rs. 2527.48 crore. The projections under broad sectors are:
crop production, maintenance and marketing-Rs.1303.23 crore, term loan for
agriculture- Rs.422.67 crore, MSME (including food and agro processing) Rs.101.86
crore.

CHIKMAGALUR DISTRICT

Coffee was first cultivated in India in Chikmagalur. The mountains in

Chikmagalur which are part of Western Ghats are the source of rivers like Tunga and
Bhadra. Mullayanagiri, the highest peak in Karnataka is located in the district.
Literally, chikmagalur means the town of the younger daughter in Kannada. There
is a town called Hiremagalur, the town of the elder daughter about 5 km from
Chikmagalur. Coffee was introduced to India through Chikmagalur district when the
first coffee crop was grown in the Baba Budan Giri hills. The district is related to the
former Indian Prime Minister Mrs. Indira Gandhi as she got elected to Lok Sabha
from Chikmagalur in 1978.

91
 The district head quarter Chikmagalur is 251 km from the state HQ and is
surrounded by the Chandra Dronha hills and dense forests. It is situated between 120
54 42 and 130 53 53 north latitude and between 750 04 46 and 760 21 50 east
longitude. The district has 6 talukas, Chikmagalur, Kadur, Mudigere, Shringeri,
Koppa and Narasimharajapura. The district has an area of 720km2 with the population
of 1,137,753 (2011census) and a population density of 158/km2. The official language
of the district is Kannada.

The district is also a tourist's paradise containing hill stations like

Kemmanagundi and Kudremukh and waterfalls like Manikyadhara, Hebbe,
kallathigiri. Chikkamagaluru district has a rich history as is seen in the
Hoysala temple at Amrithapura. Wildlife enthusiasts would be interested in
the Kudremukh National Park and Bhadra Wildlife Sanctuary.

The district receives normal average rainfall of 1925 mm. The highest point in
this district is Mullayanagiri, 1926 mts. above sea level which is also the highest point
in the state of Karnataka. 30% of the district (2108.62 km) is covered with forests.
The district borders Shimoga district to the north, Davangere district to the north-
east, Chitradurga and Tumkur districts to the east, Hassan district to the
south, Dakshina Kannada district to the south-west and Udupi district to the west. The
rivers Bhadra, Tunga, Hemavathi, Netravati, and Vedavathi flow all year round. The
district is rich in iron, magnetite and granite deposits. Black soil is found around Baba
Budan Giri Hills whereas Red and Gravel soil are found in the southern parts of the
district.

Chikkamagalur district gets its name from its headquarters

of Chikkamagaluru town. It is alternatively spelt as Chickmagalur or Chikmagalur.

92
 LOCATION OF THE DISTRICT

MAP 3.2
CHICKMAGALUR DISTRICT

Chikkamagaluru district has not made good progress in terms of Industrial

Development. Inadequate infrastructure, poor roads, poor rail network and investors
preferring non-industrial ventures over industrial ones are quoted as some of the
reasons for the backwardness of Industrial Development in this district.

There is only one Large Scale industry in this district, i.e.

M/s Kudremukh Iron Ore Company Ltd. (KIOCL) in Kudremukh area
of Mudigere Taluk. KIOCL was established in 1976 to develop the Kudremukh mine

93
and to produce 7.5 million tonnes of concentrate per year. The facilities were
commissioned in 1980 and the first shipment of concentrate was made in October
1981. A pelletisation plant with a capacity of 3 million tonnes per year was
commissioned in 1987 for production of high quality blast furnace and direct
reduction grade pellets for export. KIOCL received a massive setback when its
mining license expired and operations were stopped by the Supreme Court with effect
from 31 Dec, 2005. With many of the employees losing their jobs and the social
backlash that may result thereof, efforts are being made to generate jobs for these
workers in other areas. There is only one Medium Scale Industry, i.e. M/s Vignyan
Industries Ltd. located in Tarikere town. A subsidiary of BEML, it produces steel
castings.

There are 2 Industrial Estates in Chikkamagaluru district, one located near

Chikkamagaluru town and the other near Birur in Kadur Taluk. The Chikkamagaluru
Industrial Estate is spread over 13.20 acres (53,400 m2) of land where the one at Birur
is spread over 11.1 acres (45,000 m2). Karnataka Industrial Area Development Board
(KIADB) is also developing an Industrial Area of over 145 acres (0.59 km2) near
Amble village of Chikkamagaluru Taluk.

There are 1620 primary schools, 135 secondary schools, 46 pre university
colleges, 13 degree colleges, I engineering college, 3 polytechnics, 7 industrial
training institutions, 1 Ayurvedic medicine and surgery college in the district. The
literacy rate is 79.28 percent.

National high way NH-13 (Sholapur-Mangalore) and NH-206 (Bangalore-

Honnayar) passes through the district. The total length of railway line passing through
the district is 91km. the district has a small airport suitable for small Charted planes.
The other nearest airports are, Mangalore, Bangalore and Hubli. Sringeri, Horanadu,
Kalasa, Bababudangiri, Amritapura, Belavadi, Narasimharajapura are the famous
temple towns.

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 TABLE 3.7
INDUSTRY PROFILE OF THE DISTRICT

Number of factories 395

Number of MSME Units 7865
Number of MSME workers 32355
Investments in MSME 1261 millions
Source: District profile.

TABLE 3.8
AGRICULTURE PROFILE

Area under agriculture 1.79 lakh hectares

Percentage of irrigated area 12 percent of the total
Average farm size 0.53 hectares
Cropping intensity 109 percent
Crops: Ragi, Paddy, Maize, Jowar, Sunflower, Groundnut, Cotton, Sugarcane.

Source: District profile.

TABLE 3.9
HORTICULTURE PROFILE

Type Crops Percentage

Plantation Coffee, Coconut, Areca nut 64
Spices Pepper, Cardamom, Ginger 12
Vegetables Potato, Chilli, Tomato 10
Flowers Rose, Anthuriums, 02
Chrysanthemum, Marigold
Fruits Banana, Mango, Mandrins, 12
Sapota
TOTAL 100
Source: District profile.

There are 20 banks working in the district with a total of 198 branches,
continuously striving hard to improve the economic conditions of the people by
providing timely and adequate credit. The banks operating in the district are, Bank of
Baroda, Bank of India, Canara Bank, Corporation Bank, Indian Bank, Indian

95
Overseas Bank, Karnataka Bank, State Bank of India, State Bank of Mysore,
Syndicate Bank, Vijaya Bank, ING Vysya Bank, Federal Bank, Union Bank, UCO
Bank, CKGB, CDCCB, KASCARD, Axis Bank, ICICI, IDBI and KSFC.

Corporation bank is the lead bank of the district.

COFFEE DATA

TABLE 3.10
NUMBER OF HOLDINGS

Year Number of holdings Total increase % increase

2008-09 15828 _ _
2009-10 15833 003 0.019
2010-11 15833 _ _
2011-12 16381 548 3.461
2012-13 16019 -362 -2.209
Source: Data base on coffee

The above table makes it clear that the increase in the number of holdings is
minimal in the years 2009 and 2011 and it has reduced to a greater extent in the year
2012-13 which indicates that the lack of interest in coffee growing in the recent years.

TABLE 3.11
PLANTED AREA (IN HECTARES)

Year Arabica Robusta Total %change

2008-09 56995 31565 88560

2009-10 56995 31650 88560
2010-11 56995 31650 88645 0.095
2011-12 57000 31853 88853 0.234
2012-13 56900 31968 88868 0.016
Source: Data base on coffee.
The table shows that the increase in the area of plantation is very minimal and
in the case of Arabica variety, it is negative. It is due to the high maintenance cost and
the diseases to which the plants are very much prone, growers are slowly shifting to
Robusta variety.

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 TABLE 3.12
PRODUCTION OF COFFEE (IN MTS)

Year Arabica Robusta Total %change

2008-09 31910 29180 61090

2009-10 36460 33335 69795 14.249

2011-12 41180 37100 78280 12.157

2012-13 37325 40300 77625 -0.836

2013-14* 41200 37360 78560 1.204

Source: Data base on coffee.

*Provisional
Even though the total production is increasing till 2011-12, the percentage
increase is decreasing. This has led to a negative change in the year 2012-13. Even in
the current year it may continue to be negative because the given figures are only
approximate and not eh actual one. That is the reason why even the productivity is
falling resulting in a revenue loss to the growers.

97
 KODAGU DISTRICT

MAP 3.3
KODAGU DISTRICT

Well known in the world of coffee and its brave warriors, Kodagu district
belongs to Malnad region of Mysore Division. It is formerly called by an anglicized
name Coorg. Madikeri is the head quarter of the district and it has three talukas for
administrative purpose. Madikeri, Virajpet and Somwarpet are the talukas and
Virajpet is the largest taluk consisting of towns like Virajpet, Gonicoppal, Siddapur,
Ponnampet, Ammathi and Thithimathi. The total area of the district is 4102 km2. The
district is bordered by Dakshins Kannada District to the North West, Hassan to the
North, Mysore to the East, Kannur district of Kerala to the South West and Wayanad
district of Kerala to the South. The district has a Tropical wet climate having an
average summer temperature of 28.60c and winter temperature of 14.20c. It is hilly
district with the lowest elevation about 3000 ft above the sea level and the highest
peak Thadiyandamolu is 5740ft above the sea level. The main river in Kodagu is
Kavery (Cauvery) which takes its birth at Talakavery located on the eastern side of
the Western Ghats. The yearly rainfall exceeds 4000 millimeters in some of the areas.

98
 Madikeri is well connected by road with Mangalore, Hassan, Mysore,
Bangalore and Kannur, Thalassery, and Wayanad of neighboring state Kerala. There
are three Ghat roads to reaching Kodagu from coastal regions of Kerala and
Karnataka: the SampajeMadikeri Ghat road from Mangalore, the Panathur
Bhagamandala Ghat road from Kasaragod, Kanhangad, Malom and chittarikkal and
the MakuttaPerumbadi/Virajpet Ghat road from Kannur and Thalassery.

The nearest railway stations are Thalassery and Kannur in Kerala and
Mangalore, Mysore and Hassan are the nearest in Karnataka. The nearest airports are
at Mysore and Mangalore. Mysore airport is at a distance of 130 km from Madikeri
and 115 kilometres from Virajpet. Mangalore International Airport is located 140
kilometers from Madikeri and 172 kilometers from Virajpet. The nearest seaport for
Kodagu is New Mangalore Port at Panambur in Mangalore, 145 kilometres from
Madikeri.

The population of Kodagu as per 2011 census is 5,54,762 and the density is
135 per square kilometer. The population has grown over the decade 2001-2011 was
1.13 percent. The sex ratio is 1019 female for every 1000 men. Kodagu also has a
Tibetian Buddist refugee Camp at Kushalnagar. The official language of the district is
Kannada and the other prominent languages are Kodava, Are bashe, Maleyalam and
Tulu. The literacy rate of the district is 82.52 percent.

Kodagu has three wild life sanctuaries, Brahmagiri, Talakavery and Pushpagiri
and one National Park- Nagarahole National Park also known as Rajiv Ganghi
National Park. The important tourist attractions are: Talakaveri (the birth place of
river Kavery), Nisargadhama(island and picnic spot), Iruppu falls (Laxmana Thirtha
river), Abbey falls(scienic waterfall), Dubare (Elephant training camp), Nagarahole
(National Wildlife Park), Bhagamandala (confluence of three rivers), Mallahalli falls
(Pushpagiri hills), Buddhist Golden Temple (Bylakuppe) etc.

There are 692 Pre Primary schools, 208 lower primary schools, 282 upper
primary schools, 114 high schools, 11 PU colleges, 12 degree colleges, 01 nursing
college, 01 engineering college, 01 dental and 01 forestry college working in the
district.

99
Kodagu culture

The Kodavas are the native ethnic group and were the free holder farmers.
They are also known as Kshathriyas. They speak Kodava Language. Despite being the
brave warriors and members of the Indian warrior caste, Kodagu did not have
indigenous rulers and they were ruled by outsiders for a long time. Kodavas are the
ancestor worshippers and follow martial tradition. They even worship nature and
arms. Lord Igguthappa and Mother Kavery are the main deities of Kodavas and other
deities are Bhadrakali, Subramanya and Ayyappa.

Kail Podhu (weapon Pooja), Kavery Sankramana(pooja of Mother Kaveri) and

Puttari (pooja of new rice) are the important festivals celebrated in the district. The
district has hosted the 80th Kannada Sahithya Sammelana in a grand scale from 07-01-
2014 to 09-01-2014 at Madikeri.

Field Marshal K.M.Cariappa, General K.S.Thimmaiah, C.B.Muthamma (first

woman IFS officer), Prema Cariappa ( Rajya Sabha MP), Prema, Jai Jagadish, Nidhi
Subbaiah(sandalwood), Biddu Appaiah (music composer), Arjun Halappa (hockey
player). Ashwini Nachappa(1998 Arjun Awardee), Joshna Chinnappa (squash player),
Robin Uthappa(International cricket player), Rohan Bopanna (Tennis player),
Ashwini Ponnappa (Badminton player), Jagath and Anitha Nanjappa(former national
rally champions), C.G.Somaiah (Comptroler and Auditor General of India 1990-96),
Guddemane Appaiah Gowda (first freedom fighter 1834-37), Ponnamma (hockey
player) are some of the notable personalities of the district.

Agriculture is the main activity which upholds the economy of Kodagu.

Historically paddy was the main crop grown in Kodagu, later coffee became
prominent with pepper agro forestry. Coffee revenue has helped Kodagu to become
one of the richest districts in India. Both the varieties of coffee, Arabica and Robusta
are grown in the district. The coffee agro forestry is one of the richest agro forests in
the world with about 270 species of shade trees. Black pepper, cardamom, vanilla,
orange are also grown in the coffee estates. Kodagu oranges are known for its
distinctive taste and shrunken nature. Kodagu is also known for its forest honey.

Kodagu is a rural region with most of the economy based

on agriculture, plantations and forestry, as well as one of the more prosperous parts

100
of Karnataka. This is primarily due to coffee production and other plantation
crops. Rice and other crops are cultivated in the valleys. Coffee plantations, situated
on hillsides too steep for growing rice, and taking advantage of shade from existing
forests, became characteristic of the district in the 20th century. Coffee is now a major
cash crop. Coffee processing is also becoming a major economic contributor. In
recent years tourism has also begun to play a role in the economy. Eco-tourism, such
as walking and trekking tours, take advantage of plantation buildings converted into
guest-houses.

101
 TABLE 3.13
LIST OF BANKS OPERATING IN KODAGU DISTRICT

Name of the bank Number of branches

2009 2010 2011
Canara Bank 23 23 23
Vijaya Bank 19 19 19
Corporation Bank 16 16 17
Karnataka Bank 08 08 08
Syndicate Bank 08 08 08
State Bank of India 04 04 07
State Bank of Mysore 06 06 06
Union Bank of India 02 02 02
Central Bank of India 01 01 01
Indian Overseas Bank 02 02 03
ICICI Bank 02 02 02
SBT 01 01 01
CKG 18 18 18
Indian Bank 02 02 02
SIB 01 01 01
ING Vysya 01 01 01
KSCA & RD 03 03 03
KDCC 13 13 13
Bank of India 01 01 01
KSFC 01 01 01
Axis Bank 00 01 01
PNB 00 00 01
BOM Maharashtra 00 00 01
HDFC Ltd 00 00 01
IDBI 00 00 01
TOTAL 126 133 142
Source: District credit plan for different years.

By examining the number of bank and branch network in the district, it

becomes clear that there is not much increase either in the number of banks and the
102
numbers of branches have not changed at all except in the case of three banks over
three years. Only five banks have added in the recent three years.

LEAD BANK OF THE DISTRICT

Corporation bank is acting as the lead Bank of the district. One of the
important tasks of the lead bank is to ensure a balanced flow of credit to all the areas
of development so as to benefit all the sections of the society. The lead bank prepares
the credit plans for every year taking into account the growth potential available,
critical constraining factors, area specific advantages or problems etc. as usual,
agriculture is given special focus in the plan because the district is mainly agri-based.

Credit plan for the district for 2012-13

The total plan has arrived at Rs 1812 crore, which is more by 285 crore than
the previous year. The distribution for different activities is as under.

TABLE 3.14
CREDIT PLAN FOR 2012-13

Sectors Amount (in crores) Percentage

Priority 1637 90.34
Agriculture 1375 83.99
SSIs 33 02.01
Trade and Services 229 14.00
Non Priority 175 9.66
TOTAL 1812 100
Source: District credit plan 2012-13

Priority sector receives the top priority with 90.34 percent of the total
allotment whereas the non priority sector receives only 9.66 percent. Within the
priority sector, agriculture receives 83.99 percent allocation.

103
 TABLE 3.15
COMPARISION OF THE OUTSTANDING LOANS
(PERCENTAGE INCREASE/DECREASE)

Particulars KDCC LDB CKG CBs TOTAL

2010 over 2009 28.62 -94.88 19.53 11.75 13.34

2011 over 2010 8.00 2.00 4.00 -12.00 -9.00

% of agri- 79 100 37 57 70
advances to
total advances
Source: District credit plan 2012-13.

The total amount of loans given by the banks is decreasing over the years and
it has become negative. It can be made more clear from the following table of the
comparison ratio between the deposits v/s advances.

104
 TABLE 3.16
DEPOSITS V/S ADVANCES FOR THE YEAR 2012-13

Institution Deposits (as on Advances (as on Percentage

31.12.12 in 31.12.12 in crores
crores)
SBI 283.05 142.58 50.37
SBM 278.70 110.20 39.54
SBT 16.23 9.10 56.07
CKG 111.28 57.47 51.65
Canara Bank 465.12 418.79 90.04
Indian Bank 26.73 21.74 81.33
IOB 41.26 34.72 84.15
CBI 4.15 11.00 265.06
UBI 26.57 19.00 71.51
Syndicate 116.00 99.93 86.15
Corporation 479.73 232.44 48.45

Karnataka Bank 254.80 72.78 28.56

SIB 12.50 20.73 165.84
Vijaya Bank 269.45 133.31 49.47
Ing Vyasya 10.14 0.47 4.63
ICICI 17.95 13.07 72.81
KSCA & RD 0.84 0.65 77.38
KDCC 306.54 347.12 113.24
BOI 4.53 6.19 136.64
BOM 3.34 0.75 22.45
Source: district credit plan- kodagu district 2013-14

Except in the case of four banks, the percentage of loans granted compared to
their deposits is less than fifty. It clearly indicates that the attempts made by the banks
are not satisfactory or there is lack of financial literacy among the borrowers.

105
COFFEE IN KODAGU

TABLE 3.17
NUMBER OF HOLDINGS

Year Number of holdings Total Total % increase

increase
Madikeri Virajpet
2008-09 20025 20911 40936 _ _
2009-10 20025 21390 41415 479 1.170
2010-11 20025 21390 41415 _ _
2011-12 20658 21536 42194 779 1.881
2012-13 20658 23117 43775 1581 3.747
Source: Data base on coffee.

The number of holdings over the years is increasing but at a very small
proportion. The rate of increase is not at all encouraging.

TABLE 3.18
PLANTED AREA (IN HECTARES)

Year Arabica Robusta Total %change

2008-09 28828 74497 103325 _

2009-10 28803 74777 103580 0.247

2010-11 28303 75277 103580 _

2011-12 28053 76727 104780 1.158

2012-13 27963 76927 104890 0.105

Source: Data base on coffee.

Even if the number of holding is increasing, the planted area is not increasing
accordingly. The percentage rate of growth is lesser than the number of holdings. This
indicates the amount of diversification from coffee in the district.

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 TABLE 3.19
PRODUCTION OF COFFEE (IN MTs)

Year Arabica Robusta Total %change

2008-09 19405 86975 106380 _

2009-10 21585 90585 112170 5.443

2010-11 20940 88600 109540 -2.345

2011-12 22150 96125 118275 7.974

2012-13 21300 98700 120000 1.458

2013-14* 24100 110520 134420 12.017

Source: Data base on coffee.

*Provisional

The production of coffee in the district is showing a negative tendency leading

to decrease in the productivity also. The reasons for this decreasing production may
be many, which require a serious consideration both from the growers as well as the
government.

COFFEE BOARD

The Coffee Board is a statutory body constituted under Central Enactment

Coffee Act, 1942 under the control of Ministry of Commerce, Government of India.
The Chairman, Coffee Board is the chief executive officer of Coffee Board appointed
by Government of India. The members of Coffee Board are appointed by
Government of India and Coffee Board, function under statutory committee. The
head office is at Bangalore.
The function of Coffee Board is as follows.
o Marketing of Indian coffee through a common pool in India and
abroad (The compulsory pooling is abolished from 1994-95 onwards and
coffee trade is liberalised).
o Promoting the consumption of Indian coffee in India and abroad.
o Promoting Agricultural and technological research in the interest of
coffee industry.

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 o Securing better working conditions and the provision and improvement
of amenities and incentives for workers.
o Assisting the coffee growers for Development of their estates

The Board comprises of 33 members including the Chairman, who is the Chief
Executive. The remaining 32 Members representing the various interests are
appointed as per provisions under Section 4(2) of the Coffee Act.

The Board is engaged in research, development, extension, quality upgrade,

market information, and domestic and international promotion of Indian coffee. Since
2002, the Coffee Board has been conducting the India International Coffee Festival, a
biennial event held in India, in collaboration with other stakeholders in the coffee
sector.

COFFEE RESEARCH

The Coffee Experimental Farm established near Balehonnur by Government

of Mysore was taken over by Coffee Board in 1946 and Christened as Central Coffee
Research Institute (CCRI). The CCRI is the premier Research Station in South-east
Asia. CCRI is conducting fundamental research in the field of Botany, Agronomy,
Plant pathology, Entomology, Hematology, plant physiology, Agricultural
Engineering and Bio-technology. CCRI has released 12 variety of Arabica and 3
variety of Robusta for cultivation which occupies nearly 85% of total planted area in
the country. CCRI has also developed a package practice for improved production,
productivity or Quality.

EXTENSION WING

The Extension service in coffee has commenced from 1948 aimed at transfer
of Technology. In Chikmagalur district Extension services has commenced during
1950s. The present extension set up is headed by a Deputy Director (Extn.) at
Chikmagalur and with office of the Senior Liaison Officers and Junior Liaison
Officers in different sub zones. Extension wing is engaged in inculcating the
improved agronomic practices in coffee cultivation. It has also operated several
development loan schemes and now operating several useful programmes under plan

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scheme. The Extension wing is now concentrating to improve productivity, quality
of coffee production of specialty coffee and organic farming.

TABLE 3.20
DIFFERENT SUPPORT SCHEMES TO GROWERS BY THE COFFEE
BOARD
FROM 2007 TO 2011-12

Development Support for Target Achievements

Coffee
Re-plantation (ha) 17500 21593
Water augmentation (Nos) 8300 9781
Quality up gradation (Nos) 9000 12403
Pollution abatement (Nos) 50 4
Risk management to
coffee growers
No. of small growers 110460 56671
proposed to cover
Total area proposed to 198600 93248
cover
Support for coffee
processing
Setting up of coffee 150 88
processing units (Nos)
Support for
mechanization of farm
operations
No. of machineries 21500 19944
Source: Coffee Board, Bangalore

There are certain machineries provided to the coffee growers with subsidy to
the coffee growers which may help them in cutting down the cost of labour.

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 TABLE 3.21
MACHINERIES ELIGIBLE FOR SUBSIDY BY THE BOARD

Machines Eligibility
Weed/brush cutter 1 up to 4 Ha
Telescope pruner 1 up to 4 Ha
Pit digger 1 up to 2o Ha
Sprayers 1 up to 4 Ha
Harvester 1 up to 2 Ha
Power chain saw 1 up to 10 Ha
Green cherry separator 1 up to 10 Ha
Power tiller with/without 1 per 2 Ha and above
trailer
Mini tractor 1 per 4 Ha and above
Mini transporter 1 per 4 Ha and above
Source: Coffee Board Bangalore.

The amount of subsidy provided by the board differs with the size of land
holdings and also the nature of beneficiary. The following table provides the extent of
subsidy available for different categories.

TABLE 3.22
SUPPORT FOR MECHANIZATION OF COFFEE ESTATE OPERATIONS

Area Eligibility

Up to 20 hectares 50 percent to max 2 lakhs

More than 20 hectares 25 percent max 4.5 lakhs

SHGs/ collectives of small farmers 50 percent max 5 lakhs

Source: Coffee Board, Bangalore.

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