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Government to help growers expand coffee acreage

March 13, 2015: Farmers in the traditional coffee growing regions in Karnataka, Tamil Nadu and Kerala will now get subsidies to bring in new area under cultivation. The government has decided to subsidise expansion of area under coffee production in the three traditional states. It may be noted here that the move has come after over three decades and these three states account for close to 83 per cent of the total acreage of the 4.15 lakh hectares.

It is interesting to note that while acreage has expanded significantly in non-traditional areas like Andhra Pradesh, Odisha and North East, expansion has been on a slow pace in traditional areas.

The non-traditional areas in Andhra Pradesh and Odisha account for about 15 per cent of the acreage and the North-East about 1.5 per cent.

Coffee Board believes in long-term potential of coffee as consumption has picked up while production has begun to stagnate. According to a survey by the Board, there is ample potential to bring in an additional 18,000 hectares under coffee.

According to the recent move by the government, farmers expanding their acreage by up to two hectares will get 40 per cent of the unit cost as subsidy, while those bringing in new areas of two to ten hectares under coffee will get 30 per cent of the unit cost as subsidy.

According to the recent move by the government, farmers expanding their acreage by up to two hectares will get 40 per cent of the unit cost as subsidy, while those bringing in new areas of two to ten hectares under coffee will get 30 per cent of the unit cost as subsidy.

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