MP Urges Centre to Aid Kodagu Coffee Growers’ Cooperative

Quick Summary

• MP for Mysuru,Yaduveer Krishnadatta Chamaraja Wadiyar,has raised concerns over the financial crisis faced by the Kodagu Coffee Growers’ Cooperative Society.
• The society,established in 1956,supports over 10,000-12,000 small and medium coffee growers in Kodagu,Mysuru,and nearby regions. It provides income security to nearly 40,000 families and employs thousands of workers on estates.
• Factors such as market fluctuations and inadequate capital have led to significant financial losses for the society over the years-₹13.13 crore currently.
• A past debt situation saw them paying ₹1.55 crore in principal but were later charged an additional ₹5.83 crore as interest and penalties by the Coffee Board in 2017.
• Mr. Yaduveer submitted a memorandum to Union Commerce Minister Piyush Goyal during his visit to New Delhi and urged both Commerce and Finance Ministries to intervene with relief measures.
• Without immediate support, bankruptcy could impact one lakh people dependent on this society.

Indian Opinion analysis

The plight of the Kodagu Coffee Growers’ Cooperative Society underscores ongoing challenges in India’s agricultural cooperative model when confronting globalized market pressures combined with bureaucratic inefficiencies-exemplified hear by inconsistent financial penalties from regulatory bodies like the Coffee Board. This cooperative is not merely a business but a lifeline for tens of thousands of individuals across Karnataka who rely on it directly or indirectly for their livelihoods.

Intervention from central authorities could enable systemic improvements while sustaining farmer welfare amid volatile economic conditions affecting agricultural commodities like coffee globally. Timely resolution could also set a precedent for balancing oversight mechanisms without jeopardizing grassroots socio-economic structures that secure rural livelihoods.

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