Madikeri: CNC Warns of Grip of Black Money and Counterfeit Currency on Coffee Industry

Madikeri: Codava National Council founder-president Nandineravanda U Nachappa has said that a shadow of black money and counterfeit currency has been hovering over the coffee industry. Hence he has requested the government to direct that all coffee transaction be executed through cheques and demand drafts.

Speaking at a media meet here last week, Nachappa said that some traders had been exploiting the coffee growers on the pretext of ‘out-turn’ – a measure based on the circumference of the beans – and ‘moisture’ of the produce grown by them. They were also responsible for the indiscriminate fluctuations in the prices.

He levelled a serious charge that traders from other states were making a foray in to the district. They kept exploiting the growers who secured the yield in the face of hardships like erratic weather conditions and shortage of labour. They were being given a raw deal at the stage of sale, by taking advantage of free market system prevailing in the coffee sector.

India has been among the top six coffee-producing countries. Kodagu produces 40% of the total national produce. Next to petroleum, coffee is largest industry in the world. But the traders have been controlling the sector by manipulating the prices, feels Nachappa.

Nachappa said that coffee traders kept eagerly waiting during the period between December 15 and January 15. Since the growers, being under the compulsion of repaying their bank borrowings by March, were forced to make heavy compromises on prices.

The Coffee Board has set the specification for out-turn as 25-plus. The minimum out-turn count in Kodagu is of the produce from Ammatti and Balele, which is 25.6 to 26.6, in spite of being comparatively hot areas. Yet, with the maximum out-turn, the produce of the Western Ghats is being regarded as being low in out-turn requirement, according to Nachappa.

He further said that a good number of hulling machinery in the district did not have a clearance from the Pollution Control Board. He demanded that such equipment should not be allowed to operate.

He also also strict monitoring over buyers coming to the district and making all coffee transactions mandatory under real-time gross settlement (RTGS) system. He added that the control of Union ministry of finance and the Reserve Bank of India was necessary in the matter.

A memorandum has been submitted to various Union ministries, the RBI and other agencies.