Development Support for Coffee in Traditional Areas
The Development Support for Coffee in Traditional Areas is a pivotal sub-component of the Integrated Coffee Development Project initiated during the Medium Term Framework (MTF) Period by the Coffee Board under the aegis of the Department of Commerce, Ministry of Commerce and Industry. This scheme aims to bolster small and tiny coffee growers by incentivizing them to form collectives, Self Help Groups (SHGs), or cooperatives. By encouraging a community-based approach to coffee marketing, the scheme endeavors to enhance both the quality of coffee and the value realized by the growers. It serves as a mechanism for better price realization through quality improvement and collective bargaining.
Overview table of Development Support for Coffee in Traditional Areas
| Aspect | Details |
|---|---|
| Scheme Name | Development Support for Coffee in Traditional Areas |
| Initiating Authority | Coffee Board under the Department of Commerce, Ministry of Commerce and Industry |
| Objective | To support small and tiny coffee growers by incentivizing collective marketing, enhancing quality, and improving price realization |
| Benefit | Subsidy of ₹4.00 per kilogram of Clean Coffee for eligible beneficiaries |
| Eligibility Criteria | – Belong to Small Growers’ Collectives, SHGs, or Cooperatives in traditional coffee-growing states – Solely market clean coffee under group name – Not availed duplicate subsidies |
| Application Process | Offline submission of reimbursement claims and subsidy applications to Deputy Director (Extension) and Deputy Director (Market Research) |
| Subsidy Disbursement | Post completion of coffee sales by groups, directly to individual members’ bank accounts via NEFT |
| Required Documents | – Application in prescribed format – Certificate of incorporation/registration – Complete member list/details |
| Additional Documents (Method Dependent) | – For Auction Platform/Commodity Exchange: Registration certificate, Attested sale note – For Direct Export: Export permit, ICO certificate, Bill of Lading |
Benefits
Under this scheme, eligible beneficiaries can avail a subsidy of ₹4.00 per kilogram of Clean Coffee.
Development Support for Coffee in Traditional Areas Eligibility criteria
- Applicants must belong to Small Growers’ Collectives, Self Help Groups (SHGs), or Cooperatives situated in traditional coffee-growing states.
- Engage solely in marketing clean coffee (green bean) under the name of their respective groups, either through recognized public auction platforms like the Indian Coffee Trade Association (ICTA), direct export, or recognized Commodity Exchanges.
- Individuals who have already availed subsidy for a specific activity/component during the Mission for Integrated Development of Horticulture (MIDH) period are not eligible for duplicate subsidies unless new beneficiaries are included.
Development Support for Coffee in Traditional Areas Application Process
Offline application process:
Step 1: After coffee marketing, the respective groups must furnish reimbursement claims along with requisite documents.
Step 2: Submit subsidy applications to the Deputy Director (Extension) within the same financial year of completing the activity.
Step 3: Scrutiny and forwarding of applications to the Deputy Director (Market Research) at Coffee Board, Head Office, Bengaluru for approval.
Disbursement of Subsidy
Subsidies are disbursed only post the completion of coffee sales by the respective groups. Payments are made directly to individual members’ bank accounts through National Electronic Funds Transfer (NEFT), provided applications are complete.
Documents Required
- Application in prescribed format (Duplicate).
- Certificate of incorporation/registration as Growers’ Collective/SHG/Cooperative.
- Complete member list/details.
- Member-wise coffee sales details.
- Certificate from Growers’ Collective/SHG/Cooperative verifying membership.
- Certificate from state Government commercial tax department (VAT registration certificate) where applicable.
Additional Documents (based on coffee marketing method):
A. For Auction Platform/Commodity Exchange:
- Registration certificate as ICTA member or other recognized marketing auction platforms.
- Attested copy of sale note issued by auctioneers.
B. For Direct Export:
- Export permit with Customs endorsement.
- ICO certificate of origin with customs endorsement.
- Bill of Lading (BL).
Conclusion
The Development Support for Coffee in Traditional Areas scheme stands as a beacon of support for small coffee growers, fostering collectivism and ensuring better returns for their produce. By streamlining the application process and providing detailed guidelines, the scheme aims to empower growers and strengthen the coffee industry at large.
Frequently Asked Questions
Ans: It’s a component of the Integrated Coffee Development Project by the Coffee Board, supporting small coffee growers by promoting collectives and enhancing coffee quality and value.
Ans: Eligible beneficiaries can receive a subsidy of ₹4.00 per kilogram of Clean Coffee.
Ans: Small Growers’ Collectives, Self Help Groups (SHGs), or Cooperatives in traditional coffee-growing states, solely marketing clean coffee through recognized platforms are eligible.
Ans: Groups must submit reimbursement claims after marketing coffee, then apply for subsidy to the Deputy Director within the financial year. Applications are forwarded for approval.
Ans: Subsidies are disbursed post coffee sales completion, directly to members’ bank accounts via NEFT. Required documents include application forms, certificates of incorporation, sales details, and relevant marketing method documents.
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