Lok Sabha Question No. 376 (STARRED), answered on 2016-12-12
Subject: Integrated Coffee Development Project
Ministry: COMMERCE AND INDUSTRY
Asked by: PRATHAP SIMHA

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY

## (DEPARTMENT OF COMMERCE)

## LOK SABHA STARRED QUESTION NO. 376 TO BE ANSWERED ON 12 th  DECEMBER, 2016

## INTEGRATED COFFEE DEVELOPMENT PROJECT

## *376.  SHRI PRATHAP SIMHA:

Will the Minister of COMMERCE & INDUSTRY ( वाͨणÏय एवं उɮयोग मंğी ) be pleased to state:

- (a) the salient features of the Integrated Coffee Development Project (ICDP) being implemented by the Coffee Board along with the funds sanctioned for the project indicating the year in which Coffee Board started receiving funds under ICDP;
- (b) whether the Government has stopped release of subsidy to this Project and is proposing to reduce funds allocation to the Coffee Board and if so, the details thereof and the reasons therefor;
- (c) whether  the  coffee  growers  are  being  given  compensation  for  crop  losses  due  to  erratic rainfall  under  the  Rainfall  Insurance  Scheme  for  Coffee  and  if  so,  the  compensation disbursed under the scheme during the last three years, State/UT-wise;
- (d) whether the Government is contemplating to add green coffee beans to the exempted list in the proposed Goods and Services Tax and if so, the details thereof; and
- (e) whether the Coffee Board was not able to convene Meeting of its Directors for a long time owing to  the  non  appointment  of  a  regular  Chairman  to  the  Board  and  if  so,  the  details thereof along with the steps taken to appoint the Chairman?

## ANSWER

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THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)

- a) to  e):  A Statement is laid on the Table of the House.

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## STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF LOK SABHA STARRED QUESTION NO. 376   FOR ANSWER ON 12 th  DECEMBER, 2016 REGARDING 'INTEGRATED COFFEE DEVELOPMENT PROJECT'

- (a) Integrated  Coffee  Development  Project  (ICDP)  was  envisaged  to  contribute towards  improvement  in  the  production,  productivity  and  quality  of  coffee produced in India, to promote export of coffee in the international market and to increase domestic consumption. The salient features of ICDP are :
- (i)  To extend all round support to the coffee growing sector in terms of development of improved varieties/production technologies.
- (ii)  Effective  transfer  of  technology  from  lab  to  land  through  innovative  extension approaches.
- (iii) Capacity Building of stakeholders to improve their skill and competence in coffee production, processing, quality improvement, marketing etc.
- (iv) To provide  need based  incentives at threshold levels to  encourage  new investments that can  contribute towards improvement of  production,  productivity and quality of coffee produced in the country.
- (v)  Promotion of Indian coffee in the export and domestic market

The implementation guidelines of the scheme were approved on 18.12.2014 with a total outlay of Rs.950 Crores. The funds released for the ICDP project are as under:

(Rs. In crores)

| Year                          |   Funds released |
|-------------------------------|------------------|
| 2014-15                       |            95.51 |
| 2015-16                       |            95.8  |
| 2016-17 (up to November 2016) |            71.05 |

- (b) The fund allocation under any project is subject to availability of budget. The details of subsidy released under the ICDP are as under.

(Rs. In Crores)

| Year                          |   Total |
|-------------------------------|---------|
| 2014-15                       |   47.25 |
| 2015-16                       |   44.8  |
| 2016-17 (up to November 2016) |   39.55 |

(c) Yes, Madam. The coffee growers are being given compensation for crop losses  due  to  erratic  rainfall  under  Rainfall  Insurance  Scheme  for  Coffee (RISC). The compensation disbursed under the scheme during the last three years, State-wise is as under:

| State      | Compensation disbursed under RISC (Amount Rs. lakhs)   | Compensation disbursed under RISC (Amount Rs. lakhs)   | Compensation disbursed under RISC (Amount Rs. lakhs)   |
|------------|--------------------------------------------------------|--------------------------------------------------------|--------------------------------------------------------|
| State      | 2013-14                                                | 2014-15                                                | 2015-16                                                |
| Karnataka  | -                                                      | 15.65                                                  | 36.12                                                  |
| Kerala     | 29.44                                                  | 7.58                                                   | -                                                      |
| Tamil Nadu | 0.70                                                   | -                                                      | -                                                      |
| Total      | 30.14                                                  | 23.23                                                  | 36.12                                                  |

(d) As per Article 279(4) (b) of the Constitution, the Goods and Services Tax Council shall make recommendations to the Union and the States on the goods and services that may  be subjected to, or exempted from the goods and  services  tax.  The  tax  treatment  on  green  coffee  beans  under  the proposed GST regime will therefore, be decided based on the recommendations of the Goods and Services Tax Council.

(e) No,  Madam.    Meeting  of  the  Board  could  not  be  held  due  to  cases pending in High Court of Karnataka.

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