Chikkamagaluru: In a significant move to support distressed coffee planters in Chikkamagaluru, Udupi-Chikkamagaluru MP Kota Srinivas Poojari has urged nationalized banks to suspend the online auction of estates and lands belonging to defaulting planters as a temporary measure to recover bad loans. Many coffee growers in the region are under pressure from financial institutions to repay outstanding loans, prompting the need for intervention.
Agricultural loans have been provided to farmers and coffee growers in Chikkamagaluru, Hassan, and Kodagu districts through Kisan Credit Cards (KCC). However, due to loan defaults, banks have issued notices under the SARFAESI Act, threatening to auction off homes and properties pledged as collateral. Poojari has directed Deputy Commissioner Meena Nagaraj and Lead Bank Manager Suresh to indefinitely halt these online auctions.
The MP has already held discussions with district officials and representatives from nationalized banks to address the issue. Coffee growers have expressed that adverse climatic conditions over the years have severely impacted coffee yields, leading to significant financial losses. Recently, a group of coffee planters staged a protest against a bank in Mangaluru for allegedly pressuring them to repay their loans.
MJ Dinesh, Chairman of the Coffee Board of India, stated that he is seeking details on all estates listed for auction across Karnataka and plans to submit a proposal to the government soon. Manjunath, a coffee grower, emphasized the need for banks to consider the growers’ plight, stating, “We have been paying interest for many years, but now it’s difficult due to crop loss. The banks must help and support the growers instead of harassing them. Planters never keep loan amounts pending if they have sufficient funds.”
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