Coffee Estates in Crisis: Will the Centre End Online Auctions?

The Centre has stepped in to address mounting concerns from coffee growers in Karnataka over the online auction of coffee estates. Union Finance Minister Nirmala Sitharaman assured a parliamentary delegation led by Udupi–Chikkamagaluru MP Kota Srinivas Poojary, accompanied by former Prime Minister H.D. Deve Gowda, that urgent measures will be considered to halt such auctions.

Growers argued that the SARFAESI Act, which empowers banks to auction estates of loan defaulters, was being misused by intermediaries to acquire plantations at undervalued rates. The government’s intervention aims to provide relief to distressed farmers and ensure fair practices in the coffee sector.

Key Highlights

• Government Assurance: Centre to examine halting online auctions of coffee estates.
• Farmers’ Concerns: Digital foreclosure seen as unfair, pushing growers into distress.
• Political Support: Karnataka MPs and H.D. Deve Gowda raised the issue in Parliament.
• Legal Context: Auctions conducted under SARFAESI Act provisions.
• Sector Impact: Coffee-growing regions of Chikkamagaluru, Hassan, and Kodagu most affected.

This move signals the government’s intent to protect farmers from exploitative practices while balancing financial institutions’ rights under existing laws.

Sources: The Hans India, The New Indian Express