This scheme is a sub-component of the “Integrated Coffee Development Project During the Medium Term Framework (MTF) Period: Development Support to Stakeholders” by the Coffee Board under the Ministry of Commerce and Industry. It aims to support small and tiny coffee growers in traditional coffee-growing areas by incentivizing the formation of collectives, Self Help Groups (SHGs), and cooperatives. By providing financial incentives for coffee marketing, the scheme helps these groups enhance the quality of their coffee and realize better prices through collective bargaining and recognized marketing platforms.
Benefits
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Financial Incentive:
A subsidy of ₹4.00 per kilogram of clean coffee is provided. -
Enhanced Price Realization:
The scheme encourages group-based marketing via recognized public auction platforms (e.g., Indian Coffee Trade Association), direct export channels, or recognized Commodity Exchanges, leading to improved quality and collective bargaining for better price realization.
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Eligibility
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Applicant Category:
The applicant must be a Small Growers’ Collective, Self Help Group (SHG), or Cooperative operating in traditional coffee-growing states. -
Coffee Marketing:
The collective should engage in marketing clean coffee (green bean) under its name by:-
Utilizing recognized public auction platforms,
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Engaging in direct export,
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Using recognized Commodity Exchanges where physical delivery takes place.
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Exclusivity:
Applicants who have already availed subsidy under a similar activity/component during the Mission for Integrated Development of Horticulture (MIDH) period are not eligible unless new beneficiaries are included.
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Application Process
Offline Application
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Furnishing the Claim:
After marketing coffee, the small growers’ collective/SHG/Cooperative must fill out the prescribed claim application form along with supportive documents. -
Submission:
Submit the completed application to the concerned Deputy Director (Extension) within the same financial year the activity is completed. -
Scrutiny and Forwarding:
The Deputy Director (Extension) will scrutinize the application and forward it to the Deputy Director (Market Research) at the Coffee Board, Head Office in Bengaluru for approval by the competent authority. -
Disbursement:
Once the sale of coffee is completed, subsidy funds are disbursed directly to individual members’ bank accounts via NEFT, as reflected in the sale note issued by auctioneers or commodity exchanges.
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Documents Required
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Application in the prescribed format (duplicate).
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Certificate of incorporation/registration, along with the memorandum and articles of association (for Growers’ Collective/SHG/Cooperative) issued by the appropriate authority.
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Complete list/details of members of the organization (as per Annexure 1).
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Member-wise details of coffee sold, accompanying each subsidy claim.
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Certificate from the Growers’ Collective/SHG/Cooperative confirming the membership status of the grower.
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Certificate from the concerned State Government commercial tax department (VAT registration certificate) where applicable.
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Additional Documents (Based on the Method of Coffee Marketing):
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For Coffee Marketed Through Auction Platforms/Commodity Exchanges:
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Registration certificate as a member of ICTA or another recognized marketing auction platform (one-time submission).
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Attested copy of the sale note issued by the auctioneers to the collective.
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For Coffee Exported Directly:
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Export permit with Customs endorsement.
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ICO certificate of origin with Customs endorsement.
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Bill of Lading (BL).
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Frequently Asked Questions
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Can a grower who has availed subsidy under one activity/component claim subsidy for the same activity/component again during the MIDH period?
No, a grower cannot claim subsidy for the same activity/component again during the MIDH period unless new beneficiaries are covered. -
What additional documents are required for coffee exported directly?
Applicants must provide an export permit with Customs endorsement, an ICO certificate of origin with Customs endorsement, and a Bill of Lading. -
What additional documents are necessary for coffee marketed through auction platforms or commodity exchanges?
A registration certificate as a member of ICTA or another recognized platform and an attested copy of the sale note issued by the auctioneers are required. -
What are the mandatory documents required for claiming the subsidy?
The mandatory documents include the prescribed application form, certificate of incorporation/registration of the collective/SHG/cooperative, member list (Annexure 1), member-wise details of coffee sold, and relevant certificates from the collective and State Government commercial tax department (if applicable). -
When is the subsidy disbursed to the individual members of small growers’ collectives/SHGs/Cooperatives?
Subsidy disbursement occurs after the complete sale of coffee, with funds released directly to individual members’ bank accounts via NEFT. -
How much subsidy is provided per kilogram of clean coffee under this scheme?
The scheme provides a subsidy of ₹4.00 per kilogram of clean coffee. -
What are the acceptable methods of marketing coffee under this scheme?
Acceptable methods include utilizing recognized public auction platforms (like ICTA), direct export, or using recognized Commodity Exchanges that ensure physical delivery of coffee. -
Who is eligible to benefit from this scheme?
Only Small Growers’ Collectives, SHGs, or Cooperatives operating in traditional coffee-growing states and engaged in marketing clean coffee are eligible. -
What is the objective of the scheme?
The primary objective is to support small coffee growers by incentivizing the formation of collectives and improving quality and marketability through financial support, ultimately leading to better price realization. -
Are there any special provisions for SC/ST community growers?
The scheme details do not specify special provisions for SC/ST growers; eligibility is determined by collective formation and the ability to market clean coffee. -
What is the role of the Coffee Board in implementing this scheme?
The Coffee Board, along with the Department of Commerce and Ministry of Commerce and Industry, oversees the scheme’s implementation, including reviewing subsidy claims and disbursing funds. -
How can a small grower ensure eligibility for this scheme?
Small growers should join or form a recognized collective, SHG, or cooperative, and ensure they market clean coffee through the approved channels. -
Can you explain the importance of recognized public auction platforms?
Recognized public auction platforms such as ICTA ensure transparency and competitive bidding, which can help growers realize better prices for their coffee. -
Can individuals benefit from this scheme, or does it require collective action?
This scheme is designed for collective action; benefits are provided to small growers’ collectives, SHGs, or cooperatives, not to individual growers. -
Is this scheme applicable to non-traditional coffee-growing areas?
The scheme specifically targets traditional coffee-growing areas. -
What is the MIDH period?
MIDH stands for the Mission for Integrated Development of Horticulture; the subsidy eligibility conditions apply during this designated period. -
How can small growers realize better value for their coffee through this scheme?
By forming collectives or SHGs, small growers can collectively market their coffee, improve quality through shared resources, and leverage collective bargaining power for better prices. -
What is the significance of forming collectives or SHGs for coffee marketing?
Collective action helps in pooling resources, reducing transaction costs, improving quality standards, and ensuring higher price realization through market negotiations. -
What documents are required if coffee is exported directly?
For direct export, applicants must submit an export permit with Customs endorsement, an ICO certificate of origin with Customs endorsement, and a Bill of Lading (BL).
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