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Note ban: Coffee growers in state struggle to pay labourers

Published On : 29 Nov 2016   |  Reported By : Courtesy : DHNS   |  Pic On: Photo credit : DHNS


Bengaluru, DHNS: 'According to law, plantation workers must be paid in cash'. Demonetisation has badly hit the coffee growers in the state who are already fearing a drop in coffee production due to scanty rainfall.

As coffee cultivation is labour-intensive, growers are finding it extremely difficult to pay workers due to scrapping of Rs 1,000 and Rs 500 denomination notes and a ceiling imposed on cash withdrawals.

Former president of The United Planters’ Association of Southern India Vijayan Rajes told DH, “The Plantations Labour Act and the Payment of Wages Act mandate that we pay labourers in cash. We are facing severe problem in paying daily wages. However, the impact will be short-term.”

According to Classic Synergy founder and managing director D M Purnesh, a coffee grower with estates in Karnataka, “Demonetisation has affected payment of daily wages to labourers. Normal weekly payments have got a little staggered since we are not able to draw large money from the banks.”

“About 30% of labourers who work in our estate are migrants. We have convinced them about the delay in payments. We have made arrangements with provision stores near the estate to supply provisons to labourers. Shops will maintain an account of the supplies made to labourers and we will pay them directly through our bank account,” Purnesh, who is a member of Indian Coffee Board, told DH.

However, coffee planters are happy that labourers are not skipping work despite delay in payments.

“Almost all our labourers, about 200 in one of our estates have been reporting to work regularly even after demonetisation. We have been making staggered payments by drawing amount from our staff accounts etc. We have already spoken to most of the workers that we will start depositing money into their bank accounts directly. Definitely, there is a temporary setback,” he stated.

Demonetisation has only added to the worries of the coffee growers. “Due to delay in blossom shower this year, we have lost almost 30% of our Arabica crop. This is the second consecutive year where rainfall is below 40% of the annual normal rainfall. If the trend continues, the plants would be highly stressed and we may lose even the future crop. The moisture levels have come down drastically due to low rains in last two years,” Purnesh explained. Though there are reports that only about 20% of the current crop is affected due to scanty rains, it is much higher. Due to shortage of overall rains and less ground moisture, the size of beans will reduce, he opined.

“Banning co-operative banks from exchanging scrapped notes has hit a big number of small growers who mostly deal with such banks. For generations, many growers have been very comfortable transacting with co-operative banks.”

 







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