New Delhi, Aug 24: Government on Friday announced a bailout package for the coffee growers after finalising easier term loans in collaboration with the Reserve Bank of India (RBI). The package, which is an improvement on the Special Coffee Term Loan (SCTL) at present spread over 7-9 years, allows for restructuring loans to nine years and above, raising the moratorium period and inclusion of many more long term loan components amongst others, Federal Commerce Minister Murasoli Maran said here.
According to the package, SCTL framed earlier this year, can be spread to nine years and above by the concerned banks after making an assessment on merit of individual cases.
Banks can also raise the moratorium period for payment of principal component of the loan from two to three years provided servicing of interest is also undertaken by the loanees concerned.

Numerous long term loan components which earlier stood excluded from the purview of SCTL have been included provided it could be established that these loans were essentially for coffee related operations.
Banks can provide Export Packing Credit (EPC) finance to producers exporting coffee from the proceeds of which the agricultural loans can be liquidated.
To be eligible for fresh crop loans, 75 per cent of the dues have to be repaid, but the norm can be relaxed on a case by case basis, provided it is approved by the Board of Directors of the respective banks, according to the package. Bureau Report