Integrated Coffee Development Project Scheme (ICDP)

Owing to the importance of the economic contribution of

coffee production in India, the Ministry of Commerce and Industry, the Government of India, launched the Coffee Board in 1942. The board was established mainly to assist coffee growers with trending technologies and increase the quality and production of coffee in India. The Integrated Coffee Development Project Scheme (ICDP) is a scheme launched by the Ministry to encourage coffee development in traditional and non-traditional areas in India.

ICDP Schemes

Development Support for Coffee in Traditional Areas
Coffee Development Programme (CDP) in Non-Traditional Areas
Coffee Development Programme (CDP) in North Eastern Region
Welfare Measures for Children of laborers
Export Promotion - Providing Transit/Freight Assistance for Coffee Exports
Modalities/Guidelines for Support for Value Addition - Support to R&G units

Objectives of the Scheme

The ICDP scheme, which is implemented with a financial allocation of Rs.950 Crores, aims at achieving the following objectives:

To cultivate improved varieties of coffee.
To enhance the quality and production of coffee.
Educate the coffee growers through research and development and incorporate them with advanced technologies.
To extend development support to the coffee growers
To promote native-breed coffee in the national and international market
To strengthen the domestic market with developmental activities

Components of the Scheme

The components that are covered under the scheme and its breakup of the proposed fund are as follows:

A sum of135 crores are allocated for the Research and Development for Sustainable Coffee Production
A fund of92 crores are utilized for the Transfer of Technology and Capacity Building Programs
311 Crores are disbursed for the Development Support for Coffee in Traditional Areas.
An amount of Rs.125 crores is segregated for the Coffee Development Program in Non-Traditional Areas
54.50 Crores is allocated towards the Coffee Development Program in North-Eastern Region
10 Crore is spent on the coverage of the Rainfall Insurance Scheme for Coffee
80 Crores is estimated for the Support for the Mechanisation of Coffee Estate Operations
The expenses for Marketing in terms of Export Promotions are determined at 60 Crores.
An additional sum of 55 Crores is proposed for the Market Development, and A total of Rs.25 Crores is utilized for the Support for Value Addition services.

Features of the Scheme

Indian coffee sector is primarily operated by small growers, while the large and corporate sector growers provide 25% of the area under cultivation and 30% of the total production.
The Board allocates the central portion of the fund for the components - Development Support for Coffee in Traditional Areas and Support for Value Addition. These two components are provided,
- The extended subsidy and financial support for the activities performed by the stakeholders for effective coffee production.
- A clear description of the eligibility norm and segregation of the unit costs rate for various categories of stakeholders.

Eligibility

All tribal growers
The area should be suitable for coffee cultivation as per the opinion of the Coffee Board's officers
The land records shall be in the name of the beneficiary
The beneficiary should furnish the land records/possession certificate duly certified by the Village Authority/State Government Authority/Competent Authority.
The seed material to be procured from the Coffee Board only

Quantum of Subsidy

The subsidy ranges from Rs.50000 to 2.75 lakhs depending upon the nature of cultivation. The subsidy will be disbursed in two instalments. The first instalment will be of 60% to 70%, and the 2

nd instalment will be 30% to 40% of the sanctioned amount based on the cultivation.

Operational Guidelines of the Scheme

The scheme, which was initially implemented in 2014, has been extended during the Medium-Term Framework (MTF) Period, with effect from 2017-2018 to 2019-2020, with slight modifications in its guidelines. The board receives and processes the applications from the coffee growers under the following guidelines.

The board follows the ‘first come, first serve basis’ in processing the application. The pending applications from the previous financial year are processed.
The board favours the new applicants to get benefitted under the scheme. Thus, the coffee grower can avail only one scheme at a time during the MTF period, until the new applicants are served.
The applicants must follow the eligibility criteria, pattern, the rate of assistance to apply and claim the subsidy under the scheme for the activities mentioned under the components.
The applicants should reach out to the Coffee Board head office for any explanation regarding the details of the components.
It is obligatory for the applicants to adhere to the rules and regulations laid out and revised under the General Financial Rules by the Government of India.
The applicants should follow straightforward, uncomplicated, and user-friendly procedures while applying and claiming the benefits under the scheme.
The Board disburses the fund for financial and physical accomplishments depending upon the availability of the fund released by the Government of India.
Subsidies under the scheme are distributed online mode. Thus, all the applicants should ensure that their Aadhaarseeding is enabled so that they can receive their subsidies through Debit Benefit Transfer (DBT) platform and Public Financial Management System (PFMS).

Application Procedure

The applicants should register their claims with all the appropriate documents to the JLOs/SLOs.
The Jews/SLOs can reject the applications submitted without the relevant documents.
The Jews/SLOs initiate the activity feasibility inspection only after receiving the application form from the beneficiaries.

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Frequently Asked Questions

Common questions about Integrated Coffee Development Project Scheme India.

The Integrated Coffee Development Project Scheme (ICDP) is a scheme launched by the Ministry of Commerce and Industry, Government of India, to encourage coffee development in traditional and non-traditional areas across the country. It aims to enhance the quality and production of coffee through various components such as research and development, technology transfer, capacity building, and developmental support for coffee growers.

The primary objectives of the ICDP scheme are to cultivate improved varieties of coffee, enhance the quality and production of coffee, educate coffee growers through research and development, incorporate advanced technologies, extend developmental support to coffee growers, promote Indian coffee in domestic and international markets, and strengthen the domestic market through developmental activities.

The key components of the ICDP scheme include Research and Development for Sustainable Coffee Production, Transfer of Technology and Capacity Building Programs, Development Support for Coffee in Traditional Areas, Coffee Development Program in Non-Traditional Areas, Coffee Development Program in North-Eastern Region, Rainfall Insurance Scheme for Coffee, Support for Mechanisation of Coffee Estate Operations, Export Promotion, Market Development, and Support for Value Addition.

All tribal growers are eligible for the ICDP scheme, provided that the area is suitable for coffee cultivation as per the Coffee Board's assessment, the land records are in the beneficiary's name, and the seed material is procured from the Coffee Board.

The subsidy ranges from Rs. 50,000 to Rs. 2.75 lakhs, depending on the nature of cultivation. The subsidy is disbursed in two instalments, with the first instalment being 60% to 70% and the second instalment being 30% to 40% of the sanctioned amount.

The Coffee Board follows a 'first come, first serve' basis in processing the applications. Pending applications from the previous financial year are processed first, followed by new applicants. Applicants must adhere to the eligibility criteria, pattern, and rate of assistance for the activities mentioned under the scheme's components.

Applicants must register their claims with all the appropriate documents to the Junior Liaison Officers (JLOs) or Senior Liaison Officers (SLOs) of the Coffee Board. The JLOs/SLOs initiate the activity feasibility inspection after receiving the application form from the beneficiaries.

The subsidies under the ICDP scheme are disbursed online through the Direct Benefit Transfer (DBT) platform and the Public Financial Management System (PFMS). Applicants must ensure that their Aadhaar seeding is enabled to receive the subsidies.

The operational guidelines of the ICDP scheme include following the 'first come, first serve' basis, processing pending applications from the previous financial year, favoring new applicants, ensuring adherence to eligibility criteria and subsidy patterns, following straightforward and user-friendly procedures, and disbursing funds based on financial and physical accomplishments and the availability of funds released by the Government of India.

The ICDP scheme is significant for the Indian coffee sector as it primarily operates with small growers, while large and corporate sector growers contribute a substantial portion of the area under cultivation and total production. The scheme provides financial support and developmental assistance to coffee growers, enabling them to enhance their productivity, quality, and market reach.