Centre to examine halt on online auction of coffee estates
New Delhi/Chikkamagaluru: Union Finance Minister Nirmala Sitharaman has assured a parliamentary delegation from Karnataka that urgent steps will be considered to halt online auctions of coffee estates under the SARFAESI Act, following complaints that distressed growers are being pushed into losing their land through digital foreclosure processes. The assurance came after a delegation led by Udupi–Chikkamagaluru MP Kota Srinivas Poojary met the minister in Parliament, in the presence of former Prime Minister H.D. Deve Gowda. The MPs conveyed concerns from coffee-growing regions that online auction mechanisms were being misused by intermediaries to acquire plantations at undervalued prices.
According to the delegation, more than 90 per cent of coffee growers in the region are small landholders, many of whom lack awareness about digital auction proceedings initiated to recover bank dues. They alleged that this information gap leaves vulnerable farmers exposed to distress sales, with some complaints suggesting procedural lapses and inadequate communication from lending institutions. Sitharaman is understood to have directed officials to examine the matter and explore immediate safeguards to prevent exploitation of coffee growers, particularly in cases involving small holdings. The minister emphasised the need to balance financial recovery mechanisms with protections for borrowers facing genuine hardship, sources familiar with the meeting said.
Coffee cultivation is a key livelihood sector in parts of Karnataka, including Chikkamagaluru, Kodagu and Hassan districts, where fluctuating prices, rising input costs and climate pressures have already strained growers’ finances.
Members of Parliament Vishweshwar Hegde Kageri and Dr C.N. Manjunath were also part of the delegation, which urged the Centre to review enforcement practices to ensure transparency and farmer protection. Officials are expected to study the representations before issuing further directions.
