Development Support for Coffee in Traditional Areas: Support to Small Growers Collectives, SHGs, and Cooperatives for Coffee Marketing helps small and tiny coffee producers improve their income and the quality of their coffee. The scheme encourages farmers to form collectives, SHGs, or cooperatives for community-based marketing, and gives them a financial incentive of ₹4.00 per kg of clean coffee to strengthen their collective bargaining power.
This support is a sub-component of the Integrated Coffee Development Project (ICDP) run by the Coffee Board under the Ministry of Commerce and Industry. For the 2026-27 financial year, the Coffee Board has invited applications from coffee growers across the traditional coffee-growing districts, and the last date to apply is 30 August 2026. Small growers who market their coffee as a group can claim this cash subsidy directly to their bank accounts.
Development Support for Coffee in Traditional Areas: Support to Small Growers Collectives, SHGs, and Cooperatives for Coffee Marketing
Small and tiny coffee growers often struggle to get a fair price because they sell their produce alone. This scheme changes that by pushing growers to come together as collectives, Self Help Groups (SHGs), or cooperatives. When growers market coffee as a group, they can sell in bigger lots, reach better buyers, and negotiate a stronger price.
By selling through a community-based approach, growers also get a chance to improve the quality of their coffee. Better quality usually means better returns. The scheme gives a cash incentive of ₹4.00 per kg of clean coffee, which is paid directly to the individual members of the group once the sale is complete. This makes the whole process clear and easy to track.
The scheme is open to growers in traditional coffee-growing states, which mainly cover Karnataka, Kerala, and Tamil Nadu. Any registered collective, SHG, or cooperative in these areas that markets clean coffee can apply. This is a Central government scheme, and all payments are made electronically through the bank accounts of the members.
For growers who are part of a group, this is a simple way to earn extra income on top of the sale price. Related support is also available under other ICDP components such as Development Support for Coffee in Traditional Areas: Replantation and Development Support for Coffee in Traditional Areas: Water Augmentation.
Key Information
| Scheme Name | Development Support for Coffee in Traditional Areas: Support to Small Growers Collectives, SHGs, and Cooperatives for Coffee Marketing |
| Level | Central |
| Nodal Ministry | Ministry of Commerce and Industry |
| Run By | Coffee Board of India |
| Benefit Type | Cash Subsidy |
| Subsidy Amount | ₹4.00 per kg of clean coffee |
| DBT Enabled | Yes |
| Application Mode | Online through Coffee Board portal |
| Last Date for 2026-27 | 30 August 2026 |
| Official Website | coffeeboard.gov.in |
Benefits
Eligible groups receive a cash subsidy of ₹4.00 per kg of clean coffee marketed through their collective, SHG, or cooperative. The money is paid directly to the individual bank accounts of the members who are listed in the sale note. This is an easy and direct way to add to the income from the coffee sale.
Eligibility
To claim this benefit, a group has to meet a few simple conditions. The main points are given below.
- The applicant must be a registered Small Growers Collective, Self Help Group (SHG), or Cooperative located in a traditional coffee-growing state.
- The group must market coffee in clean coffee (green bean) form.
- The coffee must be sold through official channels such as public auction platforms like the Indian Coffee Trade Association (ICTA), direct exports handled by the organization, or recognized Commodity Exchanges where physical delivery takes place.
- If a group has already claimed this subsidy for the same activity during the current ICDP period, it cannot claim it again unless the group includes new beneficiaries.
Application Process
Follow these steps to claim the benefit for the 2026-27 financial year.
STEP 1 - After marketing the coffee, prepare the claim for reimbursement using the prescribed application form along with all the proofs of sale.
STEP 2 - Submit the completed application to the local Deputy Director (Extension) within the same financial year in which the marketing activity was completed.
STEP 3 - The Deputy Director (Extension) will review the application and forward it to the Deputy Director (Market Research) at the Coffee Board Head Office in Bengaluru for final approval.
Disbursement - Once approved, the subsidy is released directly through NEFT to the bank accounts of the individual members as listed in the sale note.
Documents
Keep the following documents ready before filing the claim. Missing documents can lead to rejection of the application.
- Completed application form in duplicate.
- Certificate or proof of registration for the Collective, SHG, or Cooperative.
- A detailed list of members as per Annexure 1.
- Member-wise details of coffee sold for the specific claim.
- A certificate from the group confirming membership.
- A VAT registration certificate from the state Commercial Tax Department, if applicable.
Additional documents are needed based on the marketing method. For auctions, submit the registration certificate as a member of ICTA and an attested copy of the sale note issued by the auctioneer. For direct exports, provide the export permit with Customs endorsement, the ICO certificate of origin with Customs endorsement, and the Bill of Lading (BL).
References
Coffee Board of India Official Website
Coffee Board Invites ICDP 2026-27 Applications, Deadline 30 August 2026
FAQ's
Can a group claim the subsidy again if it already received it during the ICDP period?
No, the same subsidy cannot be claimed twice during the ICDP period unless the group includes new beneficiaries.
What documents are needed for direct export claims?
You will need an export permit with Customs endorsement, an ICO certificate of origin with Customs endorsement, and the Bill of Lading.
Which marketing methods are valid for this subsidy?
Valid methods include recognized public auctions like ICTA, direct exports, or recognized Commodity Exchanges that involve physical coffee delivery.
How much is the subsidy amount?
The scheme provides a subsidy of ₹4.00 per kg of clean coffee.
How is the subsidy paid out?
Once approved, the funds are sent directly to the individual bank accounts of group members via NEFT.
Who is eligible to participate?
Small Growers Collectives, SHGs, and Cooperatives operating in traditional coffee-growing states are eligible.
Where do I submit my application?
Submit the claim to the Deputy Director (Extension) in your respective region.