John Myers Jr., Staff Reporter
THE MINISTRY of Finance has turned down a request to provide interim payment to the island's coffee farmers who have been unable to recover insurance claims for damage caused by Hurricane Ivan.
Agriculture Minister Roger Clarke told the Farmers Weekly that the Finance Ministry has indicated that it was not in a position to provide any funding at this time. "The Ministry of Finance has indicated that it is not in a position at this point in time to finance that project," emphasised the minister.
The Jamaica Agricultural Society (JAS) in July appealed to the Government to provide an interim payment of US$3 million until the insurers paid over an equivalent sum to the more than 6,000 coffee farmers who have been awaiting payment for a year now.
NEGOTIATIONS
Mr. Clarke, who was attending an exhibition put on by his Ministry at Hope Gardens, St. Andrew, last Thursday, said the lawyers representing the Coffee Industry Board (CIB) and the trustees of the insurance fund for the farmers, were currently in negotiation with the receivers of Dyoll Insurance to work out a favourable agreement.
"From where I sit, the farmers are entitled to their compensation because they paid and the money is available, but all the legal ramifications are holding up the process and I would like to see it move with dispatch," Minister Clarke said.
The inability of the farmers to collect their insurance claim has triggered concerns that coffee production will be affected this season, as many farmers have been unable to replant due to a lack of funds. Already, this has begun to manifest itself as the CIB is reportedly experiencing a difficulty in sourcing enough coffee to supply the export market. A source at the CIB said it would normally have about 20 per cent of the required amount for export, however, it now has only about five per cent of that amount.
The island's coffee industry, of which the world famous Blue Mountain coffee brand is a product, is estimated to worth some US$40 million annually.
