Union Finance Minister Nirmala Sitharaman has ordered an immediate halt to the ongoing auctions of coffee estates, officials said on Thursday. The directive comes amid concerns raised by stakeholders over valuation, transparency, and the impact of forced sales on farmers and estate workers.

The auctions, conducted by various state agencies and banks to recover outstanding debts, had sparked protests from coffee growers and industry associations. Minister Sitharaman’s intervention is aimed at ensuring that the process is fair, transparent, and does not adversely affect the livelihoods of those dependent on the estates.

Authorities said the suspension will remain in effect until a thorough review of the auction procedures is completed. A committee has been tasked with examining the legal, financial, and operational aspects of the coffee estate sales and recommending measures to protect both creditors and growers.

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Industry representatives welcomed the move, noting that abrupt auctions had created uncertainty in the market and threatened ongoing agricultural activities. They emphasized the need for a balanced approach that safeguards farmers’ interests while allowing financial institutions to recover dues.

The coffee sector is a major contributor to India’s agricultural exports, particularly from regions in Karnataka, Kerala, and Tamil Nadu. Analysts said ensuring stability in estate management is crucial for maintaining production levels, export commitments, and rural employment.

Officials assured stakeholders that the government is committed to resolving disputes and implementing mechanisms that provide clarity and fairness in estate recoveries. The review is expected to conclude within a few weeks, after which auctions may resume under revised guidelines.

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