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| INDIAN COFFEE INDUSTRY | |||||||||||||||||
| Achieved Enormous Growth | Interview with G. V. Krishna Rau, Chairman, Coffee Board | ||||||||||||||||
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What is your assessment of the current situation of the Coffee industry in India? The Indian coffee industry is in the
path of growth. As of now coffee is being cultivated in 394352 Hectares
comprising of 189511 Ha. Arabica and 204841 Ha. Robust with an annual
average production of 274000 MT.Around 70% of coffee produced in the
country is being exported with average annual export earnings of Rs.
2000 Crores. The export realization of Rs. 2242.64 crores in 2008-09
was the highest ever in the history of coffee exports from the
country. As regards coffee consumption 6% growth is recorded in
the country as against around 2% growth in the world. In the last six
years, the consumption growth is more pronounced in Non-South regions.
How do you view the Indian coffee sectors significant progress since independence? The Indian coffee industry achieved
enormous growth in the post independence period. The area under coffee
cultivation was increased by 326% from 92523 Ha in 1950-51 to 394352 Ha
in 2008-09 while production recorded an increase of 1288% from 18893 MT
in 1950-51 to 262300 MT in 2008-09 and productivity was increased by
370% from 204 Kg per Ha in 1050-51 to 959 Kg in 2000 and due to the
prolonged coffee crisis from 2000-2005, it has slightly decreased
during the last few years. Coffee export recorded a growth of about
150% during the last two decades and it touched 2.49 lakh tonnes
(2006-07) compared to 1.00 lakh tonnes in 1990 while domestic
consumption increased by 75% during the same period from 54000 MT to
94400 MT. The latest coffee consumption survey conducted by the Board
revealed in the domestic market the penetration levels increased from
62% in 2005 to 92% in 2008. Coffee has the third largest share of
throat amongst all beverages, only after tea and milk. Therefore, while
the impressive growth was witnessed in production, productivity and
exports, the growth of the domestic market has been a recent phenomenon
and the coffee consumption growth is on the threshold of an explosive
growth.
Where Indian coffee industries stand compared to international coffee sector? India is the sixth largest producer and
exporter of coffee in the world with about 4% share in production and
export. In the export front India concentrates more on quality than
quantity. Indian coffees both Arabica and Robusta are fetching premium
prices in the international market due to its quality. Domestic
consumption has gained momentum during the last few years and is
growing at a rate of 6% where as the world growth in consumption is
only 2%.
What are the key issues facing coffee industry today? The impact of prolonged crisis owing to
prolonged depression of coffee prices (2000 to 2005), un- seasonal
droughts and spread of pests and diseases (2002-2005) resulted in a
significant reduction in coffee productivity and at the same time the
cost of production has doubled. Board is extending all support to the
industry to overcome this situation. There is a need to attract
investment in to coffee industry especially in to plantations and for
processing.
Which are the thrust areas for coffee sector in India? Improvement of production, productivity
and Quality of coffee for sustenance of the industry and maintaining
the competitive edge in view of the new situation arising out of India
– ASEAN FTA are the thrust areas of the industry. Increase in value
addition and market development are also equally important.
How do you look at the future of Indian coffee industry? We need to concentrate on reducing the
cost of production by mechanization of farm operations to make our
industry competitive and also increasingly concentrate on value
addition.
With what objective was coffee Board set up? The main purpose of establishing Coffee
Board was to provide marketing of coffee produced in the country along
with research, extension support and promotion of Indian coffee.
What is the exact role of Coffee Board in the Indian coffee industry? After discontinuation of pooling system
in mid 1990s, now focusses on Research, Extension, Development, quality
upgradation, Market intelligence, External and Internal Promotion and
labour welfare. Coffee Board functions as a friend, philosopher, guide
and service provider to the various segments of the Industry. The Board
facilitates the co-ordination among different stake holders of the
industry viz. growers, processors, exporters, domestic traders,
retailers and various associations of the industry and also plays the
role of industry’s spokesman to take up relevant issues with state and
central governments and international organisations like International
Coffee Organisation, Common Fund for Commodities etc.
What will be the future strategy of Coffee Board of India? The thrust areas are Improve production,
productivity and Quality of coffee for sustaining dependable supplies,
maintaining the competitive edge by concentrating on reducing the cost
of production through mechanization of farm operations. Strengthening
the domestic market is very crucial for sustainable development of
Indian Coffee Industry.
What are your Board doing about improvement of the quality and export of Indian Coffee? Aimed at increasing the production of
quality coffee at farm level, Board has been implementing Quality
enhancement programmes where in 20% subsidy is available on the cost of
infrastructure for quality enhancement. Further aimed to boost export
values Board also carries out the following activities.
How do you see the
coffee industry in the year 2020?
Board foresees a growth of 10% in area
under coffee from present level to 432672 Ha, growth of 33% in
production to 400000 MT, 33% growth in productivity to 1000 Kg per Ha
and doubling of domestic consumption to about 200000 MT in 2020.
What about the recent activities of Coffee Board? Board successfully conducted the third
India International Coffee Festival (IICF-2009) during 7 to 9th October
2009, which was attended by about 500 delegates from 17 countries. All
those especially the international delegates and the expo participants
expressed appreciation to the manner in which the event was organized.
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