Coffee estimates likely to be reduced due to heavy rains

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Bangalore, Oct 29 (UNI) The post blossom estimates of Coffee production in the country for the year 2007-08, was likely to be reduced from 2,91,000 tonnes due to heavy rains and the incidence of white stem borer in the Coffee growing regions.

Talking to newspersons here today, Karnataka Planters Association Chairman Jeffry Rebello said while production of Arabica in India was stagnant with over one lakh tonnes, there was a steady growth in production of Robusta. People were shifting from Arabica to Robusta for economic reasons in terms of cost and the good market price for the variety, he added.

Mr Rebello said total production in the State, was was expected to be around 2,12,250 tonnes, comprising 82,000 tonnes Arabica and 130,250 tonness Robusta.

The Chairman said the world Coffee production was estimated at 112 million bags during the crop year. The latest trends had revealed that buoyancy in prices would continue during 2007 as the prices of other milds and robustas reported an increase in prices.

The world Coffee production had also increased from 109.85 million 60 kg bags in 2002 to 120.11 million bags in 2006. During the same period, the domestic consumption had increased from 68,000 to 82,000 tonnes, he added.

He urged the Centre to introduce the Export Remission scheme, as was done in the case of labour intensive Industries such as the textiles. The plantation sector, especially the coffee, appeared to qualify for the benefits announced under the scheme, he added.

Mr Rebello said a surge in the country's foreign exchange reserves had dented the competitiveness of coffee exports, as most of the competitors in the Industry had either managed to control their currency appreciation or compensate their exporters through monetary or fiscal measures.

UNI

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