Post blossom Coffee estimates might reduce 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 is likely to reduce from 2,91,000 tons due to heavy rains and the incidence of white stem borer in the Coffee growing regions.

Revealing this to newsmen here today Karnataka Planters Association Chairman Jeffry Rebello said while production of Arabica in India was stagnant with over One Lakh tons, there was a steady growth in production of Robusta. With the growing acceptability of washed Robustas in the last 10 years and the massive replanting that was taking place from Arabica to Robusta, it was likely that Robusta production was going up further. People were shifting from Arabica to Robusta for economic reasons in terms of cost and the good market price for the variety, he added.

He said with regard to production in Karnataka, the main contributor among the states in the country, the total production was expected to be around 2,12,250 tons comprising 82,000 tons Arabica and 130,250 tons Robusta.

He 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 tons, he added.

He urged the Centre to introduce the Export Remission Scheme as was done in case of labour intensive industries such as the textiles. The plantation sector, especially the coffee, appeared to suitably qualify the benefits announced under the scheme. Since the surge in the country's foreign exchange reserves had dented the competitiveness of Coffee exports, mst of the competitors in the coffee industry had either managed to control their currency appreciation or compensate their exporters through monetary or fiscal measures there was a need to introduce the scheme, he contended.

UNI

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