Domestic use of Coffee to rise by 50pc in 11th Plan

Bangalore, Feb 16: Consumption of Coffee in domestic market in India will be increased by 50 per cent during the Eleventh five year plan, said Coffee Board Chairman G V Krishna Rau.

In a chat with newsmen here, he said that 80,000 tons of Coffee was consumed in the domestic market now out of total production of 2,75,000 tons. The total consumption by the end of 11th plan was expected to be around 1,20,000 tons out of total 3,30,000 tons, he revealed.

Replying to queries, he said the Board was working on a major investment proposal during the 11th plan to implement weather related insurance scheme to Coffee growers across the country. The idea was to implement the scheme before the onset of blossom showers but could not be done as the proposal was not cleared by the centre as yet. However, he hoped that it would be implemented before monsoon.

He said the State Bank of India Capital Market wing had finalised a market study report comprising various formulations with regard to providing special package for rejuvenation of Coffee plants on the lines of one announced for tea plantation. The proposal was to cover an area of 80,000 hectares of Coffee plantation out of 3,50,000 hectares. Nearly 40,000 hectares would be covered under the 11th plan and the remaining 40,000 hectares in subsequent plans, he explained.

Replying to a question, Mr Rau stressed the need for Indian Coffee growers to add value to the product to compete in the international market. '' Even if we exported one lakh tons of value added product, the country would be earning a good foreign exchange,'' he felt. However, focus on export in the sector was not significant in the present context as Indian economy was strong to absorb the coffee effect in the country, he added.

He said there was a need to capitalise on the unique strength of India to utilise domestic market as the sector had a huge potential to create employment opportunities. In the international market Indian coffee had no control over the fluctuation of prices, he pointed out stressing the need to concentrate on domestic market.

Sufficient efforts had been made to promote coffee in domestic market especially in last one year, he added.

He said the Board was playing the role of a nodal agency advising the government with ideas on giving incentives and promotional opportunities to develop market in the domestic area by creating enabling environment.

On implementation of Vidharba package for farmers, as announced by the Centre, he said it also included the coffee growers and the package was yet to be implemented. Bankers were awaiting clarifications from the Centre with regard to 14 issues raised by them including waiver of loans and rephasing of the principle, he added.

He said 14000 coffee growers were to be covered under the package through Special Coffee Term Loan. But the delay had not posed any hurdle to issue fresh loans and hoped that the banks would take decision in this regard soon. The total loan amount was around Rs 2000 crores and Rs 217 crores towards the waiver, he recalled.

UNI