India targets to double coffee exports to Russia

Chikamagalur, July 16: India aimed to double its coffee exports to Russia from the present 20,000 ton in next four years, Union Minister of State for Commerce Jairam Ramesh has said.

Mr Ramesh who toured the three coffee growing districts of Kodagu, Chikmagalur and Hassan in Karnataka during the week end to interact with the growers, told newsmen Russia was an important market for Indian Coffee but exports to the nation were showing a declining trend.

Immediate attention would be given to double exports of coffee to Russia to 40,000 ton in next four years.The Tea Blend Representative stationed at Russia would be entrusted to look after coffee also.

Mr Ramesh said of the total coffee production in the country, 70 per cent was being exported and last year, the coffee exports were valued at 450 million US Dollar compared to 350 million USD and 270 million USD respectively during the two previous years.

Besides, Russia other main markets for Indian Coffee were Italy, Belgium and Germany.

Export of coffee to Italy was about 27 per cent, while it was seven per cent to Belgium and five per cent to Germany. Export to Russia was about 22 per cent last year.
Mr Ramesh said more attention was needed to exploit coffee market in United States, Australia, Japan and China. At present, exports to the US constituted 5000 ton and Japan 4000 ton. ''We have to double the exports in the countries which are importing coffee from India and make inroads into China. We need to concentrate on these countries more to double the present exports and introduce Indian Coffee,'' he added.

Mr Ramesh said besides exports, more attention was required to boost domestic consumption.

''Though the domestic market has shown increasing consumption last year with 85,000 ton from 55,000 ton ten years back, per capita consumption of coffee in India is only 63 gram, while in France it is 11.3 kg.'' ''Coffee consumption is mainly seen in southern states of Tamil Nadu, Karnataka and Andhra Pradesh.

''Though in Karnataka the trend has increased, in Tamil Nadu it is stagnant.

''While in Andhra Pradesh it is reducing, in Northern parts it is yet to pick up,'' he added.

Stating his purpose of visit was to hear the grievances of coffee growers, he said of the total coffee produced in the country, small growers, owning less than 25 acre, accounted for about 60 per cent.

He said though the coffee growers faced problems mainly due to drought conditions from 2003 to 2005 and decline in prices in the international market following stock build-up by Brazil, the industry recovered last year and further improvement was expected this year.

UNI