Coffee exports to reach Rs 2,000 cr by 2010

New Delhi, Aug 15 (UNI) India's earnings through coffee exports are likely to rise to Rs 2,000 crore by 2010 from the current level of Rs 1,650 crore with its quantity exceeding by about five lakh tonnes from current level of 3.3 lakh tonnes, an industry body says Coffee exports will increase as domestic coffee producers will focus on exports on account of favourable realisation of international coffee prices, Assocham said.

More than 80 per cent of domestic coffee production would be out for exports as India is likely to witness a moderate growth in its coffee consumption in future also, Assocham said.

''Total permits issued by Coffee Board of India for export purposes in 2006-07 are about 2,21,000 tonnes as against 1,71,262 tonnes in 2005-06. The number would go up by at least seven to eight times, particularly when emphasis on coffee exports would be very high in view of its rising demands from countries like Italy, Russia and Germany,'' chamber President Venugopal N Dhoot said.

Even Belgium is emerging as one of the largest importers of Indian coffee, he added.

These countries dependence on coffee exports from India would keep spiralling because of price factor and guaranteed assured supplies from states like Karnataka, Kerela and Tamil Nadu, says Assocham assesment.

In the current fiscal, total coffee production from Karnataka alone could go up around 206.025 MT against about 59,475 MT of Kerela and that of 18,225 MT of Tamil Nadu.

The Chamber further stressed on certain measures by the Indian Coffee Board to boost domestic consumption, including transparency level of 100 per cent.

Secondly, the Board should put enough pressures on financial institutions, particularly within the states so that farmers coffee holdings grow at a large-scale, the chamber said.

As per the estimates by Assocham, out of 1,78,308 coffee holdings, as many as 28,000 are not in a position to repay bank loans. Hence, the government with the Ministry of Commerce should come out with a package to grant them interest-free loans to increase their holdings at least till the time they pay their debts.

Thirdly, farmers should also be encouraged to grow organic coffee and coffee beans as it will command higher price with lower acreage, the benefit of which would accrue to coffee growers only, the chamber added.

The global production of coffee for the year 2007-08 could go up to over 200 million bags compared to 125 million bags last fiscal and is likely to be around 600 million bags by 2010.

UNI