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illy Cafe to bring small coffee growers under one roof

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Our Bureau Bangalore
Last Updated : Jan 28 2013 | 5:12 PM IST
illy Caffe, the Trieste-based Italian coffee roaster, plans to bring small growers supplying quality coffee from south India under one roof by initiating a growers' co-operative.
 
Andrea Illy, chairman and CEO of illy Caffe, addressing reporters here, said, growers are diverse and dispersed over vast areas in the southern states.
 
A lot needs to be done to uplift their condition by initiating quality awareness and the best global farming practices through a single platform.
 
The company operates through growers' co-operatives in coffee growing countries like Brazil, Guatemala and Colombia. This has become a direct platform for interface, he added. illy Cafe uses Indian raw coffee upto 20 per cent in its Espresso blends sold in 130 countries globally.
 
It presently sources over 2,500 tonnes of Arabica coffee varieties.
 
On the high import duties on roasted coffee varieties, Andrea Illy said, "Domestic coffee consumption will double if the import duty is cut and that will bring other coffee majors into the market."
 
"Presently, the import duty on roasted coffee is about 108 per cent. This is mainly aimed at protecting the domestic growers," he added. This protectionist measure should go to help the coffee growers to sell more coffee.
 
The illy Caffe chief also said that his company will take up the duty issue with the Centre along with its new partner - Fresh and Honest of the Sterling Infotech Group.
 
"The government should develop a strategy to improve the living conditions of growers instead of trying to protect the developing market," he said.
 
"If roasted coffee consumption picks up in India, it will have a positive impact on green coffee pricing and that will subsequently benefit the growers."
 
Ties up with Fresh & Honest
 
illy Caffe and Fresh & Honest Cafe Limited, a Sterling Infotech Group company have entered into a deal to invest $15 million to $20 million to install 6,000 coffee vending machines across India over the next five years.
 
Andrea Illy, chairman and CEO of illy Caffe said that the deal with Fresh & Honest Cafe Limited will help the company target hotels, cafes and restaurants apart from corporate and public places in India.
 
Fresh & Honest Cafe Limited presently has about 2,100 coffee vending machines installed across the country. To build and grow the Indian market, the company plans to offer training courses through the University of Coffee, Trieste.

 
 

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First Published: Oct 03 2005 | 12:00 AM IST

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