Coffee Board pulls up firm for fake exports to Libya

The Coffee Board has initiated action against an Indian commodity-trading firm for allegedly exporting duty-free imported 1,300 tonne of Vietnamese coffee as Indian produce, a senior government official said on Friday.

The action follows a complaint by United Planters' Association of Southern India that (Upasi)"inferior" quality imported coffee was being re-exported as Indian produce.

Coffee can be imported duty-free provided a similar amount is re-exported after refining. However, the produce cannot be labelled 'made in India' and its origin has to be specified.

If the consignment is not re-exported, it attracts an import duty of 100 per cent. The alleged offender in the mentioned case is Princess MC Foods, coffee industry officials said.

The Coffee Board has started a probe into the company's antecedents, the official said.

"We are concerned with the import as the idea behind it is to blend the Vietnamese coffee with local produce and send the consignment as 'made-in-India'," Anil Bhandari, president, Upasi said.

"We have already informed the Coffee Board and the commerce ministry about the consignment, which has been shipped through Kandla Port," Bhandari said.

In January, a tea consignment from India to Libya was found inferior. On probe, it was found that the shipment was not produced in India but was re-exported as Indian tea.

After this incident, Upasi had persuaded the commerce ministry to issue strict guidelines to stop the practice, he said.

"We cut a sorry picture if inferior tea and coffee are sold in the international market as Indian beverages. This cannot be tolerated," Bhandari said.

The case in short

The alleged offender , Princess MC Foods, had in January, sent a tea consignment from to Libya, which was found inferior. On probe, it was found that the shipment was not produced in India but was re-exported as Indian tea

The commodity-trading firm had exported 1,300 tonne of duty-free imported Vietnamese coffee as Indian produce

Coffee can be imported duty-free provided a similar amount is re-exported after refining. However, the produce cannot be labelled 'made in India' and its origin has to be specified