The Coffee Board of India has granted export permits to grow the crop in 1.84 lakh hectares (ha), an increase of 12 per cent over the previous year, as it expects coffee exports to grow because of a weak rupee.
“This year, exports are going to expand. International coffee prices are on a declining trend, more acute in Arabica. The rupee depreciation is helping exports and domestic consumption is also increasing,” said Coffee Board chairperson Leena Nair, announcing the sixth edition of the India International Coffee Festival (IICF), with the theme — Celebrating with Coffee, which will be held in Mumbai in January 2016.
The Coffee Board estimates production at 355,600 tonnes this year. The current rains in south India might have a marginal impact on harvest, which began earlier this month. “The rains are good for the next year,” said Nair.
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Consumption in non-traditional areas such as Maharashtra and Delhi is growing by 43 per cent because of the penetration of cafes such as Barista, Coffee Day and Starbucks. The traditional pockets of Tamil Nadu, Kerala and Karnataka are witnessing a growth of 2.5 per cent a year. “So, overall the consumption is increasing by six to seven per cent,” said Anil Kumar Bhandari, president of the India Coffee Trust (ICT).
The board, as well as ICT, would push for higher consumption at homes, taking the experience from cafes, he said.
India’s coffee consumption has touched over 100,000 tonnes a year with a per capita consumption of 90 grammes. “We are expanding the market by encouraging people in non-traditional areas to drink coffee,” Nair said.
The biennial coffee summit in 2016 will also focus on encouraging entrepreneurs to build startups in the business, Bhandari said.
Around 400 delegates and 60 companies are set to discuss the prevailing trends in production, current developments and emerging opportunities in the sector at the IICF 2016.