APFDC plans to directly export Ananthagiri coffee

Andhra Pradesh Forest Development Corporation Limited (APFDC) plans to start direct exports of Ananthagiri coffee seeds to Europe and the US. The corporation expects to export close to 120 tonnes of coffee seeds next year.

The move is likely to fetch the corporation an additional margin of Rs 5-7 per kg of coffee seeds. It also plans to appoint a consultant for the venture.

"In all likelihood, we will start the direct exports of coffee seeds within two or three months. In this regard, we are planning to appoint a consultant very soon. During the next fiscal, we have targeted to export a minimum of 120 tonnes A grade quality Arabica coffee seeds," B Trinadha Rao, regional manager of APFDC, told Business Standard.

At present, Indian coffee seed exporters have been purchasing Ananthagiri coffee seeds from APFDC before exporting them.

"If we can export our material directly to other countries, the corporation will get an additional margin of about Rs 5-7 per kg. We have, therefore, decided to foray into the direct export market in the financial year 2004-05. We plan to initially export up to 120 tonnes of Ananthagiri coffee seeds, which will later be increased to 500 tonnes," Trinadha Rao said.

Last year, Ananthagiri Coffee got the 'Flavour of India' in the cupping competition held at Boston, and this year also Ananthagiri coffee estate seed samples have been sent to Italy for cupping competitions.

APFDC has been cultivating Arabica coffee in about 10,000 acres in Ananthagiri reserve forest area. When compared to last fiscal, the current year coffee production has dropped by nearly 33 per cent in Ananthagiri coffee estate.

"During the current fiscal, due to adverse weather conditions and severe long spell summer, our coffee production in Ananthagiri estate has fallen to 900 tonnes this year from 1,200 tonnes last year. However, we have got good prices this year. During the last fiscal, we got an average price of Rs 48 per kg of coffee seeds, whereas this fiscal the prices have gone up to Rs 60-63 per kg," he said.

After winning the 'Flavor of India' award, the Central government released Rs 58 lakh as grant to upgrade the coffee curing plants under Ananthagiri coffee estate area.

"Once these works are completed, the processed seed quality will improve and we can get good prices in the international market," Trinadha Rao said. During the next fiscal, the coffee production in Ananthagiri estates will increase to 1,600 tonnes due to good weather conditions," he added.

To encash on the demand for Ananthagiri coffee in the international market, APFDC has sent a proposal to the Central government for increasing the coffee cultivated area by another 12,000 acres with an investment of about Rs 40 crore.