Central govt mulls schemes to boost coffee sector

Union commerce ministry has chalked out plans to initiate measures to boost the plantation sector in south India, especially the coffee industry.

Addressing a press conference after presenting the 'Flavour of India Coffee Awards' here on Sunday, Jairam Ramesh, Union commerce minister said that the existing plantation schemes and packages will continue.

In addition to the crop schemes and packages, taking a long term view to give a boost to the industry, the minister said that a campaign to boost domestic consumption, to emphasise export value-added coffee products, corporatise or encourage a co-operative movement in the plantation sector and encourage alternative cropping that are not susceptible to global trade will be given a push.

India exports about 80 per cent of its coffee production, thus exposing itself to volatility in the global markets. Brazil, a major coffee grower, has 50:50 domestic consumption to exports. "If India adopts a similar model, growers can be shielded from volatility of prices," he said.

"The domestic consumption too is concentrated in just one state i.e. Tamil Nadu for it consumes 80 per cent of the coffee consumed domestically. About 75 per cent of coffee in the country is grown in Karnataka, but the state consumes only 5 per cent," he added.

The country has a good scope to export coffee after value adds are made. Presently, one-third of the country's exports are value-added coffees and rest two-third is green coffee. "It is here that India must improve by exporting value-added coffees.

To give a fillip to the sector, the Centre has thrown open the sector to 100 per cent foreign direct investment.

To bring in professionalism into the plantation sector, corporatisation or encouragement through co-operatives is planned. For this, NDDB has been asked to come up with a plan to establish co-operatives in coffee-growing regions, said Jairam Ramesh.

By establishing co-operatives they can absorb market shocks, he added. To cut dependence on single crop, alternative cropping or intercropping is also planned. Here planters or growers can take up cultivation of medicinal plants under contract farming.

Jairam Ramesh said that United Planters Association of South India, Karnataka Planters Association and Coffee Board have been given a month's time to come up with ideas and suggestions.

"Exports are important not for the dollar earnings but for jobs it creates," he said and added that "states like Karnataka, Tamil Nadu, Kerala, Andhra Pradesh, West Bengal and Assam we cannot neglect the plantation industry," he added.