Coffee production seen rising 6% in 2004-05

Robusta coffee output is estimated at 170,000 tonne while Arabica production is seen at 105,000 tonne, the official said.

Coffee harvest for the 2004-05 crop was completed in March.

The pre-blossom coffee production estimate of the Coffee Board was 292,400 tonne for 2004-05.

The coffee sector had undergone a dry patch during 2001-04 as production had declined due to drought in the coffee-growing regions of south India.

Domestic coffee production touched 295,000 tonne before the crisis hit the sector in 2001. A slump in the international coffee market also pulled down prices of domestic coffee.

Low price realisation and fall in coffee exports led to farmers cutting costs by minimising use of fertilisers and pesticides. This neglect, in turn, led to a decline in production.

Earlier this month, the government announced a Rs 48 lakh financial package to the coffee industry to tide over the crisis.

During 2004-05 (April-March), the government disbursed Rs 82 lakh to 8,226 coffee growers to help tide over declining prices.

India exports 80 per cent of its coffee output.

India's main coffee growing regions are Karnataka, Kerala, Tamil Nadu, Orissa and Andhra Pradesh.

The consumption of the beverage is largely concentrated in areas such as Tamil Nadu, Karnataka and Andhra Pradesh.