Branding of the Indian Arabica coffee is on the cards with the ministry of commerce moving forward from the concept stage. The ministry has discussed the concept with all stakeholders from the industry and is planning to launch a common brand for Arabica by the end of March this year.
"The Coffee Board has discussed the concept with all the stakeholders and is firming up the common brand for the Indian Arabica. We have earmarked a budget of Rs 3 crore initially this year to launch the brand on an international scale," said J S Deepak, additional secretary, ministry of commerce.
He said, the ministry's desire is to create a vision plan for the Indian Arabica. Important stakeholders like Tata Coffee and Cafe Coffee Day can create a very strong regional brand for Indian coffee.
"We are working on creating a strong regional brand like Darjeeling Tea. Attempts are being made to popularise Coorg coffee or any other strong regional brand name for the Arabica coffee which could be given a GI (Geographical Indication)," he told Business Standard on the sidelines of the India International Coffee Festival which was inaugurated today.
The ministry is also ready to extend support from the India Brand Equity Foundation (IBEF) in creating the common brand name, he said.
India Brand Equity Foundation (IBEF) is a trust established by the Department of Commerce, Ministry of Commerce and Industry, Government of India.
IBEF's primary objective is to promote and generate international awareness of the Made in India label in markets overseas and to facilitate dissemination of knowledge of Indian products and services.
India produces around 100,000 tonnes of Arabica coffee annually and the production has been declining over the last few years mainly due to rampant attack of white stem borer.
Earlier, speaking at the inauguration of IICF 2014, Deepak said, the ministry of commerce has earmarked Rs 140 crore for the research and development initiatives for the coffee sector in the 12th Five Year Plan period. The total allocation for coffee during the plan period is enhanced to Rs 960 crore, he said.
"The Coffee Board needs to find a solution to the white stem borer during the 12th Plan period. It should use the best brains available for research in this area and find out a solution," he said.
He said, the International Coffee Organisation (ICO) has to provide more focus on the stagnated coffee prices in the international markets that had remained same for three decades.
India's coffee production for 2013-14 is pegged at 311,000 tonnes, a decline of 2 per cent over 315,500 tonnes in the previous year.
The drop in production was attributed to dry months in coffee-growing areas in April and May, and unprecedented monsoon rains thereafter. Karnataka accounts for 72 per cent of the coffee grown in India.
"I request the International Coffee Organisation to give more focus to the interest of coffee producers. The prices prevalent in 1982 were almost same in 1997 and it remained at this level even in 2012. This is matter of concern as the countries that faced currency devaluation saw distress among coffee growers and the industry," Deepak said.
Speaking on the occasion, Roberio Oliveira Silva, Executive Director, ICO said low prices, climate change, pests attack, low productivity and access to finance have been the challenging issues for sustainable growth of the global coffee market.
"This needs urgent and effective attention from all of us. Only growers and industries cannot solve the problem and it needs a combined work from diverse and complex coffee supply chain in bringing the bean to the cup," he stated.
Silva said new markets were developing in the emerging economies while major markets saw stagnation.
"India had a role in development of international coffee market as its Arabica variety was in great demand in Europe and North America and commanded premium," he said.
Karnataka Chief Minister Siddaramaiah inaugurated the event. Coffee Board Chairman Jawaid Akhtar made a presentation on Indian coffee.
