Overproduction of coffee is putting pressure on the prices and steps like increasing consumption of the commodity will help deal with the excess supply, a senior government official said on Tuesday.
Commerce Secretary Anup Wadhawan said India is a small but significant player in coffee trade in the world.
As a primary product, coffee is always under price stress and has been very susceptible to the impact of production variations.
"Today we have a situation of glut in the world, and situation of overproduction is putting stress on prices. So clearly like all other primary agri sectors, abundance is not always a boon for this sector," he said here at a function on the commodity.
He added that the government is aware of the challenges being faced by the sector globally and in India.
Various institutions like Coffee Board are trying to address them in a systematic manner.
"Farmer faces greatest stress, so we need to strengthen farmer economically and one way will be to take the value addition chain closer to him...The other thing which we need to do is create awareness and promote its consumption, as it will help deal with over production and excess supply," he added.
Speaking at the event, Commerce Minister Piyush Goyal said Coffee Board should look at ways that will make Indian coffee a brand that is recognised worldwide.
The minister suggested that a rupee may be added to every cup of coffee that is bought all over the world by coffee lovers and this can be given to the coffee growers.
India, the world's fifth largest exporter and producer of coffee, will be hosting the World Coffee Conference and Expo in Bengaluru.
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