The Hindu Business Line : ‘Coffee export target will be met’

Bangalore Oct 31 A target of 2.05 lakh tonnes set for coffee exports this fiscal will be met despite shipments trailing currently, according to the Coffee Board Chairman, Mr G.V. Krishna Rau.

“There will be no problem in achieving the export target. So far, permits have been issued for export of 1.24 lakh tonnes,” he said at the Upasi-Karnataka Planters’ Association conference here.

Stating that enough coffee was available for exports, he said production from the next crop would also help meet the target.

According to plantation industry sources, coffee exports are currently lower as growers had held back their stocks anticipating better prices. Besides during monsoon, they do not bring out their produce fearing damage.

“Usually, coffee-growing areas do not receive rains from the north-east monsoon. This time, they are getting rains. Once the rains subside, exports will pick up,” they said.

As per Coffee Board data, provisionally 1.91 lakh tonnes of coffee have been exported from January 1 to October 29 against 2.17 lakh tonnes during the same period last year.

On the other hand, imports for re-exports have also declined. According to the data, imports for re-exports have declined to around 12,000 tonnes from 27,600 tonnes last year.

“Imports for re-exports will be 15,000-16,000 tonnes in a best case scenario. There is no chance of it touching 27,000 tonnes like last year,” Mr Rau said.

One of the problems for lower imports is the issue over fumigating coffee being brought from other countries with methyl bromide. It is mandatory for importers of agricultural products to fumigate them with methyl bromide, which is banned in most of the developed countries as it is seen as harming environment. This, in turn, has particularly led instant coffee manufacturers from importing coffee, fearing loss of business.

“This has, however, helped Indian growers as they have bought more domestic coffee. It has also helped realise better prices for robusta,” Mr Rau said.

Stating that Indian robusta enjoyed an advantage in the global market in terms of quality, he said efforts should be made to undertake research to widen its reach.

Stressing the need for promoting domestic consumption to a level where it would account for 50 per cent of the country's three lakh tonnes production, he said: "There will be no issue of importing coffee once our coffee is used up."

In the 11th Plan, subsidy for infrastructure development such as irrigation would be increased, while interest subsidy on working capital loans would be extended with "appropriate improvement".

Mr C.P. Kariappa, President of Upasi, said the domestic market presented a huge opportunity for coffee but it was yet to be tapped.

Mr M.P. Devaiah of Allanasons Ltd, an exporting firm, said buyers of Indian coffee were threatening to shift to other origins in view of a higher premium being demanded for robustas. In Indonesia, experiments had been carried out with washed robustas and though it was not "so successful" the threat remained, he said.