The Hindu Business Line : Girijan Co-op plans to enter coffee market

The Girijan Co-operative Corporation (GCC) is planning to procure coffee grown by Girijans in the Eastern Ghats of Visakhapatnam district in the Paderu area and export it, according to Mr D.S. Redya Naik, State Minister for Tribal Welfare.

He was speaking at a press meet here on Tuesday after reviewing the activities of the GCC, with Mr Prem Chand, the Vice-Chairman and Managing Director of GCC, and other officials.

The minister said the State Government would invest Rs 140 crore during the Eleventh Plan period in the Paderu area for expanding coffee cultivation to 60,000 acres more and “as there is a good market for organic coffee abroad, the GCC will also enter the market.”

He said that at present Naandi Foundation was engaged in the activity, but at a later stage the GCC would also enter the market.

Mr Naik said the Union Government, the Coffee Board and the State Government would work together, along with voluntary organisations such as Naandi Foundation, to promote coffee cultivation in the agency (tribal) areas of the district, a non-conventional area.

Cold storage

He said the GCC was building a cold storage in the vicinity of Visakhapatnam city in Anandapuram mandal to store the produce procured from Girijans. “On a two-acre granted by the district administration, we are building the cold storage at a cost of Rs 4.7 crore. It will be of great help to Girijans. The work will start later this month,” the minister said.

Soap unit

He said the GCC was also establishing a semi-automated soap manufacturing unit in the Araku valley of Visakhapatnam district. This would result in a cut in production cost by Rs 3-4 per soap and make the soaps more competitive in the market. At present, the GCC was selling neem, aloe vera and turmeric soaps. He said efforts were also being made to sell the soaps and honey to the defence establishments such as military canteens.

Financial position

Mr Naik said the GCC which had achieved Rs 210 crore turnover last year had set itself the target of Rs 225 crore for the current fiscal, and so far, the turnover amounted to Rs 150 crore.

He said earnest attempts were being made to cut down on costs and to get loan (Rs 10 crore per annum) from a central agency at a rate of 4 per cent, instead of 7 per cent as at present. This, he added, would make a considerable difference to the GCC.

At present, he said the cumulative losses of the GCC amounted to roughly Rs 16 crore, but they would be wiped out. “These losses are the result of the heavy interest burden. They have no reflection on the functioning of the organisation,” he added.

Mr Prem Chand said that the GCC could not function like a commercial organisation and the mandate given to it was to strive for the welfare of Girijans. “Therefore, too much should not be read into the losses. Nevertheless, we are striving to wipe them out,” he explained.

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