The Hindu Business Line : Coffee Board to extend sop for value-added units

Warming up to challenges: The Upasi President, Mr D. P. Maheshwari (second from left), greets the Coffee Board Chairman, Mr G. V. Krishna Rau, Chairman, Coffee Board during the Upasi-KPA Coffee Conference in Bangalore Tuesday. The KPA Chairman, Mr C. M. Pemmaiah (right), and Mr Shaji Philip, Chairman of the UPASI Coffee Committee look on. –

Our Bureau

Bangalore, Nov. 4 Coffee growers need to improve their productivity besides looking at adding value to their produce to make the industry sustainable in the long-term, said the Coffee Board Chairman, Mr G.V. Krishna Rau, on Tuesday.

Addressing members of the Karnataka Planters Association, Mr Rau said ultimate sustainability comes from an assured market and the industry should look at the growing domestic market to boost consumption levels.

Taking advantage of the rising espresso culture in the country, roasters and grinders should look at creating new blends by the judicious use of washed robustas, Mr Rau said. “The domestic market presents a huge opportunity to create and test new blends,” he said.

The Indian roasters need to capture the domestic market before someone else comes and does it, Mr Rau said.

In a bid to create the coffee value chain, the Government has come forward to subsidise entrepreneurs planning to set up value-added units. “A 25 per cent subsidy subject to a ceiling of Rs 25 lakh would be provided to those entrepreneurs who would come forward to set up roasting, grinding and packing units,” Mr Rau said. For self help groups and growers collective, the subsidy ranges up to Rs 40 lakh.

Taking cover

Mr Rau asked the growers to take advantage of the instrument to cover weather-related risks. The weather-linked insurance scheme has received a poor response this year with only some seven thousand growers taking the cover as compared to 12,000 last year.

The Coffee Board expects the 2008-09 crop to be lower than the initial post-blossom estimates of 2.93 lakh tonnes as unexpected rains in October has impacted the output. Declining to comment on the fall in output, Mr Rau said the post-monsoon survey to assess the crop was currently on and the actual estimate would be available by the month-end.

Mr Rau maintained that the global economic crisis has so far not impacted the Indian exports. “Unless new contracts come in place, the exports could slow down. However, the indecision on part of buyers may not last long,” he said.