Coffee Board embarks on expansion in new areas

Board completes survey in 6-7 districts of Himachal Pradesh for taking up pilot schemes to plant coffee, also identifies hilly areas near Darjeeling

The Coffee Board is embarking on a two-pronged strategy of increasing coffee production and consumption in the country. In an effort to increase the domestic production, which is hovering around 300,000 tonnes annually for the last few years, the Board is identifying new areas for plantations in the country, a top Board official said.

"The coffee consumption in the country has grown to about 90 grams per capita per year from 60-70 grams about 12 years ago. About 70 per cent of the domestic production is exported. By keeping the exports at the same level, we want to increase the domestic production by introducing new areas. We have identified new areas in West Bengal and Himachal Pradesh for coffee plantation during the 12th plan period," said Jawaid Akhtar, chairman, Coffee Board.

He said the Board has completed survey in 6-7 districts of Himachal Pradesh for taking up pilot programmes to plant coffee and it has also identified hilly areas near Darjeeling in West Bengal for planting coffee.

However, in the traditional areas of Karnataka, Kerala, Tamil Nadu and Andhra Pradesh, the Board is trying to increase the productivity, he told reporters here today.

The increase in productivity is being done through replanting of old trees. Considering the menace unleashed by white stem borer in Arabica plantations, the Coffee Board is collaborating with Indian Council of Agriculture Research for undertaking mission mode programme to control borer in the plantations. It is also collaborating with World Coffee Research for exchange of Arabica varieties, Akhtar said.

Coffee consumption has increased by 2.8 per cent annually in the last five years as compared to 2.4 per cent in the previous five-year period, Akhtar said quoting studies done by International Coffee Organisation. The consumption has grown consistently in emerging economies including India, he said.

The average consumption is 4-5 kgs per capita per year in most of the developed countries. However, when compared to some of the developed countries, the consumption of coffee in India has been very low, he said.

For example, Finland has a highest per capita consumption of 12 kgs per annum. In India, the per capita consumption is just about 90 grams as coffee is predominantly consumed in South India and Northern parts of the country consumes Tea, he said.

For the year 2013-14 crop year, the domestic coffee production target is revised downwards to 311,000 metric tons, following the post monsoon estimates. The crop, which was in very good condition during the post blossom period, was heavily damaged due to excess monsoon rains in several growing regions, he said.

"The coffee industry in India is doing very well with exports going up by 33 per cent compared to the same quarter in 2012. In terms of rupee realization, we are up by 27 per cent and in terms of dollar realization, we are better by 8 per cent. However, we are focused on promoting coffee consumption within the country," he said.

The in-home and out of home consumption of coffee is on the rise is a pointer to the strong trends in the domestic market.

Coffee consumption in the country has registered a steady 5-6 per cent growth per annum while the organized sector attributed to around 15 per cent growth. Overall coffee consumption in the country is pegged at 120,000 tonnes per annum, he said.

"The rising popularity of cafe chains like Cafe Coffee Day, Barista Lavazza and Costa Coffee especially with the younger generation has made coffee drinking fashionable. A highlight of the coffee industry in India is the growth of value added products and instant coffee over the last 4-5 years," Akhtar added.

The Coffee Board in association with India Coffee Trust is organizing India International Coffee Festival from January 21-25 in Bangalore.