Coffee industry in retail push

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| IICF 2007, a platform created by growers, traders and equipment makers, is supported by the Coffee Board of India and will be held in Bangalore from February 23 to 25. |
| Indian coffee growers are, at present, heavily dependent on exports which are prone to price fluctuations. Hence the board is devising ways to increase domestic consumption to insulate growers from global price fluctuations. |
| "Despite the rising domestic consumption, the coffee industry is still dependent on exports as 70 per cent of the production is exported. The country accounts for only 4 per cent of the world coffee output and is ranked seventh globally," said G V Krishna Rau, chairman, Coffee Board of India. |
| The recent spread of the coffee-cafe culture across major cities is said to be boosting consumption, but volume offtake of these chains is relatively small. |
| "Companies such as Starbucks and illycafe can increase market presence and consumption levels. And on our part we can showcase our strength that we do not just grow Arabica and Robusta but also cultivate coffee of 13 different regional varieties and three speciality coffees," said Rau. |
| As a build-up to the festival, Roberto Morelli, director of the university and illycaffe coffee culture manager will share his vision on the Coffee University at Trieste, Itally. |
| Starbucks' operations and trading director Colman Cuff will be asked to conduct classes or workshops on coffee differentiation. |
| Researchers from UK's Bradford University will reveal tools they are developing to establish traceability of differences in Indian coffees from region to region and estate to estate. Mario Cerutti, director of the leading Italian chain Lavazza, is expected to hold talks on quality and sustainability. |
| "We are inviting global majors to be part of the exercise to boost domestic consumption," said Rau. Domestic consumption has grown annually by 5-6 per cent in the past few years to around 80,000 tonne, at present. Rising disposable incomes generated by the rapidly growing new economy is seen as a key growth driver. |
| The board has plans to increase domestic consumption to around 1.2 lakh tonne by the end of 11th Five Year Plan in 2012, up from the present level of 80,000 tonne. |
| At the same time, the board is also trying to increase coffee output to 3.2 lakh tonne from the present production levels of 2.75 lakh tonne. |
First Published: Feb 21 2007 | 12:00 AM IST