Reduce import duty on coffee, Papua New Guinea to urge India

Papua New Guinea (PNG) will urge the Indian government to reduce the import duty on coffee, which is 110 per cent, High Commissioner of the country to India, Paulias Korni, said on Sunday.

Papua New Guinea, an island nation in the southwestern Pacific Ocean, is known for producing one of the best quality coffees in the world.

"We will be requesting the Indian government to reduce the import duty of PNG Coffee and sincerely hope double taxation (avoidance) agreement between the two countries is completed soon," the high commissioner said.

The two countries are working on a double taxation avoidance agreement.

Claiming that India is deprived of the flavour of PNG coffee, NRI businessman Sujoy Maitra said he wants to set up 300 exclusive outlets of the beverage in the country but the high import duty is a hindrance.

I want to introduce Papua New Guinea coffee in India in a big way. Import duty is now 110 per cent for coffee which is a stumbling block. However, the country is working on this with India," Maitra said.

Reduction in duty will help 20 lakh farmers of Papua New Guinea, he said.

Though some channels sell PNG coffee in India, due to lack of experience zones, awareness about this is minimal among Indians, he said.

"I will set up at least 3-4 exclusive PNG coffee shops in Kolkata before expanding to 300 outlets gradually across the country in order to popularise the coffee in India. We are working on the brand of the coffee shop," said Maitra, who is also associated with the PNG government in framing the double taxation avoidance agreement with New Delhi.

The NRI entrepreneur said he also wants to establish a processing unit in West Bengal or Odisha to minimise the impact of the 110 per cent impact duty.

"As both green and roasted beans attract the same duty, we will be able to save a lot if we process the beans in India, Maitra said.

The price of green coffee beans is almost half of roasted beans, he said.

PNG coffee in this country will cost around Rs 3000-4000 per kg at the retail level, Maitra estimated once it rolls out from the proposed Indian processing unit.