Coffee Board told to script plan to boost global sales

The government has directed the Coffee Board to outline a plan to improve its reach into global markets such as Russia, Italy, Spain and Japan.

Addressing a press conference on Tuesday, Jairam Ramesh, Union minister of state for commerce, said the main element of the new plan will be to create awareness and popularise India coffee in these countries.

In global markets, coffee export is facing stiff competition from Vietnam. Besides other plantation crops such as pepper and tea are also capturing the Indian market, he added.

With the break-up of the former Soviet Union, the country lost two-thirds of the market. In Italy and Yugoslavia Vietnam has taken over a chunk of India's marketshare with its higher productivity and lower cost. The Coffee Board has thus been told to identify ways of making costs more competitive, said Ramesh.

To showcase Indian coffee and to boost consumption, the commerce ministry plans to hold an India International Coffee Festival. The first of such festivals is planned for February 2007.

Ramesh on Tuesday also met members of the United Planters Association of South India, the Karnataka Planters Association and Karnataka Growers' Federation to chalk out long-term and short-term measures for revival of the Indian plantation sector.

The Board initially identified social infrastructure such as housing, electricity, schools, road and health for plantation labourers as key measures that could life the sector.

Currently, The board is working on a 50:50 cost sharing between the government and the industry.

"Of the 50 per cent government cost, it will be equally borne by the Centre and the state," said Ramesh.

In order to develop an alternative to coffee cultivation, the Coffee Board has identified growing of medicinal plants. For this, the National Medicinal Plants Board has been notified and has been asked to prepare a blue print.

"By promoting diversification and by taking up medicinal plants cultivation, growers, especially organic coffee cultivators, can reduce the risk posed by over-dependence on coffee," said Krishna Rau, chairman of the Coffee Board.