According to Jawaid Akhtar, chairman, Coffee Board of India, the country will witness record growth in exports this year, too, like the last financial year. In an interview with Nayanima Basu, he says the board is now focused in promoting Indian coffee to the newer markets of Japan and Korea. Excerpts:
You recently said you are focusing on increasing exports to the Japanese and Korean markets.
More than 70 per cent of the coffee produced in the country is exported. Considering the limitations for significant increase in production in the short term, India needs to augment its export earnings from the available supplies by riding on the core strength, its quality.
This is possible by constantly reinforcing our presence in traditional markets in the European Union and simultaneously strengthening visibility in high value markets like the US, Canada, Japan, Australia, New Zealand , the Scandinavian countries and emerging markets like Korea, which have been giving high value for our exports.
Japan has traditionally been a quality-conscious and high-value market for coffee. Korea is emerging as an important consuming country, willing to pay for quality coffee.
The Coffee Board is making concerted efforts with the Specialty Coffee Association of India to engage the coffee industry of these countries, by taking big contingents of exporters to these to participate in their trade fairs and organise buyer-seller meets.
What is the condition of export in the traditional markets?
The European Union has been our traditional stronghold, having 58 per cent share of our export in 2010-11. Total consumption is Europe has not come down despite the crisis there. We issued total permits for 245,000 tonnes during April-December worldwide, compared to 214,000 tonnes during the same period last financial year.
Output in India is estimated to rise 6.7 per cent this year due to the favourable climate in major producing states. What are your export estimates for this financial year?
Last year, production was estimated at 302,000 tonnes. This year, the post-blossom estimates indicate production may increase by 6.7 per cent to 322,250 tonnes. Finalisation of the post-monsoon estimation is in progress and the preliminary results indicate that there may not be significant change. Indian coffee has achieved encouraging results in the export market in the last few years. The current year, 2011-12, is also recording promising growth and in fact we may exceed the target significantly. We hope higher production would be able to feed the export targets, meet domestic demand and also provide reasonable return to producers.
India exported a record 294, 362 tonnes valued around $750 million last financial year. How much volume do you foresee this financial year?
Coffee exports reached their highest during 2010-11, both in volume and value terms. The current year may also see promising growth, where export permits during April-November were for 228,578 tonnes, valued at Rs 3,139.6 crore. Generally, actual export is less than the quantity and value for which permits are issued. Going by the trend of issue, we are confident that export will be pretty high in 2011-12 as well.
What is the Board doing for the betterment of growers? Are you planning any incentives?
The Board is involved in providing strategic support to coffee growers and other stakeholders for the past seven decades. Apart from technology support, the Board extends development support to various activities such as replantation, water augmentation, quality upgradation, mechanisation etc, for improving the production, productivity and quality of coffee produced by growers. The government has also helped the sector with loan waivers, interest waiver and rescheduling to ensure sustainability of coffee enterprises which suffered huge losses in the aftermath of the coffee crisis. Recently, the Board also started encouraging use of small machinery in farm operations.
What are your long-term aims under the 12th five-year Plan?
Emphasis will be given for reviving the fortunes of arabica coffee, whose share in the country’s production has declined over the years due to low productivity, contributed by ageing plantations and increased pest and disease attacks.
Development support towards replantation, expansion, water augmentation, quality upgradation and mechanisation will continue with a wider focus during the Plan, to enable growers to improve production and productivity.
Do you see consumption of coffee rising in India?
Consumption in the country was growing at an average of two per cent every year till 2000 (18,400 tonnes in 1951 to 60,000 tonnes during 2000). It has picked up and is growing at five-six per cent annually. Presently, consumption is 100,000 tonnes.
Coffee has changed from being a traditional beverage, consumed mainly in south India, to a youthful and trendy beverage with a national presence, consumed in several forms and retail formats. This strong trend in the domestic market provides avenues for enterprise development through value addition and creation of skill-based jobs.
