Coffee May Be Placed Under Ogl Scheme

The government is considering to place coffee under open general licence (OGL) import scheme to prevent the current surge in coffee prices.

Inaugurating a one-day seminar on coffee exports organised by the International Trade Centre, Geneva, here yesterday, union commerce secretary P P Prabhu, said OGL would turn out to be the most acceptable solution for the imbroglio.

Prabhu, who is a former chairman of Coffee Board, said with the ratification of the World Trade Organisation (WTO), OGL would become a necessity for many as commodity. Currently, only edible oil is placed under the OGL import scheme.

Other options being considered by the ministry to prevent any further increase in prices following a recent spurt in the international prices, include imposing export duty and capping of exports for some time.

 

Prabhu said the ministry had considered ban on exports of some varieties of coffee for a while. However, the idea was shelved because any step affecting sustained availability of Indian coffee in the international market would mar the name of Indian coffee abroad.

It will really affect the credibility of Indian coffee abroad, he said, adding, the other option of imposing export levy on coffee was being put on hold as the Coffee Board felt that this would affect the long-term export prospects of Indian coffee.

The commerce secretary said the ministry was planning to set up a stabilisation fund for coffee to support the domestic pricing when the international price fluctuations occurred.

The purpose is that the domestic prices should not suffer too much because of international price variations, he said.

He said the ministry also had plans to promote a few Indian brands internationally.

Board chairman Philipose Matthai, said the ultimate solution to the problem lies somewhere between capping of exports and levying on exports.

He said the Coffee Board was preparing a report on the recent market developments incorporating its recommendations, which would be submitted to the ministry within a fortnight.