Coffee Panel Told To Expedite Report

The Union commerce ministry has asked the coffee board sub-committee, set up to evolve a domestic price policy for the commodity, to expedite its report, official sources said We have sent a reminder to the coffee board on June 23 to expedite the report soon, sources in the ministry said.

The coffee board set up the sub-committee after retail prices of the commodity scaled record heights early this year. Prices for the popular Arabica variety range around Rs 200 a kg at present.

Coffee prices have been hiked five times since Feb 24 by Rs 10 a kg each time following a rise in international prices and an anticipated fall in domestic production.

 

A sub-committee member told PTI that its report, if delayed any further, would be of little significance since coffee prices in the international market had started declining.

International prices, which have spurted since January last owing to production shortfall in leading coffee producer nations and low stocks with traders, have decreased to $1.78 per pound this week from a high of $3.38 a pound during first week of May.

Indias coffee production during the current crop year (July 96-June 97) has been put at 2.05 lakh tonnes by coffee board but traders say it was around 1.8 lakh tonnes only. The anticipated production is against the 2.3 lakh tonnes produced during 1995-96 crop year.

The sub-committee was reported to have met twice but on both occasions it received lukewarm response as only a few members attended the meetings.

Another meeting has been slated for June 27 but going by the mood in the industry, again only a few members are expected to attend it, sources said. The current prices are likely to be firm only till July 15, when the winter in Brazil ends. After that, international prices are expected to decline, the sources said.

Asked if prices in India would be reduced, they said already the best grade coffee was being sold at Rs 200 a kg when the input prices for the retail sellers was around Rs 240 a kg.

Still, any decrease in price would depend on the growers attitude, the sources said.

The Union commerce ministry has warned of severe action against the coffee industry following steep hike in prices.