The Karnataka government has earmarked a sum of Rs 20 crore to facilitate the implementation of a debt relief package for coffee growers (CDRP), and will work closely with the Centre and the Coffee Board of India.

At the inaugural session of the India International Coffee Festival’s 2014 essay, the southern state’s chief minister Siddaramaiah said that the Centre implemented CDRP 2010 through the coffee board to help the indebted coffee growers.

“As a part of the coffee debt relief package, the state government extended financial assistance to the coffee growers with regard to the loans that were offered by the cooperative banks,” he stated.

“Further, on the commerce ministry’s request, the state government waived off the interest and penalty dues payable by the coffee board, which amounted to Rs 230.47 crore,” Siddaramaiah added.

“India is an important player in the global coffee market. Presently, it is the sixth-largest producer and the fifth-largest exporter of coffee in the world. Karnataka occupies a prime position in India’s coffee production. The area under coffee cultivation is 55%, and it contributes to 72% of the national production,” he informed.

Siddaramaiah said the state government’s focus was on ensuring the well-being of the coffee growers. “There is a serious impact of the climate change on coffee cultivation and addressing this issue is a daunting task,” he stated.

“Going by the change in the rainfall pattern in the recent years, the issue is going to assume a still greater importance in the coming years. During the current period itself, the state has seen an unpredictable and erratic monsoon,” the chief minister added.

“At the coffee blossom stage, the crop production was exected to be high, but it was low owing to the hot and harsh climate, which lasted two months and was followed by incessant rainfall,” he said.

“In order to mitigate the crisis, the government’s rainfall insurance scheme for coffee growers a few years ago has seen us bear 25% of the premium on behalf of the small growers,” Siddaramaiah added.

“The support from our end has been over and above the Centre’s share of 50%. The growers must realise the risk of climate change and subscribe to the protection against the vagaries of rainfall,” he said.

“There is also the issue of pollution control. Coffee pulping activity has been categorised as red by Karnataka’s norms and orange category by the Central Pollution Control Board. All efforts have made to address these issues,” the chief minister added.

source: http://www.fnbnews.com / FnBnews.com / Home> Wide View> Top News / by Nandita Vijay, Bengaluru / Thursday – January 30th, 2014

Bangalore :

Bayar’s Coffee, a gourmet coffee roaster, has bagged the Best Roasters Gold Award-2014 awarded by Coffee Board of India and India Coffee Trust.

“This award is in recognition of Bayer’s Coffee adopting food safety standards, implementation of new technology and use of high quality coffee beans in its blends,” said R Srikanth Rao, Director, Bayar’s Coffee.

source: http://www.thehindubusinessline.com / Business Line / Home> Companies / The Hindu Bureau / Bangalore – February 05th, 2014

Country ships 26,161 tonnes in Jan 2014, versus 18,979 tonnes a year ago

The country’s coffee exports rose 38 per cent to 26,161 tonnes in January on account of firm global prices, according to the Coffee Board of India.

The country had shipped 18,979 tonnes in the same month of the previous year, the data showed.

In value terms, exports rose to Rs 393.70 crore in January this year from Rs 304.70 crore in the year-ago period, even as unit realisation was down at Rs 1,50,496 per tonne.

“Exports remained high as global prices improved and have remained stable since last one month. International prices have gone up on expectation of lower crop in Brazil,” Board’s Chairman Jawaid Akhtar told PTI.

Currently, harvesting is underway in the country and normally small growers try to sell off their produce. This is also one of the key reasons for higher exports, he said.

Akhtar, who also heads International Coffee Organisation (ICO), said the production forecast for Brazil, the world’s largest coffee producer, has been revised downward for this year to below 48 million bags from earlier 58 million bags.

With this development, arabica prices in the global market rose to around 130 cents per pound now from 110 cents per pound a month back, he added.

According to the latest Board data, shipment of robusta coffee rose over 90 per cent to 10,101 tonnes in January this year, from 5,306 tonnes a year ago.

Export of arabica coffee were up over 46 per cent to 9,200 tonnes from 6,290 tonnes in the review period. But export of instant coffee remained down at 6,838 tonnes as against 7,356 tonnes in the same period.

Maximum coffee was exported to Italy (5,675 tonnes), followed by Germany (2,621 tonnes), Belgium (2,109 tonnes), Jordan (1,674 tonnes), Turkey (1,646 tonnes) and Russian Federation (1,309 tonnes) in January 2014, the data showed.

During the April-January period of this fiscal, the country’s total coffee exports increased to 2,41,956 tonnes as against 2,25,570 tonnes in the year-ago period.

Currently, arabica harvesting is almost over in the country, while robusta picking is continuing.

The Board has pegged total output at 3,11,500 tonnes for 2013-14 crop year (October-September), down by 2.1 per cent from 3,18,200 tonnes produced in 2012-13.

source: http://www.business-standard.com / Business Standard / Home> Economy & Policy> News / by Press Trust of India / New Delhi – February 03rd, 2014

As the country’s coffee capital, Bangalore is, after a four-year hiatus, hosting again the India International Coffee Festival (IICF-2014) from Thursday to spread the brew’s aroma.

Held biennially since 2002 by stakeholders, including growers, roasters, traders and exporters with state support, the previous fourth edition of the three-day fest was held in New Delhi in January 2012 to create greater awareness and promote the beverage in non-traditional areas where tea and other soft drinks are consumed more.

“Though about 70 percent of the coffee produced is exported, we are focused on promoting consumption across the country, as the beverage is traditionally sipped more in south India,” Coffee Board chairman Jawaid Akthar told IANS ahead of the trade event.

Growing popularity of cafe chains like Barista, Coasta Coffee, Coffee Day, Dunkin Donuts, Krispy Kreme, Lavazza and Starbucks across metros and cities has made the brew a fashionable drink among the youth, constituting 45 percent of the 1.2-billion people.

“Coffee consumption has been growing five-six percent annually since 2005 after being stagnant for a long time. Bean consumption increased to 115,000 tonnes in 2011 from 50,000 tonnes in 2005 on growth of value-added products and instant coffee,” Akhtar recalled.

Unlike tea, where 80 percent of its production is consumed across the country, per capita consumption of coffee in India is still 90gm as against 12kg in Finland, highest in the world, 6-9kg in Europe, South America and North America, and 4-5kg in rest of the world.

“Though consumption nearly doubled over the last decade, India lags far behind developed countries and even coffee-producing nations in South America due to various factors, including production being limited traditionally to southern states of Karnataka, Kerala and Tamil Nadu,” Akthar pointed out.

Steady economic growth, increasing urbanisation and growing consumer class in the new workforce have, however, redefined drinking habits and made coffee a preferred choice for the refreshing change it brings in a variety of flavours.

“A growing number of youth taking to coffee in metros and cities across the country is an encouraging sign for us. As coffee culture spreads, the trend is turning into a lifestyle, thanks to the advantage of demographic dividend,” Coffee Day president Venu Madhav told IANS here.

Buoyed by the overwhelming response to the flagship fest over the past decade, the Coffee Board of the union commerce ministry and India Coffee Trust of the industry have been able to attract about 60 overseas and domestic firms, over 1,000 delegates and 40 global experts to participate in the event’s fifth edition and showcase products and technologies.

“India is at an inflection point in developing its coffee market. With newer formats, services and new entrants, we see people’s familiarity and affinity with the brew transforming,” Hindustan Unilever executive director Geetu Verma noted on the occasion.

With a view to doubling the per capita consumption to 180gm by this decade, the event will focus on the ‘changing face of coffee’ and experts will deliberate on production and marketing trends, while other stakeholders will hold skill-building workshops on processing, roasting and brewing.

“We have undertaken the mission to develop and propel the Indian coffee sector as a global player and increase its footprint across the country. Towards that end, the fest serves as an ideal platform to train and orient new entrants wanting to be part of the sector,” India Coffee Trust president and leading grower Anil Kumar Bhandari told IANS.

The fest is expected to attract about 10,000 visitors from India and abroad, who will be treated to a variety of flavours ranging from black coffee, cold coffee, iced coffee to spice coffee by global retail chains, brands and instant makers.

“As part of promoting the brew and creating awareness of its health benefits, a coffee quiz I being held first time in the fest. About 106,000 people have participated from across the country in the preliminary rounds to qualify for the quiz final at the fest,” Bhandari said.

Special awards will be given as recognition to best coffees, baristas (the persons who serve coffee in bars), curers, roasters and tasters during the fest.

source: http://www.business-standard.com / Business Standard / Home> News_IANS> Business-Economy / by IANS / Bangalore – January 22nd, 2014