Tag Archives: K G Rajeev

Coffee Board sets 10-year road map with a target to double country’s coffee production, exports

Coffee Board of India has embarked on a 10-year road map with a target to double the country’s coffee production and coffee exports by 2034, said board chairman M.J. Dinesh on Tuesday (November 19).

“It’s a 10-year mandate starting from 2024 to double our production and also double our exports by 2034. We will also increase the area under production during this period. However, the focus will be on creating best yielding varieties and increasing the production from existing plants through best practices and technology upgradation,” he said.

Addressing coffee growers at the Karnataka Planters’ Association annual conference held here on Tuesday, Mr Dinesh said these activities would include forming 100 FPOs (farmer producer organisations) across the country, of which 60 will be in Karnataka. These FPOs, expected to come up within a year, would create additional momentum for the commodity within the country and in global markets, he anticipated.

What is the offing

He further said that under the 10-year growth plan, the board would also identify 10,000 small coffee farmers who would grow speciality coffee varieties mostly targeted at export markets. “We expect these small farmers to come up with a wide range of speciality varieties that can fetch a premium in the global markets,” he added.

Under the 10-year market expansion plan, the board would also facilitate 10,000 coffee kiosks, mostly managed by women entrepreneurs, to increase the country’s per capita coffee consumption from 107 grams currently to 250 grams in 10 years, he further said.

He also said the board has an ambitious target of nearly trebling the coffee production from 3.7 lakh tonnes in 2024-25 to 9 lakh tonnes by 2047.

Commenting on the possibilities of mechanisation, Mr Dinesh said currently, the growers’ community has been pending a whopping ₹ 1200 crore to ₹ 1300 crore to get the coffee harvested annually through manual labour. This expenditure could be significantly reduced through the use of harvesting machines, and IIT Kharagpur, in collaboration with the Coffee Board, has been working on the prototypes of some such machines.

“Overall, the 10-year plan will certainly give Indian coffees a sizable standing in the global markets. In addition, it will also redefine the coffee landscape of the country,“ he hoped.

KPA chairman K G Rajeev said the grower’s body has made a presentation to the Ministry of Commerce and Industries seeking the inclusion of coffee under PM Fasal Bima Yojana. Presently, coffee farmers are not covered under insurance, while all other plantation crops are covered under insurance. The KPA has also sought assistance from the Govt to promote brand identity for coffee and tea emphasising their quality and unique characteristics. It has also sought exemption or reduction of customs duty on import of agriculture equipment.

source: http://www.thehindu.com / The Hindu / Home> News> India> Karnataka / by Mini Tejaswi / November 20th, 2024

Respite for Indian planters as EU grants time for EUDR compliance

Shade-grown coffee at a Coffee estate in Kodagu district (Coorg), Karnataka. File | Photo Credit: Murali Kumar K.

India’s major plantation sectors such as rubber and coffee have heaved a sigh of relief as the EU Parliament has voted in favour of a proposal by the European Commission to delay the implementation of EU Deforestation Regulation (EUDR) allowing growers, exporters and traders additional time for compliance.

Accordingly, large coffee operators and exporters must meet EUDR regulations by December 30, 2025, while micro and small growers and traders have time until June 30, 2026 to comply, as against the earlier EU set mandatory due diligence procedures and compliance deadline of December 2024.

Being EUDR-compliant indicates a grower’s forest-based coffee produce is legal, and not sourced from any deforested land or unethically cultivated.

Notably, over 70% of Indian coffees are sold in EU countries, and therefore the compliance extension has direct implications on coffee players in India, although India was one among the few countries which grew coffee under two tier thick shade of native trees, say industry players. “Our coffee estates, in addition to coffee and shade trees has diverse flora and fauna. So Indian coffees are most sustainably grown.

In spite of that India opposed EUDR since the compliance does not incentivise sustainably grown coffees,” Coffee Board of India CEO and secretary K.G. Jagadeesha told The Hindu. “Now given that EUDR is a regulation already passed by EU, we have no option but to comply as 70% of Indian coffee exported is going to EU. Coffee Board is developing a platform for assisting coffee producers in India to comply with EUDR. We also welcome the EU decision to extend the deadline,” he added. However, the Coffee Board CEO said EUDR compliance burden on planters and growers would be huge as it required technological and financial resources which won’t be compensated.

Expressing similar concerns K.G. Rajeev, chairman, Karnataka Planters’ Association which represent over 70% of coffee growers in the country, said, ‘‘There are challenges in mobilisation of resources to invest by small and medium sized holdings to be EUDR compliant. Also there are elements of ambiguity. Strict enforcement without clarity on methodology to be implemented may not have desired results. All these may have adverse impact on productivity and profitability of the industry.”

According to Mr. Rajeev, EUDR is a regulation with requirements for due diligence and traceability, which needs lot of data to demonstrate compliance both on ground and documentation. He insisted that Indian coffee couldn’t be compared with coffees in any other geographies as it was predominantly grown under shade.

Coffee activities also encouraged preservation of existing forests which in turn provided habitat for variety of wildlife, avian populations and thus promoted natural biodiversity, he argued. Instead of putting the onus of compliance only on growers, industry institutions and government bodies should help in establishing compliance of regulations, he opined, adding, eco-friendly practices with improved soil health and carbon sequestration aligns with EUDR focus of protection of biodiversity and ecosystem.

Postponement of the implementation of the EU Deforestation Regulation is expected to buoy up the international market for rubber and related products in the short term, said Santosh Kumar, chairman of the Rubber Committee of the United Planters’ Association of Southern India.

“There were ambiguities and concerns in the market. Now that the EUDR will be implemented from 2026, the international market will have a positive impact in the short term,” he said. According to Rubber Board Executive Director M. Vasanthagesan, with the postponement of the regulation by an year, there is more time to prepare the rubber sector. The measures will continue, he added.

The board has entered into an agreement with Hyderabad-based TRST01 as its technology partner to issue due diligence certificates to rubber exporters. “We recently held a stakeholders meeting and will start registering the exporters. We plan to do it in phases, starting with select districts in Kerala. The small-scale exporters will pay an user-fee and register,” he said.

Industry sources said that of the annual production of about 8.5 lakh tonnes of natural rubber, only 4,000 tonnes are exported directly. However, exporters of rubber products will have to source from the growers who are compliant with the EUDR and so the impact will be on the growers.

source: http://www.thehindu.com / The Hindu / Home> Business> Industry / by Mini Tejaswi & M Soundariya Preetha / November 17th, 2024