Tag Archives: Karnataka Planters’ Association

Respite for Indian planters as EU grants time for EUDR compliance

Agriculture, Business & Economy, Coffee Board, India (wef. Nov 17, 2021), Coffee News, World Opinion, , , , , , ,

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

Bitter Coffee Prices: A worldwide bean shortage is making coffee lovers sweat espresso bullets

Business & Economy, Coffee Board, India (wef. Nov 17, 2021), Coffee News, World Opinion, , , , , , , , , , , ,

Synopsis

A shortage of coffee beans around the world, in particular due to weather problems in India and lack of supply from Brazil and Vietnam, has led to domestic market prices rising steeply. A well-known coffee trader in Pune, Gandhi’s Coffee, said he had to pass on a Rs50/kg price hike to customers.

Coffee istock

Be it the humbled pulses, vegetables or even exalted gourmet offerings, food prices are now steaming hot, singing consumers’ budgets and making policy decisions tougher for rate-setters while they perhaps sip on coffee. But halt, for even the world of coffee, that beloved elixir that often serves as the morning oracle, is now demanding a premium spot on the rate chart.

Hold onto your mugs, coffee enthusiasts, because it looks like your beloved brew is about to take you on a rollercoaster ride through the wild world of caffeine economics.

This increase in cost is attributed to a shortage of coffee beans on a global scale, particularly stemming from Brazil and Vietnam, coupled with unexpected rains affecting bean quality in India. This unfavorable situation has led to a surge in domestic market prices.

Coffee

Coffee traders, who usually acquire premium beans from Chikkamagaluru in Karnataka, have begun transferring this price escalation to their customers.

Latha Aravind, a resident of Mumbai’s Matunga, said that the cost of usual mixed coffee grounds – a blend of Robusta and Peaberry beans – has risen from around Rs 580/kg to about Rs 640 to Rs 650/kg.

“Prices have shot up and may keep rising,” she told Times of India.

Rajesh Gandhi, owner of Gandhi’s Coffee, a well-known coffee trading enterprise in Pune, said that he had to pass on a Rs 50/kg price hike to the end consumers, as Robusta beans have undergone an approximate 50% price surge, while Arabica beans area dearer by about 15%.

Ajit Raichur, a coffee trader from Kumardhara Traders, said that coffee prices are typically adjusted annually in January. However, this year witnessed an additional price hike of Rs 50/kg across all available bean varieties in July.

GM Dharmendra, a wholesale green coffee (raw beans) trader based in Bengaluru, said he lost 30% to 40% business over the last few months. “Many small coffee retailers in the area have shut shop or they are buying poor quality beans at cheaper rates. Many customers have shifted to instant coffee,” he added.

The coffee-growing region of Chikkamagaluru has borne the brunt of climate change impacts. Rohan Kuriyan, manager of Balanoor Plantations and Industries, reported a 20% decrease in yield due to untimely rainfall during blossom days, compared to the previous year. “The average cost of picking has also gone up. We ended up doing four rounds of selective harvesting instead of the usual two because of the uneven ripening of the cherries,” he added.

“With some positive news about better crop in Brazil, Arabica prices have started softening in the international markets. However, prices are expected to be a bit higher in the domestic market which is growing at double digits because of demand and less production,” Challa Srishant, MD of CCL Products (India) and member of the Coffee Board of India, said.

CCL Products, known for its ‘Continental’ coffee brand, has raised prices from Rs 280 to Rs 360 for a 200g jar within a year, with a further 10% increase planned for the next quarter. Observers in the industry have noted that the diminishing price gap between Arabica and Robusta has inclined consumers towards the smoother and sweeter profile of Arabica beans.

“For planters, operational costs have gone up – right from labour costs to fertilizer and pesticide costs. Coffee prices (Arabica) are a little lower now than they were last year but traders usually buy in bulk and therefore it appears like they are protecting their bottom line in case prices rise again,” Mahesh Shashidhar, chairman of Karnataka Planters’ Association said.

The harvesting season for Robusta beans is six-to-seven months away, and there is uncertainty about the next crop. Karnataka remains a dominant player, contributing 70% of India’s coffee production, while Kerala and Tamil Nadu also cultivate coffee. Industry stakeholders have collectively absorbed various price increases at different junctures. Although prices haven’t been adjusted yet, Amit Bhatta, founder of the specialty coffee brand Aeka Coffee, conceded that an additional 15% to 20% increase could prompt a shift of this burden onto the end consumers.

(with inputs from ToI)

source: http://www.economictimes.indiatimes.com / The Economic Times / Home> India> Business News > Industry> Cons Products> Food / ET Online / August 09th, 2023

Budget 2012: It’s time to wake up and smell the good brews

Business & Economy, Coffee News, Coffee, Kodagu (Coorg), , , , , , , , , ,

The coffee business will get an impetus from the reduction in basic customs duty from 7.5% to 5% on specified coffee plantation and processing machinery. Some say it could even encourage home-brewing of coffee.

Coffee growers, brewers, grinders, roasters, processors, curers and retailers will now be able to import machinery and equipment at a lower cost. It will allow more farmers to import farming equipment like weed cutters, berry pluckers, grading and cleaning machines, sprayers and other plantation machinery. Coffee retailers may be able to import coffee dispensers, vending machines, blenders, shakers etc at a lower cost.

Anil Bhandari, president of the India Coffee Trust, said most of these equipment are imported now and therefore the cut in import duty will give a boost to the coffee landscape in general.

Marvin Rodrigues, chairman of Karnataka Planters’ Association, said the reduction in import duty would complement Coffee Board’s mechanization scheme. “The board has been pushing for mechanization, taking cognizance of the acute labour shortage and wide-spread labour migration in the plantation industry. The only way to survive is to introduce mechanization,” he said.

Bose Mandanna, member of the Coffee Board and a large coffee planter from Coorg, said any reduction in import duty would benefit the entire coffee eco-system, be it growers, roasters, curers or retailers.

The coffee culture in India is becoming stronger. The country’s per capita coffee consumption now is 100 grams, up from just 60 grams three years ago. In England it is 9 kilograms, and in the US 5.5 kg.

“Coffee consumption is growing at 40% per annum in northern states, where it has not been the traditional beverage. The favorable duty structure will also help kick start a home-brewing culture. If coffee brewing machines are available in the Rs 5,000 to Rs 8,000 range, many households will be interested in them. Currently they are well over Rs 10,000,” said Bhandari.

source: http://www.articles.timesofindia.indiatimes.com / Business> Budget 2012> Union Budget / TNN / March 17th, 2012