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Our Bureau

BANGALORE, Nov. 11

THE Union Government is looking at long-term measures for stabilising the incomes of small growers, said Ms Lakshmi Venkatachalam, Chairperson, Coffee board, has said.

The Government is also planning more systematic intervention to bail-out growers whenever prices are depressed. The entire scheme will be subscriber-based and self-sustaining, Ms Venkatachalam said, speaking at the annual Karnataka Planters Association-UPASI Coffee Conference in Bangalore on Monday.

The Coffee Board is also working out a commodity hedging mechanism with the help of Canara Bank. The board is looking for World Bank assistance for this scheme and hopes to pilot test it by next year.

The global coffee production for 2001-02 is now estimated at 117.3 million bags, and consumption at 108.2 million bags. With the market set to face a fourth consecutive year of surplus, Ms Venkatachalam warned growers that they would have to "learn to live with these prices".

Based on recommendation of the McKinsey report, she also suggested reducing costs through improved productivity, shifting to arabica in some areas, and maintaining consistency of quality in exports, she said. The Tenth Plan outlay for the sector has gone up almost three times to Rs 300 crore, she said.

Indian exports of coffee fell by 13.5 per cent in 01-02 from the previous year. Unit prices realised dropped by 12 per cent from Rs 55.76 per kg in 2000-01 to Rs 49.185 per kg in 2001-02.

Estimates for the production for the year 2002-03 now stands at 28,000 tonnes, reflecting a 6 per cent drop from the previous year, mainly because of weather-related factors, and to an extent reduced farm inputs. Exports in 2002-03 are estimated to go down further to 22,0000 tonnes from the previous year's 213,472 tonnes.

It's `think coffee' now

BANGALORE: After "drink more coffee" it is "think coffee" time. The Coffee Board is launching a `Think Coffee' campaign, as part of its domestic market expansion project.

Basing the campaign on research that has linked coffee consumption to mental performance, the Coffee Board plans to target young office goers and students. "We want to tell them that coffee keeps you alert, helps you concentrate and improves brain activity," Ms Lakshmi Venkatachalam, Chairperson, Coffee Board, said. Students preparing for exams and office goers feeling run down will be encouraged to drink coffee.

"We want to encourage out-of-home coffee drinking with this campaign. Later, this might translate into coffee consumption at home," Ms Venkatachalam said.

The board is also promoting the lesser-known aspects of Indian coffee in the export market. It is trying to change the image of Indian coffee for the better and is advertising the fact that coffee in India is handpicked, shade grown and is eco-friendly.

Within the country, the Coffee Board is promoting consumption in non-traditional markets. However, it is also looking for support from corporates. "When we promote filter coffee consumption in the North, it has to be backed by supply of coffee powder to that region and that is something that only the corporates can offer," she said. — Our Bureau

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