The Hindu Business Line : Coffee industry wants Govt to support import of improved processing tech

The coffee industry on Wednesday urged the Government to allow and support import of improved processing technology and planting material to boost output levels, which is crucial to support the rising domestic consumption.

"The biggest worry is to meet the growing demand, production should go up," said Mr V.G. Siddhartha, Chairman of Amalgamated Coffee Bean Trading Company that owns the Caf‚ Coffee Day retail chain. Mr Siddhartha was speaking at the inaugural function of the Third India International Coffee Festival in Bangalore on Wednesday.

Consumption in the country that has doubled in the past 15 years, would further double in the next 10-12 years, Mr Siddhartha said. Domestic consumption is inching towards a lakh tonnes growing annually at around six per cent, while the country produces between 2.5-3 lakh tonnes a year.

"Unless production is improved in the next eight years, we will be out of business," Mr Siddartha warned while stating that the industry needs Government support to import technology and better planting material to grow to the next level.

The three-day festival is focussing on boosting domestic coffee consumption, sustainable production, entrepreneurship besides showcasing newer brewing and packaging technologies. About 500 delegates are participating in the event that's also focussing on building skills.

The Coffee Board Chairman, Mr G.V. Krishna Rau, said the Indian market offered tremendous potential for growth with caf‚ growing at around 30 per cent a year. The industry, especially in the value-chain addition, should come together and undertake activities for the growth and not merely remain as pressure groups, Mr Rau said.

There should be no reason for the Indian industry to face any difficulties in terms of selling coffee considering the huge market opportunity for green coffee exports. "That leaves us to focus on improving the production practices," Mr Rau added.

Status paper

At the other end of the city, grower organisations such as the Karnataka Growers Federation and Karnataka Planters Association released a status paper of the industry. Coffee growers were caught in the debt trap as they were unable to clear the piled up debts while facing difficulties in generating fresh capital, said Mr N.K. Pradeep, Chairman of the Karnataka Growers Federation.

"Growers were unable to take advantage of the increased prices because the cost of cultivation has gone up by almost three times in the past decade," Mr Pradeep said adding the Government should immediately come out with debt relief package for the growers.

Mr P.G. Chengappa, Vice-Chancellor of Agriculture University, Bangalore, said the most discerning factor relates to the declining productivity in coffee at alarming levels. "While the robusta output is coming down annually by two per cent, the arabica is coming down by almost four per cent," he said.