Coffee Output to Hit 5 Million Bag Mark, Board in Talks with Canara Bank for Tailor-made Solution - The New Indian Express

Coffee Output to Hit 5 Million Bag Mark, Board in Talks with Canara Bank for Tailor-made Solution

Published: 24th January 2014 06:00 AM

Last Updated: 24th January 2014 01:38 AM

Coffee consumption in the country is growing at a rate of 5-6% annually and the retail sector led by branded chains is growing at 15% per annum, according to Coffee Board Chairman Jawaid Akhtar.

Speaking at the India International Coffee Festival here, he said that the Coffee Board was in talks with Canara Bank to come out with a banking solution tailor made for the coffee sector. The country is one of the leading producers of coffee in the world and production this year is expected to cross 5 million bags mark (3.0 lakh MT) for the fifth consecutive year.

“We had estimated an all time high production of 5.8 million bags but climate change and incessant rains preceded by a long dry spell have led to a 10% loss of crop. We now estimate production of 3.11 lakh MT or 5.18 million bags,” Akhtar added.

Exports of value added coffee has been rising in the past few years and the growth is estimated to be 15.6% every year since 2008-09. In 2012-13, Indian value added coffee exports stood at 94100 MT. “For the period between April and December this year, the performance has already increased by 5% over the same period last year,” Akthar said.

Coffee cultivation in the country, however, faces challenges like the White Stem Borer which attacks Arabica crops. A shortage of skilled manpower in the sector as well as in coffee retail is also affecting the industry. “There is a dearth of experts in evaluation of green coffees for espresso blends. We are collaborating with Trieste Coffee Cluster Italy with the aim of creating specialized manpower in the field, so far 36 participants have been trained in Italy and India,” Akthar said.

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