India is in-principle a member of ACPC and a formal signing of the agreement will be carried out by the Indian High Commissioner Lalit Mansingh at the ICO meet which began on Tuesday. The ministry of commerce has already paid 35,000 to ACPC towards an annual membership fee.

Ranganath told The Financial Express that as produce from a member country, Indian coffee would receive an international exposure thorough this campaign. ``This is a quid pro quo for India for being a part of ACPC apart from funds that can be received from international funding agencies to carry out various coffee-related projects,''he said.

Ranganath said to face any unforeseen market situations, India would demand a coffee export quota of 2 lakh tonnes from ACPC, which would be almost equivalent to the country's exportable coffee surplus. Getting a sizeable export quota from ACPC would help India in times of any unprecedented market situations, he felt. The ACPC quota would also work as a yardstick for India if something happens with the International Coffee Organisation (ICO) (if it ceases to exist or re-introduces export quotas). He likened the ACPC membership with an insurance policy which served both as a rescuer in the face of bad times and an investment otherwise. The membership was expected to take India out of the market isolation that the country experienced during 1967 to 1989 with an export quota hovering only between 35,000 and 39,000 tonnes. The ICO quotas went away in the later part of '89.

Ranganath indicated that ICO might re-introduce quota system as coffee prices were falling considerably. Normally, the ICO quotas are introduced based on the glut in the market after consulting member countries.

According to Ranganath, currently, 70 per cent of the coffee producing countries are part of ACPC and non-members included Vietnam, Mexico and Gautimala. However, he said Mexico could easily sell its produce as it is geographically close to US (the largest consumer of coffee in the world).

Ranganath said the ACPC membership would bring in funds to India from international financial institutions and agencies. These funds would be used towards generic promotion activities to increase domestic consumption of coffee, stem-borer control schemes and leaf-rust projects. These projects are expected to cost $9 million to the country. Commenting on the apprehension in various quarters of the industry on India joining ACPC, he said it would not curb the country's exports. He also dismissed fears of excessive regulation by the Coffee Board on exports.

PTI adds: Coffee production in the country has been projected at a record 2.83 lakh tonnes in the ensuing crop year beginning October, despite excess rainfall experienced in some of the growing areas in Karnataka, a top Coffee Board official has said.

"We held a meeting of (the coffee board's) extension officers last week. After surveying all factors, we have arrived at the conclusion that 1999-2000 coffee production will be an all time high 2.83 lakh tonnes," Coffee Board chairman SV Ranganath said over phone from Bangalore.

The anticipated production is against 2.30 lakh tonnes produced this year and initial projection of 2.85 lakh tonnes based on coffee bud and blossom estimates. While arabica production was expected to be 1.20 lakh tonnes, Robusta output would be 1.63 lakh tonnes, he said.

This year, Arabica production has been put at 97,000 tonnes and that of Robusta 1.33 lakh tonnes. However, the board would come out with a final estimate in early October. "We will also come out with wood(bud) estimates for the year 2000-1," he said. Coffee trade, however, expected the production to be around 2.90 lakh tonnes, while the plantation sector, which usually contests the estimates, is yet to make any estimate.

Asked about the effect of rains on the crop, Ranganath said any loss to the crop on account of excess rainfall had been taken into account. "It is an usual phenomenon. Every year there is loss to crop due to rains," he said.Usually, crop loss due to rains was around 3-4 per cent annually, the Coffee Board official said, adding the board's estimates had been arrived at after taking all these factors into account, he added. "I have cross examined all extension officers on the impact of rain and only then we have arrived at this figure," he said. Coffee Futures Exchange of India president and leading exporter Ashwin Shah said rains could have caused at the most a loss of 5,000 tonnes. "There could be some loss due to rains. But it is a usual one," he said.

Ranganath said the board should be seen making accurate projections given the fact that coffee trade in the country had been deregulated.

"Any inaccuracy will be seen pinching overseas buyers. There are buyers who place orders based on our estimates. Therefore, we have to be correct," he said. In the regulated era, coffee grown by growers had to be pooled with the board, which decided on the quantity to be exported and consumed domestically. Since 1993, the regulation has been relaxed and from 1996 growers have been given total freedom in selling their produce.