Bangalore, Nov 5: The Coffee Board has formulated a Rs 180 million ($4.15 million) export promotion plan to boost of the exports of coffee, that are suffering due to low international prices, a senior board official said.The official said the export promotion plan proposed the creation of a distinct identity for Indian coffee through modern packaging, branding and improving shipments.
"The plan which has been drafted by senior industry officials will soon be submitted to the commerce ministry for its approval," the official, who did not want to be identified, said. "The plan seeks funding of Rs 180 million from the ministry's India Brand Fund which funds the promotion of the country's products abroad," he said.
India's coffee exports have been hit by poor quality and low global prices in the last two years, resulting in lower earnings despite a growth in volumes. he country produces about 4 per cent of world's coffee output, out of which it exports nearly 75 per cent. But Indian coffee has been selling at discounts of 15 to 20 cents per lb since 1998. During 1998/99 (April-March) India exported an all-time high volume of 2,07,266 tonnes of coffee compared with 1,79,059 tonnes in the year-earlier period.
Focus on quality, branding
"The bane of our shipments now is that they are shipped in bulk and in jute bags and treated like just another commodity," the Coffee Board official said. "But before enhancing the image, we will ensure that the quality of coffee we ship improves." He said this would be done through a series of measures such as inspection of shipments, certification for meeting quality standards and stamping such shipments with a logo, which was being developed.
He also said industry officials would interact with roasters of leading importing countries such as Germany, Italy and Poland and try to cater to their specific needs. "We need to do this if Indian coffee has to stop being a low value filler in their blends and become a premium grade," he said.
India would also invite teams of leading global roasters to visit its coffee plantations and processing centres to highlight improvements in growing and processing standards, he added.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.