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COFFEE INDUSTRY IN INDIA

Last Updated on 22nd November, 2024
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Picture Courtesy: https://www.pepperhub.in/coffee-cultivation-in-india/

Context:

The Coffee Board of India has launched a 10-year plan to double the country's coffee production and exports by 2034.

About Coffee Board of India

The Coffee Board of India (CBoI) is an autonomous organization managed by the Ministry of Commerce and Industry.

It was established by a Parliamentary Act in 1942. 

The head office is in Bangalore.

Responsibilities of the Coffee Board

  • Promotion of coffee sales and consumption in India and around the world.
  • Conducting coffee research.
  • Financial assistance for small coffee growers.
  • Providing safe working conditions for workers.
  • Managing the surplus of unsold coffee.

New Plan announced by the Coffee Board

It aims to double India's coffee production and exports by 2034 through a 10-year plan.

It plans to increase output from 3.7 lakh tonnes in 2024-25 to 9 lakh tonnes by 2047.

The board will focus on:  

  • Expanding the area under coffee production.
  • Developing high-yield coffee varieties.
  • Improving output from existing plants through advanced practices and technology.

Farmer Producer Organisations (FPOs)

It will set up 100 FPOs across India, with 60 in Karnataka. These FPOs will increase coffee production and India's presence in global markets.

It will identify 10,000 small coffee farmers to grow specialty coffee varieties for premium export markets.

Domestic Coffee Consumption

The board aims to promote 10,000 coffee kiosks, mainly managed by women entrepreneurs to increase India's per capita coffee consumption from 107 to 250 grams over the next ten years.

Climatic conditions required for coffee cultivation

A hot, humid climate.

Temperatures range between 15°C and 28°C.

Rainfall ranged between 150 and 250 cm.

Well-drained loamy soil with high humus content and minerals such as iron and calcium is ideal for coffee cultivation.

Coffee plants usually grow under shady trees to protect them from direct sunlight and ensure optimal growth conditions.

Arabica (Coffea Arabica) and Robusta (Coffea Canephora) contribute to a large portion of global coffee production.

Coffee Production in India

India became the world's eighth-largest coffee grower in 2022-2023.

 India mainly produces two varieties of coffee: Arabica and Robusta. 

  • Arabica coffee has a higher market value due to its mild, aromatic flavor.
  • Robusta makes up 72% of India's total coffee production.

The coffee industry directly employs over 2 million people.

Karnataka is the largest producer of coffee, with approximately 71% of total production. Kerala contributes roughly 20% of production. Tamil Nadu comes 3rd-largest with 5% production. Orissa and the northeastern states also contribute to coffee production.

Brazil is the world's largest coffee producer, accounting for nearly 40% of the global coffee supply.

India coffee export

According to the Food and Agriculture Organization (FAO), India is the eighth-largest coffee exporter by volume. 

Italy is India's largest export market, accounting for 20% of total bean coffee exports. Europe accounts for 70% of India's exports.  

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Coffee

Source: 

The Hindu

PRACTICE QUESTION

Q.Consider the following statements:

1. Germany is India's largest coffee export destination.

2. India mainly exports Robusta coffee beans.

Which of the above statements is/are correct?

A) 1 only

B) 2 only

C) Both 1 and 2

D) Neither 1 nor 2

Answer: B

Explanation:

Statement 1 is incorrect:

India exports coffee to over 50 countries around the world. The largest importers of coffee from India are Italy, Germany, Belgium, and the Russian Federation, with an average total share of approximately 45%.  

Italy is India's largest export market, accounting for 20% of bean coffee exports.

Statement 2 is correct:

As of August 30, 2024, Indian coffee exports were valued at US$ 1.19 billion (January-August), up 45% year on year from the same period in 2023. Higher exports are being driven by higher prices and increased demand for instant coffee in countries like Russia and Turkey. India mainly exports Robusta coffee beans, a coffee bean species with lower acidity and higher bitterness than Arabica coffee.

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