Lok Sabha Question No. 20 (STARRED), answered on 2017-07-17
Subject: Shortage of Supply in World’s Coffee Market
Ministry: COMMERCE AND INDUSTRY
Asked by: SHOBHA KARANDLAJE

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA STARRED QUESTION NO. 20 TO BE ANSWERED ON 17 th  JULY, 2017

## SHORTAGE OF SUPPLY IN WORLD'S COFFEE MARKET

## *20.   KUMARI SHOBHA KARANDLAJE:

Will the Minister of COMMERCE & INDUSTRY ( वािणÏय एवं उɮयोग मंत्री ) be pleased to state:

- (a) whether shortage of supply in the world's coffee market is likely to continue for the 3rd consecutive year with the output of robusta, sliding to a level not seen since 2012;
- (b) if so, the details thereof and the reasons therefor;
- (c) whether the Indian coffee exports have increased in view of the global shortage;
- (d) if so, the details thereof; and
- (e) the measures taken/being taken by Government to boost the production and export of coffee along with the financial and technical assistance provided to coffee growers during the last three years?

## ANSWER

okf.kT; ,oa m|ksx jkT; ea=h ¼Jherh fueZyk lhrkje.k½ ¼Lora= izHkkj½

THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)

- a) to  e):  A Statement is laid on the Table of the House.

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## STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF LOK SABHA STARRED QUESTION NO. 20   FOR ANSWER ON 17 TH  JULY, 2017 REGARDING 'SHORTAGE OF SUPPLY IN WORLD'S COFFEE MARKET'.

- (a)  &  (b):    Yes,  Madam.  There  is  a  short  supply  of  coffee  in  the  world  coffee  market  and  the production of Robusta in 2016 was recorded to be the lowest since 2012. The details of Robusta Coffee production as per International Coffee Organization(ICO) for the last 5 years is as under:

(in Metric Tonnes(MT))

|    2012 |    2013 |    2014 |    2015 |    2016 |
|---------|---------|---------|---------|---------|
| 3560760 | 3718020 | 3754320 | 3789900 | 3385140 |

Global production estimates of Coffee for the current year is not available in the data source of ICO.

The  lower  production  is  mainly  attributed  to  drought  in  Vietnam  and  Brazil  and  adverse  weather conditions in Indonesia which are the largest Robusta coffee producers in the world.

- (c) & (d): Yes, Madam. Indian coffee exports have increased during last three years from 2,72,323 tonnes in 2014-15 to 3,56,445 tonnes in 2016-17. The total quantum and value of coffee exported from the country during the last three years are as under:
- (e):    Central Government, through the Coffee Board, is promoting production and export of Coffee by  implementing  'Integrated  Coffee  Development  Project''.    The  scheme,  inter  alia,  includes extending  financial  and  technical  support  to  boost  the  production  and  export  of  coffee  through activities as detailed below:
- (i) Financial  support  for  replantation/expansion,  creation  of  water  harvesting  and irrigation infrastructures and mechanization of coffee estate operations.
- (ii) Technical  assistance  through  research  and  extension  by  organising  capacity building programmes, village level group meetings, conducting field demonstrations etc.
- (iii) Supply  of  seeds  /  planting  materials  of  improved  high  yielding  disease  /  pest tolerant varieties, eco-friendly pest control tools like pheromone traps, broca traps, bio agents, analysis of soil for scientific nutrient management, etc.
- (iv) Financial incentives towards export of high value green coffee to far off destinations  viz.,  USA,  Canada,  Japan,  Australia,  New  Zealand,  South  Korea, Finland and Norway and for export of value added coffee in retail packs as India brands.
- (v) Participation in International and/or specialized fairs and exhibitions.
- (vi) Organising Buyer Seller Meets.
- (vii) Brand promotion activities and Media publicity.
- (viii) Organising Flavour of India - The Fine Cup Award Competition, India International Coffee Festival and presenting Export Awards annually.

| Year     |   Quantity (MT) |   Value (Rs. Crore) |
|----------|-----------------|---------------------|
| 2014-15  |          272323 |                4807 |
| 2015-16* |          318059 |                5176 |
| 2016-17* |          356445 |                5650 |

The details of financial  and  technical  assistance  provided  to  coffee  growers  during  the last three years is given in Annexure-I& Annexure-II respectively .

## Annexure-I

| Coffee Board : Physical and Financial Achievement during 2014-15,2015-16 and 2016-17    | Coffee Board : Physical and Financial Achievement during 2014-15,2015-16 and 2016-17   | Coffee Board : Physical and Financial Achievement during 2014-15,2015-16 and 2016-17   | Coffee Board : Physical and Financial Achievement during 2014-15,2015-16 and 2016-17   | Coffee Board : Physical and Financial Achievement during 2014-15,2015-16 and 2016-17   | Coffee Board : Physical and Financial Achievement during 2014-15,2015-16 and 2016-17   | Coffee Board : Physical and Financial Achievement during 2014-15,2015-16 and 2016-17   | Coffee Board : Physical and Financial Achievement during 2014-15,2015-16 and 2016-17   | Coffee Board : Physical and Financial Achievement during 2014-15,2015-16 and 2016-17   |
|-----------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|
|                                                                                         | 2014-15                                                                                | 2014-15                                                                                | 2015-16                                                                                | 2015-16                                                                                | 2016-17                                                                                | 2016-17                                                                                | Total                                                                                  | Total                                                                                  |
|                                                                                         | Physical                                                                               | Financial                                                                              | Physical                                                                               | Financial                                                                              | Physical                                                                               | Financial                                                                              | Physical                                                                               | Financial                                                                              |
| 1. Development Support extended to growers of Traditional Coffee growing areas          | 1. Development Support extended to growers of Traditional Coffee growing areas         | 1. Development Support extended to growers of Traditional Coffee growing areas         | 1. Development Support extended to growers of Traditional Coffee growing areas         | 1. Development Support extended to growers of Traditional Coffee growing areas         | 1. Development Support extended to growers of Traditional Coffee growing areas         | 1. Development Support extended to growers of Traditional Coffee growing areas         | 1. Development Support extended to growers of Traditional Coffee growing areas         | 1. Development Support extended to growers of Traditional Coffee growing areas         |
| Replantation / Expansion ( Ha.)                                                         | 1931                                                                                   | 3.8                                                                                    | 1581                                                                                   | 4.12                                                                                   | 2388                                                                                   | 7.63                                                                                   | 5900                                                                                   | 15.55                                                                                  |
| Water Augmentation / Quality Upgradation                                                | 4588                                                                                   | 9.25                                                                                   | 4769                                                                                   | 14.1                                                                                   | 4162                                                                                   | 12.7                                                                                   | 13519                                                                                  | 36.05                                                                                  |
| Support extended towards purchase of machinery for estate operations ( No. of Machines) | 9835                                                                                   | 11.7                                                                                   | 5494                                                                                   | 5.84                                                                                   | 3636                                                                                   | 4.3                                                                                    | 18965                                                                                  | 21.84                                                                                  |
| Interest subvention provided to growers (No. of Growers)                                | 1994                                                                                   | 3.76                                                                                   | 1102                                                                                   | 1.43                                                                                   | 541                                                                                    | 2.35                                                                                   | 3637                                                                                   | 7.54                                                                                   |
| 2. Coffee Development Programme in NTA                                                  | 2. Coffee Development Programme in NTA                                                 | 2. Coffee Development Programme in NTA                                                 | 2. Coffee Development Programme in NTA                                                 | 2. Coffee Development Programme in NTA                                                 | 2. Coffee Development Programme in NTA                                                 | 2. Coffee Development Programme in NTA                                                 | 2. Coffee Development Programme in NTA                                                 | 2. Coffee Development Programme in NTA                                                 |
| Expansion / Consolidation in NTA(Ha.)                                                   | 3683                                                                                   | 3.9                                                                                    | 4449                                                                                   | 7.16                                                                                   | 4003                                                                                   | 3.36                                                                                   | 12135                                                                                  | 14.42                                                                                  |
| Quality Upgradation ( Baby pulper/ Drying yards (Nos.)                                  | 1797                                                                                   | 3.9                                                                                    | 1313                                                                                   | 7.16                                                                                   | 1248                                                                                   | 3.36                                                                                   | 4358                                                                                   | 14.42                                                                                  |
| 3.Coffee Development Programme in NER(In Ha.)                                           | 3.Coffee Development Programme in NER(In Ha.)                                          | 3.Coffee Development Programme in NER(In Ha.)                                          | 3.Coffee Development Programme in NER(In Ha.)                                          | 3.Coffee Development Programme in NER(In Ha.)                                          | 3.Coffee Development Programme in NER(In Ha.)                                          | 3.Coffee Development Programme in NER(In Ha.)                                          | 3.Coffee Development Programme in NER(In Ha.)                                          | 3.Coffee Development Programme in NER(In Ha.)                                          |
| Expansion / Consolidation in NER (Ha.)                                                  | 855                                                                                    | 2.56                                                                                   | 486                                                                                    | 2.52                                                                                   | 523                                                                                    | 3.51                                                                                   | 1864                                                                                   | 8.59                                                                                   |
| Quality Upgradation/ Water Augmentation in NER (No.of units)                            | 301                                                                                    | 2.56                                                                                   | 66                                                                                     | 2.52                                                                                   | 175                                                                                    | 3.51                                                                                   | 542                                                                                    | 8.59                                                                                   |
| 4.Export Promotion                                                                      | 4.Export Promotion                                                                     | 4.Export Promotion                                                                     | 4.Export Promotion                                                                     | 4.Export Promotion                                                                     | 4.Export Promotion                                                                     | 4.Export Promotion                                                                     | 4.Export Promotion                                                                     | 4.Export Promotion                                                                     |
| Support extended towards export of Value added coffee (Tonnes)                          | 6918                                                                                   | 2.78                                                                                   | 11095                                                                                  | 3.36                                                                                   | 9580                                                                                   | 4.76                                                                                   | 27593                                                                                  | 10.9                                                                                   |
| Support extended towards export of High Value coffee to far off destination (Tonnes)    | 8764                                                                                   | 2.78                                                                                   | 8871                                                                                   | 3.36                                                                                   | 11502                                                                                  | 4.76                                                                                   | 29137                                                                                  | 10.9                                                                                   |
| 5.Support extended under value addition (No. of units)                                  | 11                                                                                     | 1.83                                                                                   | 13                                                                                     | 2.19                                                                                   | 20                                                                                     | 1.85                                                                                   | 44                                                                                     | 5.87                                                                                   |
| Total                                                                                   |                                                                                        | 39.58                                                                                  |                                                                                        | 40.72                                                                                  |                                                                                        | 40.46                                                                                  |                                                                                        | 120.76                                                                                 |

## Coffee Board : Technical Assistance given during 2014-15,2015-16 and 2016-17

|   Sl. No. | Technical Assistance                                                         |   2014-15 |   2015-16 |   2016-17 |    Total |
|-----------|------------------------------------------------------------------------------|-----------|-----------|-----------|----------|
|         1 | Supply of improved seed materials (in Tonnes)                                |      19.8 |      18.2 |      18.7 |     56.7 |
|         2 | Analysis of Soil / leaf / Agro-chemicals (Nos.)                              |    8614   |    9388   |    6757   |  24759   |
|         3 | Supply of Clones (Nos.)                                                      |   61400   |   56400   |   91200   | 209000   |
|         4 | Supply of Eco-friendly pest control traps (Pheromone and Broca traps) - Nos. |   49100   |   53215   |   62685   | 165000   |

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