Lok Sabha Question No. 24 (STARRED), answered on 2018-02-05
Subject: Coffee Market
Ministry: COMMERCE AND INDUSTRY
Asked by: VASANTHI M.

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

## LOK SABHA STARRED QUESTION NO.  24 TO BE ANSWERED ON 05 th  FEBRUARY,2018

## COFFEE MARKET

- *24.   SHRIMATI VASANTHI M.: be

Will the Minister of COMMERCE & INDUSTRY ( वा ͨणÏय एवं उɮयोग मंğी ) pleased to state:

- (a) whether  the  coffee  market  has  slowed  down  due  to  acute  shortage  of  supply  of coffee from coffee producing countries;
- (b) if so, the details thereof along with the reaction of the Government thereto;
- (c) whether the Government has taken any measures to increase the export of Indian coffee keeping in view the short supply of coffee in world coffee market and if so, the details thereof;
- (d) whether these measures taken by the Government have proved fruitful and if so, the details thereof; and
- (e) the details of  the  incentives  being provided  to  Indian coffee exporters  in order to earn foreign exchange?

## ANSWER

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THE MINISTER OF  COMMERCE AND INDUSTRY (SHRI SURESH PRABHU)

- 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.  24 FOR  ANSWER  ON  05 th FEBRUARY,2018 REGARDING 'COFFEE MARKET'.

(a) & (b):  No Madam. As such there is no acute shortage of supply of coffee from coffee producing countries and therefore there is no slowdown in world coffee market. As per International Coffee Organization (ICO) Coffee Market report, the world coffee production has been increasing steadily in recent years.

The production of coffee in the world for the last 4 years is as below:

|   Year |   Global coffee production (in million bags of 60 kg each) |   Global coffee production (in lakh tonnes) |
|--------|------------------------------------------------------------|---------------------------------------------|
|   2014 |                                                     149.08 |                                       89.45 |
|   2015 |                                                     152.11 |                                       91.27 |
|   2016 |                                                     157.69 |                                       94.61 |
|   2017 |                                                     158.78 |                                       95.27 |

ICO Data

(c)& (d): Government of India through the Coffee Board is undertaking various measures to boost the  export  of  coffee,  which  inter-alia  includes  conducting  promotional  activities  highlighting uniqueness of Indian coffee in the foreign markets, reinforcing presence in the traditional markets, lending promotional support to Indian coffee exporters in their marketing efforts and also providing financial assistance for export of high value and value added coffee.  The details are as under:

- (i) Participation in International Coffee Conferences / events
- (ii) Organising Buyer Seller Meets
- (iii) Branding of Indian Coffee through publicity campaigns/ Media publicity
- (iv) Organizing Flavour of India -The Fine Cup Award Competition to select fine coffees and expose them to export market
- (v) Organising India International Coffee Festival

The  efforts  taken  by  the  Central  Government  have  significantly  contributed  in  increasing  India's coffee exports. Export Data of the last 4 years is given below:

|   Year | Exports Quantity (Tonnes)   |   Exports Value (Rs.Crores) |   Exports Value (million US $) |
|--------|-----------------------------|-----------------------------|--------------------------------|
|   2014 | 2,87,352                    |                     4835.52 |                         793.89 |
|   2015 | 3,06,021                    |                     5155.8  |                         807.19 |
|   2016 | 3,58,409                    |                     5524.9  |                         822.33 |
|   2017 | 3,86,361                    |                     6233.25 |                         958.3  |

Note: Data includes re-exports by 100% Export Oriented Units (EOUs) under Advance Authorization scheme.

- (e):  Coffee  Board  gives  the  following  financial  assistance  to  Indian  Coffee  Exporters  to  mitigate freight disadvantage for export of coffee in important far off destination / markets.
- i. Assistance  @  Rs.2/kg  for  export  of  high  value  coffee  to  the  far-off  destinations  viz.  USA, Canada, Japan, Australia, New Zealand, South Korea, Finland and Norway.
- ii. Assistance @Rs.3/kg for export of value added coffee in retail packs as India Brand.

Further, the coffee exports are also covered under Merchandise Exports from India Scheme (MEIS) and Duty Drawback schemes of the Government of India.

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