Lok Sabha Question No. 103 (STARRED), answered on 2016-07-25
Subject: Enactment of New Act on Coffee
Ministry: COMMERCE AND INDUSTRY
Asked by: PRATHAP SIMHA

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

## LOK SABHA STARRED QUESTION NO. 103 TO BE ANSWERED ON 25 TH  JULY, 2016

## ENACTMENT OF NEW ACT ON COFFEE

## *103.  SHRI PRATHAP SIMHA:

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

- (a) the names of the countries which are the main buyers of Indian Coffee;
- (b) whether the Government proposes to repeal the Coffee Act, 1942 and bring new Coffee Bill, 2016 and if so, the details thereof and the reasons therefor;
- (c) whether the Government has sought comments from the public/stakeholders in this regard and if so, the details thereof along with the response of the Government thereto;
- (d) whether  coffee  planters  associations/  stakeholders  have  requested  the  Government  to exempt  plantation  from  the  levy  of  Central  Goods  and  Services  Tax  (CGST)  under  the proposed dual GST structure  and  if  so,  the  details  thereof  along  with  the  reaction  of  the Government thereto; and
- (e) whether India's coffee output is expected to drop due to poor rains and hot temperatures hitting plantations during the crucial flowering stage and if so, the remedial measures taken or proposed to be taken by the Government in this regard?

## ANSWER

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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. 103  FOR ANSWER ON 25 TH  JULY, 2016 REGARDING 'ENACTMENT OF NEW ACT ON COFFEE'

- (a) The  Main  buyers  of  Indian  Coffee  are  Italy,  Russian  Federation,  Germany, Belgium and Turkey which account for more than 50% of coffee exports from India.
- (b) The existing Coffee Act was enacted more than seventy years back. Over the years, the role of the Coffee Board has changed and many provisions of the existing Act have become redundant, especially after abolition of Coffee Pooling System in 1996.  The  present  activities  of  the  Coffee  Board  are  more  focused  on  facilitating increase in production, quality upgradation, research and market promotion. Accordingly, it has been proposed to repeal the Coffee Act, 1942 and enact a new legislation, the Coffee Bill, 2016.
- (c)      The  draft  Coffee  Bill,  2016  was  prepared  based  on  consultations  with representatives from industry, growers, traders, exporters and various departments of Central and State Governments. It was posted on the websites of the Department of Commerce and Coffee Board for seeking further suggestions from stakeholders. The suggestions received were regarding the control of coffee industry, definition of coffee and coffee estate, cognizance of offence under the Act etc which are being examined.
- (d) The  Coffee  Exporters  Association  have  represented  to  Department  of Commerce  for  adding  green  coffee  beans  to  the  exempted  list  in  the  proposed Goods and Services Tax. The matter is under consideration.
- (e) It has been estimated that there is a likelihood of decline in coffee production in 2016-17 by 8 % as compared to that in 2015-16 due to lack of timely rains and high temperature during the crucial flowering stage. The Coffee Board is providing focused support for water augmentation and extension activities to coffee growers under  the  'Integrated  Coffee  Development  Project'.  Further,  coffee  growers  have been  covered  under  the  Rainfall  Insurance  Scheme  for  Coffee  under  which  the growers are given compensation for crop losses due to erratic rainfall.

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