With global demand, production of coffee need to be increased
Coffee Board and govt did its best in freezing and bailing out defaulters , while issue of shortage of labour can be addressed by mechanization said Jawaid Akhtar Chairman Coffee Board talking to L.Raghunanda of 4th Estate
By telling that except for some parts of the Coffee growing region in the state where it is affected by rain the prospect for output of Coffee is good this season said Jawaid Akhtar Chairman, Coffee Board, India
“The post-monsoon estimation of crop capturing the impact of monsoon rains is under progress and once it is completed by Coffee Board.
“Will have a scenario of what is the damage control measures can be taken by Coffee Board, board however can’t make a flimsy assumption” said Akhtar when 4th Estate contacted him.
Outlining about the global market scenario, when asked what will the demand for market with last year most of the Indian Coffee growers having got good price for coffee.
Because of Coffee production in South America –like Brazil, Columbia, Costa Rica crop having failed in 2010, affected by snow and rain, during which Indian coffee got good market price, only in the face of demand.
Akhtar remarked “Global market can’t be predicted, market sometimes in fact is not moving, however there will be deficit of Coffee compared to global demand in the market.
“Coming to demand with regard to consumption pattern in comparsion with supply, when global coffee production is growing at 1 percent, consumption is growing at 2 percent per annum.
“But if we have to maintain the share of exports and sustain the domestic market requirements, we need to take steps to increase production at about 5 percent annum which is a big challenge
Now what producers worldwide have started taking better care of their crops thereby increasing the chances of increasing overall production by 2012-13, added to this 2012-12 is going to be the on-year for Brazil crop with estimations of all time record crop of about 60 million bags, being their share.
“Vietnam is also expected to deliver a bumper crop of about 20 million bags Columbia which is also reeling under crop setbacks for the past 3 years may also recover by next cropping year.
In India we are expected to get 30 million bags (all 60 kg bag) and produce a high crop, this may bring the surplus
‘As to market my feelings is that which is shared by other experts is that one should be cautious in gauging the market, to much spending by growers, the board just being compelled by some market forces propelled by any means and market getting adverse is worst scenario even to come to terms with.
“This year it is looking rosy, the demand for Coffee is more, the production target need to be enhanced or met while export so far from India according the statistics available till September is is 6,009,017 Metric Tons,
While export from Brazil it is 34,289,152, Metric Tons (MT) Vietnam 16,850,000, MT Columbia 8,064,439, MT Indonesia 5,487,357, MT Honduras 3,866,002, MT Guatemala 3,653, 933, MT Peru 3,556,338, MT Uganda 3,150,090, MT Ethiopia 3,022,385 MT
Approach in freezing of loan and bailing out defaulters
When asked what the progress Board taken in fulfilling the demand of the Coffee growers be it from Small scale and medium scale Coffee growers in freezing of the their loans while they many of them being defaulters, the episode seen from 2004 very seriously.
Akhtar was quick to comment that “ The board has made lot of progress, many small growers and large growers benefited by the freezing of the loans, since 2004
“For freezing of loans when therepresentatives from board, planters association like United Planters Association of South India (UPASI) and Karnataka Planters Association (KPA) also from banks approached government.
“Govt was ready to freeze loans also share of bailing out the Coffee planters the so called the defaulters to banks, where in freezing the loans, the central government has pumped money of Rs 450 crore as measure of bailing out
“But then bank also to help the planters has given loan in tune of Rs 150 crore by which account 1,20,000 coffee planters have benefited by debt relief package and resurgence measure of the board and govt taken jointly
Mechanization way forward to address shortage of labour
What the board move as to address the shortage of labour issues which is very serious issues among all kind of Coffee growers be it in small, medium or large estate “Coffee plantation work in estate can’t go without labour, this is known fact, take the example of Brazil, Costa Rica, Columbia etc., which has the largest area under Coffee.
“There also in those countries though mechanization and research as to come out with new machines and tools to supplement labour shortage is being seriously taken up, board in India has also been saying the same.
“There are machineries where you can get lot of work like in case of spraying in coffee estate, cutting the weed, now event there are technology and machine for drying the coffee seed soon after the coffee is plucked, pulped and then put for dryer.
“Dryer machine has come solace and a boon to many a planters especially in season when there is rain and coffee can’t be dried in drying yard, drying machine available starting at cost of Rs 4 lakhs where every growers has to make benefit.
Akthar mentioned of the Board of giving subsidy to planters those seeking machinery and board is doing it with those plantation machinery manufacturers whereby coffee planters with less than 20 acres will get subsidy of 50 percent while they go for purchasing the machines.
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