About the Coffee Board

In the interim, the coffee industry in India has experienced great fluctuations in fortunes. Initially the spread of commercial Arabica plantations was rapid in the hills of present day Karnataka, Kerala and Tamil Nadu states, till 1860’s. Within next few years, major out breaks of pests and diseases like white stem borer, green bug and leaf rust posed a serious threat to the flourishing coffee industry. The continuous ravages of white stem borer and leaf rust spelled doom for Arabica plantations whose area started declining alarmingly. This necessitated introduction of tolerant robusta from Indo-China region towards the 1900’s and initiation of research efforts to search for remedial measures.

During 1940’s, the coffee industry in India was in a desperate state due to the II World war resulting in very low prices and ravages of pests and diseases. At this time, the Government of India established the ‘Coffee Board’ through a constitutional act “Coffee Act VII of 1942” under the administrative control of Ministry of Commerce and Industry. The Board comprises 33 members including the Chairman and the Secretary & Chief Executive Officer. The remaining 31 members represent the various interests such as coffee growing industry, coffee trade interests, curing establishments, interests of labour and consumers, representatives of governments of the principal coffee growing states, and Members of Parliament.

Statutory Committees
The Board functions through six statutory committees which are appointed for one year term each and the functions of each committee as per the Coffee Act are:

1. Executive Committee
Deals with functions specifically assigned to it under the Coffee Rules. In addition to that deals with matters not specifically assigned to the Propaganda, Marketing, Research, or any other committees constituted by the Board.

2. Propaganda Committee
Deals with matters relating to promotion of sale and increasing the consumption in India and elsewhere of the coffee produced in India.

3. Marketing Committee
Deals with coffee marketing scheme as set forth in the Act and Rules.

4. Research Committee
Deals with promotion of agricultural and technological research in the interest of the coffee industry in India.

5. Development Committee
Deals with the measures that may be undertaken for the development of coffee estates.

6. Quality Committee
Deals with all issues relating to the improvement in the quality of coffee produced in India.

Non-Statutory Committees
The Board also had one non-statutory committee viz., Audit Committee as detailed below:

Audit Committee
Deals with the matters relating to Annual Accounts and also study

After pooling was discontinued in 1996, Coffee Board serves as the friend, philosopher and guide to the Coffee sector covering the entire value chain. The core activities are primarily directed towards research & development, transfer of technology, quality improvement, extending development support to growing sector, promotion of coffee in export and domestic markets. The activities of the Board are broadly aimed at (i) enhancement of production, productivity & quality; (ii) export promotion for achieving higher value returns for Indian Coffee and (iii) supporting development of Domestic market.

Organized research in coffee was initiated during 1925 by the erstwhile Mysore Government by setting up the Mysore Coffee Experiment Station near Balehonnur in Chikmagalur district. After formation of the Board the research station was brought under its administrative control. Presently the Research Department of the Board with its headquarters at the Central Coffee Research Institute and five regional stations has a sanctioned strength of 113 scientific personnel and is involved in development of improved varieties with tolerance to major pests and diseases and standardization of technology for improving production, productivity and quality.

The Extension wing of the Board is a vast network of extension units located in all the major coffee growing zones with a sanctioned strength of 278 technical personnel. The extension personnel are involved in dissemination of latest technologies to the growers, organizing capacity building programmes to the growers and farm workers, implementation of various development support, risk insurance and labor welfare schemes of the Board and other activities like crop estimation, crop losses etc.

The Board has a Market Intelligence Unit functioning from its head office at Bangalore. The unit undertakes various activities related to market information & intelligence, market research studies, crop forecasting and coffee economics aspects. The unit also undertakes studies on research related to the coffee trade including WTO issues. Notable publications include the daily market intelligence report and a comprehensive database on coffee (Quarterly). The periodical reports that are already completed include Coffee Consumption in India 2001, 2003, 2005, 2008, 2009 and Attitude towards coffee drinking 2007. The unit coordinated studies on (i) logistics and competitiveness of coffee producing countries (India, Vietnam & Brazil) (ii) MAI Scheme on promotion of Indian coffee exports to Russia and CIS countries (iii) Transaction Costs of Indian Coffee Exports and a manual on coffee retailing. The unit also coordinates the implementation of Price Stabilization Fund Scheme of Govt. of India and Rainfall Insurance Scheme for Coffee growers. The Unit maintains the Board’s official website.

The Promotion Department looks after the promotion of Indian coffee in export market and promotion of coffee consumption in the domestic market.

After liberalization in 1996, the marketing functions were deregulated. The exports are carried out by the Exporters. Hence the Coffee Board plays the role of facilitator and promoter of Indian coffee exports. However, registration of exporters is the responsibility of the Coffee Board. The total number of registered coffee exporters are about 395. Further, the Board issues, under the Section 20 of the Coffee Act, 1942, Permits for Export of Indian Coffee. Additionally, the Certificates of Origin are also issued as per the provisions of the International Coffee Agreement.

Under Export Promotion scheme, exports of Value added coffees in retail packs and export of coffee to high value far-off destinations are incentivized to offset the transaction costs to some extent and enable the Indian exporters to be competitive in the export market. These incentives provide opportunities to expand the footprint of Indian Coffee in higher value destinations like USA, Japan, Canada, Australia, New Zealand etc on one hand and reinforcing presence in our traditional markets i.e., European Union/ Russia and CIS etc. Besides, the Board regularly participates in the major coffee trade shows/ exhibitions held in major consuming countries to promote awareness about quality of Indian coffee to the overseas roasters, traders and consumers. The Board also conducts Flavour of India- The Fine Cup competitions to select fine coffees and expose them to export market.

The Department promotes coffee consumption in the country through 12 India Coffee Houses located in major cities across the country. Besides, the department participates in the national level exhibitions & trade fairs to create awareness about the Indian coffee among the consumers and educates the consumers about positive effects of coffee consumption on human health.

In India, coffee is traditionally grown in the Western Ghats spread over Karnataka, Kerala and Tamil Nadu. Coffee cultivation is also being expanding rapidly in the nontraditional areas of AP and Odisha as well as in the North East states. Coffee is predominantly an export oriented commodity and 65% to 70% of coffee produced in the country is exported while the rest is consumed within the country. Indian coffee industry earns a foreign exchange to the tune of about Rs.4000 Crores. Indian coffee has created a niche for itself in the international market and the Indian Coffees are earning high premium, particularly Indian Robusta which is highly preferred for its good blending quality. Arabica Coffee from India is also well received in the international market. Coffee is an export product with low import intensity and high employment content. This is evident from the fact that more than six lakh persons are directly employed and an equal numbers of individuals get indirect employment from this sector.

The two main varieties of coffee viz., Arabica and Robusta are grown in India. Arabica is mild coffee, but the beans being more aromatic, it has higher market value compared to Robusta beans. On the other hand Robusta has more strength and is, therefore, used in making various blends. Arabica is grown in higher altitudes than Robusta. The cool and equable temperature, ranging between 15 degree Celsius to 25 degree Celsius, is suitable for Arabica while for Robusta, hot and humid climate with temperature ranging from 20 degree Celsius to 30 degree Celsius is suitable. Arabica requires more care & nurture and is more suitable for large holdings whereas Robusta is suitable irrespective of size of the farm. The harvest of Arabica takes place between November to January, while for Robusta it is December to February. Arabica is susceptible to pests & diseases such as White Stem Borer, leaf rust etc., and requires more shade than Robusta.