Category Archives: Business & Economy

Weak economy spurs demand for low-priced coffees

Drop in prices hurts realisations even as shipments see 18% growth in March quarter

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Bengaluru :

Sluggish economic conditions in part of Europe and West Asia is triggering demand for the low-priced coffees such as the robusta cherry and instant varieties as consumers in these regions are seen shifting to the cheaper beverage, exporter said.

The trend is reflected in the increased shipments of these varieties from India over the past three months.

Higher shipments
“We are noticing a trend that buyers in Europe and the Gulf Countries are seen buying more of cheaper coffees than in the past,” said Ramesh Rajah, President of the Coffee Exporters Association.

The shift in preference in the Gulf nations could be influenced by the drop in oil prices.

Permits rise
Total coffee permits issued by the Coffee Board for the January 1-March 24 period were up around 18 per cent at 90,274 tonnes (76,567 tonnes in corresponding last year), primarily driven by a surge in shipments of robusta cherry and the instant variety.

Permits issued for robusta cherry were up 32 per cent at 40,618 tonnes (30,756 tonnes), while for instant coffee shipments including that of re-exports, the permits issued were up 13 per cent at 25,299 tonnes (22,416 tonnes) for the period.

For the robusta parchment or the washed robusta, which command a premium in the world market, the permits issued dropped around 23 per cent to 5,822 tonnes (7,595 tonnes).

Changing preferences
However, the premium variety arabica parchment saw an increase in demand at 15,099 tonnes (11,837 tonnes).

Coffee Board officials also attributed the increase in demand for robusta cherry and instant coffee to some extent to the shift in consumer preferences to cheaper varieties in markets such as Europe.

An early harvest of robustas has also contributed to the increase in shipments as more coffee was available for exporters with growers, especially the smaller ones, preferring to sell their produce as prices continued to remain volatile.

An official with a global trading house attributed the jump in the January-March quarter shipments to an early robusta crop this year and also to the front-loading of sales by the producers, wherein growers sold off their produce as soon as it was ready to sell a few weeks ago.

But now, the market arrivals have slowed down as growers – especially the larger ones – are beginning to hold back their produce, the official said.

The harvest of robusta is complete and the growers, especially the Arabica producers are looking forward the blossom showers in the week ahead.

Export realisations
Though the March quarter shipments have been good, the earnings are likely to be under pressure due to lower prices.

The per tonne realisation has dropped considerably to ₹1,55,077 in March quarter as compared to ₹1,77,660 in the corresponding period last year.

Exporters are a bit sceptical of sustaining the growth trend in shipments in the year ahead.

“The near term order books are good, but there is slackness in the medium to long-term,” Rajah said.

The Coffee Board has pegged the 2015-16 crop at 3.5 lakh tonnes – a seven per cent increase over the previous season’s 3.27 lakh tonnes.

source: http://www.thehindubusinessline.com / Business Line / Home> Economy> AgriBusiness / by Vishwanath Kulkarni / Bengaluru – March 28th, 2016

O! Success So Sweet!

When things around you are falling apart, there are only a few who not only rise to the occasion, but also create opportunities for themselves and others. Having been able to support the tribals, rural folk, and small farmers with her brand Nectar Fresh, Chayaa Nanjappa is one such example.

Chayaa’s single-minded efforts have established her honey brand – Nectar Fresh – in a highly quality-conscious premium segment. While serving high-end hotels and resorts, she (her brand) has created employment and better earning opportunities for tribals and marginal farmers. In fact, she has come a long way since the launch of the brand in 2007, and now she receives orders from importers from different parts of the world who want to buy honey from her company. She is also hopeful that Nectar Fresh products will soon be decked up at Walmart stores.

The honey market is a crowded space with big brands at play, so what made a small Khadi & Village Industries Board-backed rural enterprise from Mandya (in Karnataka) to earn a name for itself in both domestic and international markets? According to her, it is their obsession for quality that has made the brand stand out. The global exports of natural honey is about $2.3 billion (CY2014), of which India’s share is just $77 million, which is a minuscule 3.5%. Nanjappa saw the potential for growth. When she started in 2007, total honey production by her company was just 20 tonne per month. That has now increased to 200 tonne per month. And the company has plans to further increase the production to 400 tonne per month in the near months.

Earlier, she would export through agents, but presently, the company has started exporting under its own brand name. That most of her new orders are accounted for by referrals from existing, happy clients is a sign of her company’s product quality.

In the domestic market too the company has positioned itself strategically at few select outlets like Himalaya Drugs and Kerala Ayurveda, and serves brands like Kitchens of India, etc., to stay away from the clutter.

Though the company has expanded its product portfolio with jams, sauces, and coffee, honey still remains the mainstay. Her efforts in the field of rural empowerment and giving tribals and marginal farmers opportunities to sell their produce in the global market has earned her many state and national-level accolades, including the Priyadarshini Award by Federation of Indian Women Entrepreneurs (FIWE). She proudly says that Nectar Fresh has become the first brand in India to use women-owned logo of WEConnect International, a US-based women entrepreneurs’ body which supports brands that stand for quality. Chayaa is a social capitalist who deserves much praise.

TDB: What was life like before you started Nectar Fresh, and what made you take up entrepreneurship as a profession?

Chayaa Nanjappa (CN): I started this business at a point in time when I was going through a tough phase in my life due to personal reasons. I got into the business because I wanted to do something to keep myself busy and be independent, and create employment to help other needy people. And that’s how Nectar Fresh Foods came into existence. Initially, I started it as a small scale unit in Bangalore, but later, I moved to Mysore.

TDB: How did you manage the initial funding? Why honey and food products only?

CN: As my place of origin is Coorg, I looked at products which can be related to the region. Long ago, Coorg was known for its honey but, gradually, the honey production fell to shockingly low levels. So, I decided to source best quality honey from different parts of the country and market it under the brand name Nectar Fresh in small quantities. I underwent a week-long training on honey production at the Central Bee Research and Training Institute in Pune and learnt technicalities involved in the production and storage of honey.

I had lost my father and had no one to look up to for guidance. I took some financial help from my mother. I prepared a project report based on which I got a loan of Rs.10 lakh from a bank. I also got a lot of support from the Khadi and Village Industries Board.

TDB: Having started with just a corpus of Rs.10 lakh is very interesting and inspiring. What was your initial approach?

CN: I market my products on my own across India; I have no budget for advertisements. My approach was to do something new and give a unique positioning to my product. There was a monopoly of honey brands from Germany and France in the high-end segment of the hospitality industry in India. No Indian brand was catering to the segment that includes high-end hotels and resorts. I maintained product quality from the very beginning. Quality and world-class packaging helped us to break the monopoly of foreign brands. To counter MNCs, we expanded our product line, and now supply an entire basket of products including honey, jam, sauce and coffee.

TDB: Tell us something about your export markets. And how exactly did you foray into them?

CN: Until recently, we were exporting through agents but are now exporting directly across the globe. We are enhancing production capacity of honey from 200 tonne per month to 400 tonne per month to meet demand from export markets. We also have plans to produce 50 tonne of jam per month. Well, ITC was the first organisation that recognised us for our quality, and thus, I got my first order from them. The association with ITC gave me the confidence to approach other premium hotels. My export orders started coming when people started noticing our products in some of the premium hotels in India. The positioning of our products in these hotels helped in image building. Two months ago, we started exporting directly under our brand name.

TDB: You have ventured into a highly competitive segment, both in the domestic as well as overseas markets. How do you deal with competition?

CN: Our products stand for quality, and it’s an integral part of our brand. Nectar Fresh has grown due to our ethics in business. Because of positive word of mouth, farmers have remained loyal to us, and for the last five to six years we have held on to the same group of suppliers. We source directly from farmers and with the growth of the company, farmers have also benefitted. We may be a small-scale unit, but from the batch code, we can trace a product from the level of procurement to final despatch. That’s how we maintain consistency in quality in the entire process. It’s because of the quality of our products that even people from US and Germany come to our small unit and buy from us.

TDB: What role has your family played in your success? Were there initial apprehensions?

CN: As I have already mentioned, I started my business when I was going through a rough phase in life, and due to that my mother had her apprehensions. But still, she encouraged me. My close friends supported me a lot too. Rajappa, my business partner, has been a big, big, big support.

TDB: What would be your advice to all, especially women, who want to take a plunge into entrepreneurship in general, and exports and imports in particular?

CN: Work hard. If you are really focused, you can achieve the impossible. My new unit in Mandya in Karnataka is a 100% rural enterprise, but I haven’t availed any subsidy for it. The system is such that it will take its own time. Instead of wasting time and energy on it, if you focus it on your work, you will get better results. My past experience made me realise this, and this time I applied for a loan from a bank and set up my unit without taking any subsidy. There are many opportunities for those living in urban areas, but the necessities of rural women need to be addressed. They can make a big difference to exports. They have world class products around them, but they don’t know how to take them to market.

source: http://www.thedollarbusiness.com / The Dollar Business / Home> Cover Story> March 2016> Power Woman> O Success, So Sweet / by Sisir Pradhan / March 20th, 2016

Planters feel relieved as Karnataka scraps agriculture income tax

Bengaluru :

In a relief to the beleaguered coffee, tea and rubber growers in Karnataka, the State government has proposed to abolish the agriculture income tax with effect from April 1, 2016.

“There is a long standing demand of growers of coffee, tea, rubber and other plantation crops to abolish Agricultural Income Tax. I propose to abolish Agricultural Income Tax with effect from 1st of April 2016,” Karnataka Chief Minister Siddaramaiah said presenting the State Budget for 2016-17 here on Friday.

With this, Karnataka, the largest coffee producer, has followed the neighbouring Tamil Nadu, which had abolished agriculture income tax way back in 2004. Even Kerala has provided a relief to the planters community by exempting the income tax for a year in 2016-17.

Karnataka’s latest move will provide relief to about two dozen companies such as Tata Coffee and Bombay Burmah Trading Corporation that operate coffee, tea and rubber plantations in the State besides thousands of individual coffee growers. Plantation companies had to pay a 35 per cent tax on their net income in the State and the total outgo in the State is estimated at around ₹20 crore.

“It is a good news for the plantation industry and will give us a boost,” said Baba PS Bedi, Chairman of the Karnataka Planters’ Association (KPA). Bedi further said the proposed move would provide some relief for the plantation sector that is becoming unviable, reeling under the impact of declining realisations and rising input costs.

Though Karnataka had suspended the agriculture income tax for individual growers way back in 2004 when the coffee prices had touched a 100-year-low of around 0.40 cents per pound, the growers had to wait for the notification every year exempting the income tax. “It was a kind of Damocles Sword hanging on our head. Now, with this budgetary announcement, we need not have to worry at all,” said N Bose Mandanna, a large grower at Suntikoppa.

K Kurian, Managing Director of Devon Plantation & Industries Ltd, said the move would help the plantation companies to re-invest in developing their estates in the long run.

Besides providing a higher allocation of ₹4,344 crore to the agriculture department, Karnataka is targeting to distribute ₹11,000 crore in agriculture loan to 23 lakh farmers in the State. To implement the new crop insurance scheme during 2016-17, the State has earmarked ₹675.38 crore.

source: http://www.thehindubusinessline.com / Business Line / Home> Markets> Commodities / by The Hindu Business Line Bureau / March 18th, 2016

Prasad Bidapa in Pakistan fashion week

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Prasad Bidapa is doing a fashion show. What’s new, you might ask. Well this one is in Pakistan.

And naturally, Bidapa is thrilled.`Shaan-e-Pakistan: Kya Dilli Kya Lahore’, organised by Huma Nassr, is an annual three-day event in Lahore intended as a plat form for the singers, dancers and designers of both nations.

And Bidapa has company not just from the fashion industry but from the music industry as well, such as popular singer Atif Aslam.

Now this is a cross-border collaboration worth strutting his stuff for.

source: http://www.timesofindia.indiatimes.com / The Times of India / News Home> Entertainment> Kannada / Bangalore Mirror Bureau / March 23rd, 2016

50 cr to give facelift for Kodagu roads

Madikeri :

The Rs 50 crore sanctioned for Kodagu will be used exclusively for the development of rural roads in the district, said the CM. He confirmed that the medical college in Madikeri will begin admissions from 2016-17.

Kodagu was a separate state and during that period many records lay in the then chief commissioner’s office. To computerize all these documents, the chief minister has sanctioned Rs 1 crore.

The agricultural income tax exemption for coffee will continue along with tea and rubber. Kodagu Chamber of Commerce president B N Prakash said that the chamber welcomes the amount sanctioned for road development. tnn

source: http://www.timesofindia.indiatimes.com / The Times of India / News Home> City> Mysore / TNN / March 19th, 2016

Kodagu on cusp of progress as intl airport takes shape

Flight trials conducted at facility in Kerala, 58 km from Virajpet.

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Flight trials were undertaken on Monday at the newly constructed international near here.

Though the facility is not in the district and is part of the neighbouring state of Kerala, it is expected to provide an impetus to the economic development of the district, especially in the tourism sector.

The airport has come up at Mattanur (Kannur district), just 58 km from here. Though the official inauguration is slated for a later date, preparations for the trial run were being made for the past one month. Work on the runway was undertaken, overcoming many hurdles.

The construction of 2,400-metre of the proposed 3,050-metre runway has been completed in the first phase. Monday’s trial run was conducted on 1,500 metres of the runway.

Commercial operations are likely to begin in September this year, if all goes well, sources in the government and the Kannur International Airport Authority said.

The opening of the airport will put pressure on the Virajpet-Kannur interstate-highway that passes through Virajpet town, the Virajpet-Hunsur highway and the Virajpet-Madikeri highway. But work on upgrading and expanding these stretches is still in the initial stages.

The construction of the airport is expected to cost a total of Rs 1,892 crore and the project was approved when C M Ibrahim, who hails from the State, was the union minister for civil aviation in the Deve Gowda government at the Centre. At present, the Mandakalli airport in Mysuru is the nearest to the district (100 km from Virajpet). The other nearby airports are the Mangaluru airport (160 km from Virajpet) and the Kempegowda International Airport in Bengaluru (250 km from Virajpet).

The new airport at Mattanur is also expected to help exports of the commercial crops grown in the district. It will also be useful for those pursuing studies and seeking employment abroad, besides giving a boost to cultural exchanges with foreign countries. The real estate sector in the district is likely to witness a boom too.

source: http://www.deccanherald.com /Deccan Herald / Home> State / Virajpet(Kodagu) / DHNS – March 01st, 2016

Transport dept told to prepare traffic plan for Madikeri

Deputy Commissioner Meer Anees Ahmmed said a report on the construction of a private bus stand, submitted by a private institute, has been submitted to the Transport Department for verification and to elicit opinion on the report.

Chairing a meeting of the Regional Transport Authority (RTA) here on Wednesday, he said the department has been asked to prepare a comprehensive traffic plan for the city. Action will be taken after obtaining opinion from the department. “It will be impossible to build the private bus stand at RMC Yard on Mysuru Road. The RMC land should be used for the purpose it is meant for,” he remarked.

Raising the issue, Private Bus Owners’ Association President Hosur Ramesh Joyappa said the shifting of the private bus shelter is being discussed from the last several years. It has not seen any progress so far. It will be better to identify land on Mysuru Road for the construction of the bus shelter, he added.

Autorickshaw Drivers’ Association President Medappa said autorickshaws have been permitted to travel 10-km from the district headquarters. However, the residents of remote villages which do not have transport facilities, depend on autorickshaws for transport. Hence, the permission for the travel from headquarters should be be increased to 20-km, he urged.

Reacting to it, the DC said permission will be granted only after verifying the areas where permission needs to be given and it will be known in the next RTA meeting.

The private bus owners said they are facing a lot of inconvenience due to lack of a bus shelter for private vehicles in Kushalnagar. At least, two private buses should be allowed to park near the KSRTC Bus Stand. Objecting to it, the KSRTC officials said private buses should not be allowed to be parked within 100-metre radius of the bus stand. The DC said he will inspect the site before taking a decision.

Bus service sought
Vanachalu residents said people, labourers and students are facing difficulty without any proper bus services to the village. A KSRTC bus should be operated on the stretch. The meeting agreed to start a bus service to Vachanalu.

The KSRTC officials said private buses cannot operate on Kushalnagar and Guddehosur State Highway. The private buses can operate via Siddapura and Harangi route, they added.

Privte Bus Owners’ Association Secretary Nanda Poonaccha said the police fail to receive complaints in the police station.

Reacting to it, the DC said that complaints can be filed online or to the SP’s office.

source: http://www.deccanherald.com / Deccan Herald / Home> District / Madikeri – DHNS / February 25th, 2016

Mysuru – Kushalnagar train service to be reality

MP Pratap Simha gets the project approved

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Mysuru :

This Railway Budget will surely bring smiles on the faces of residents of Mysuru and Kodagu. Reason: the much-awaited 85-km railway line project between Mysuru and Kushalnagar will finally take off with the Railway Ministry giving its green signal in the budget.

Speaking to SOM from New Delhi, Mysuru-Kodagu MP Pratap Simha said that Kodagu was the only district in the State that did not have rail connectivity and he was glad that he was able to finally get the approval for this long pending project.

The Railway Ministry, which had earlier conducted a feasibility test, has sanctioned Rs. 667 crore for the project and the works is expected to begin soon.

source: http://www.starofmysore.com / Star of Mysore / Home> General News / February 25th, 2016

Polling peaceful in Kodagu, Chikkamagaluru districts

The zilla and taluk panchayat elections held in Kodagu and Chikkamagaluru districts were peaceful on Saturday.

The polling received a lukewarm response in plateau region in Chikkamagaluru district till afternoon.

Twenty-three per cent polling was recorded at Karthikere in Kuruvangi zilla panchayat constituency at 11 am. The polling percentage similar at Kalasapura in Ambale constituency at 11.30 am.

A 95-year-old Jayamma was carried to the polling booth by her son Siddalingappa at Pillenahalli.

The labourers left for their work after exercising their franchise in Malnad. The political parties had even arranged vehicles to ferry the voters to the polling booths at a few places.

District Congres Committee President D L Vijaykumar exercised his franchise at Balegadde polling station.

Report from Kodagu

Elections were held in 29 zilla panchayat and 50 taluk panchayat constituencies in Kodagu district.

A total of 117 candidates are contesting in the zilla panchayat election and 169 candidates are in the fray in taluk panchayat election.

Technical glitch was experienced was an elctronic voting machine at Athooru polling station at Somwarpet taluk. There was brisk polling since morning in the district.
Women and men were seen standing in long queues to exercise their franchise at Kedakal, Suntikoppa, Guddehosur, Nanjarayapatna, Kambibane, Chettalli, Nelyahudikeri, Siddapura, Ammathi, Moornadu, Mekeri and other areas.

Ninety-six-year-old Ponnamme arrived to exercise her franchise at Kedakal polling station.

Krithika, who excercised her franchise for the first time at Suntikoppa, said, “I am feeling happy that I have excercised my franchise for the first time. Voting is a sacred right.” Jayalakshmi, a first-time voter, expressed similar views at Guddehosur.

People were seen discussing about the election in groups outside 100 metre radius of a few polling booths in the district.

Deputy Commissioner Meer Anees Ahmmed visited Kadagadalu, Abhyathmangala, Chettalli, Nelyahudikeri, SIddapura, Makkandoor, Madapura, Athooru, Guddehosoor and other polling booths. The counting of votes will be held at 8 am on February 23.

source: http://www.deccanherald.com / Deccan Herald / Home> District / Chikkamagaluru – Kodagu / DHNS – February 21st, 2016

Bayar’s Coffee bags award

R Nagaraja Rao (on left), Executive Director, Bayar’s Coffee, with R K Krishna Kumar, Trustee of the Tata Trust.
R Nagaraja Rao (on left), Executive Director, Bayar’s Coffee, with R K Krishna Kumar, Trustee of the Tata Trust.

Bengaluru :

Bayar’s Coffee, a leading coffee manufacturing company from Bengaluru, has bagged the ‘Best Roasters Platinum Award-2016’ instituted by the Coffee Board of India and the India Coffee Trust.

The award was presented for adoption of food safety standards, implementation of new technology, and for producing high quality coffee blends.

The award was given at a glittering ceremony held at Mumbai, presided over by Leena Nair, Chairperson of the Coffee Board. R K Krishna Kumar, Trustee of the Tata Trust, felicitated R Nagaraja Rao, Executive Director, Bayar’s Coffee, with the “Best Roasters Platinum Award-2016”.

Expressing his happiness over the award, Nagaraja Rao said, “We have introduced a variety of speciality coffee blends in tune with customer needs. We are happy that Bayar’s Coffee has bagged the award four times in a row. Our responsibility to provide high quality coffee to our customers has increased.”

source: http://www.thehindubusinessline.com / Business Line / Home> Companies / by Anil Urs / Bengaluru – January 27th, 2016