Coffee Board kicks off branding initiative

Seeks Andhra govt’s help to market coffee grown in Araku Valley
CoffeeKF21oct2013

In a bid to fetch higher prices in international markets, the Coffee Board of India has kicked off a branding initiative for Indian coffee. The Board intends to create a common brand to market Indian coffee, especially those grown in the Western Ghats and Araku Valley in Andhra Pradesh.

“Almost 98 per cent of coffee produced in India is grown in the Western Ghats region and some new areas in Araku Valley. Indian coffee, grown under tree shade, is very popular in the international markets. It contributes to intrinsic quality and internationally it is known as eco-friendly coffee. So, we are trying to make use of the Western Ghats tag to market our coffees in the overseas markets,” Jawaid Akhtar, chairman of Coffee Board, told Business Standard.

The Board will sell Indian coffee as “good coffee” and “organic coffee” to fetch higher prices in the overseas markets.

Akhtar said Indian exporters are able to command 40-50 per cent higher margins on the benchmark International Coffee Organization (ICO) prices for washed Robusta and 25 per cent for Robusta Cherry. “We are contemplating to come out with a common brand for Indian coffee. We are also planning to promote our coffee through international trade fairs, exhibitions and release advertisements,” Akhtar added.

For the first time, coffee grown in Araku Valley in parts of the eastern Ghats of Andhra Pradesh is coming to market this year, Akhtar said, adding the Board plans to market this coffee as “organic coffee”. In Araku Valley, the coffee is largely grown by tribals.

Popularly known as non-traditional areas in the coffee circles, this region includes the states of Andhra Pradesh, Odisha and to a small extent Madhya Pradesh. The region is predominantly inhabited by a wide variety of tribal groups, who are known for their traditional agriculture practices and ‘podu’ (shifting cultivation) over centuries.

The trees are planted at an elevation of 3,200 ft above the sea level.

“We have requested the government of Andhra Pradesh to help tribals market their coffee, so that we can reduce the role of middlemen. There are some non-government organisations like Naandi Foundation that are assisting tribals in cultivating coffee,” said Akhtar.

Araku Valley is expected to produce about 6,500 tonnes of coffee this year. Over 100,000 tribals have brought 55,000 hectares area under coffee plantations in the Valley and the average holding is one acre per person. The tribals have used mainly organic practices to grow the coffee.

Arabica coffee is the main variety and the arabica station breed selections such as S.934, Sln.4 (agaro) and Sln.5 occupy major areas in Andhra Pradesh. In Odisha, Cauvery is the main variety under cultivation. Pepper is the main inter crop adding substantially to the net returns of coffee farms. The coffees of this region are classified as medium body, medium to sharp acidity and intense aroma with a spicy tinge.

source: http://www.business-standard.com / Business Standard / Home> Markets> Commodities> Food & Edible Oils / by Mahesh Kulkarni / Bangalore – October 14th, 2013

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