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Tuesday, July 20, 1999

India may not heed ACPC on coffee exports 

PRESS TRUST OF INDIA  
New Delhi, July 19: The country is unlikely to heed to the suggestion of the Association of Coffee Producing Countries (ACPC) to voluntarily cut its coffee exports as part of ACPC efforts to limit the beverage's exports to 50 million 50-kg bags for 1999-2000 and 2000-2001.

"It (efforts to cut exports) is voluntary and is not binding on any one. Everyone is exporting despite the ACPC suggestion," official sources said. The ACPC at a meeting in Brasilia, Brazil during second week of this month had unveiled a two-year coffee export target plan for its members, designed to limit member export plans.

World's largest producer Brazil has committed to limit its exports to 15 million bags in 1999-2000 and 17 million bags in 2000-2001, while other producers are expected to progressively lower their export target. "If we don't export, someone else will and thus capture our market," the sources in commerce ministry said.

India had attended the ACPC meeting soon after government decided to join the coffee producers'body. Though the nation's exports is nearly 65 per cent of its total production, it is a minor player in the global coffee market, making up just 3.8 of the coffee produced in the world.

The ACPC was floated by leading coffee producing countries like Brazil and Colombia in 1989 after the retention system ended.

India did not opt to become a member of the association then as it did not want to be governed by restrictions in it, like fixing of exports quota for each member.

Many countries cheated on the quota front and that was one reason for India not deciding to become a member. A dramatic change last year was when the country decided to consider joining the producers' body. India decided to join ACPC after the Coffee Board took a view that there were many other advantages in joining the association.

India's decision to join the ACPC coincides with its efforts to get funds for research and development from the International Coffee Organisation (ICO), a body of coffee growing and consuming nations.India's growing stature in the global coffee scenario was further boosted last year when it got elected to the ICO executive after almost three decades.

Industry sources, meanwhile, said any decision by India to abide by the ACPC could prove costly, especially during the oncoming coffee year (October 1999-September 2000) in view of an anticipated record crop of 2.80 lakh tonnes.

Coffee Board chairman SV Ranganath when contacted on the expectation of a record crop said the next coffee season was a "flush" after the current lean season. "Research and extension efforts have helped us to reach this level (of production)," he said. Moreover, putting the Robusta coffee crop under irrigation had also paid handsome dividends, the official said.

The estimation of 2.80 lakh tonnes of crop for the next season is against this year's Production projections of 2.3 lakh tonnes. Next season, Robusta coffee production is anticipated to be 1.65 lakh tonnes and Arabica the rest.

Production figures of coffee in 1995-96were 2.20 lakh tonnes; in 1996-97 2.05 lakh tonnes; 1997-98 2.28 lakh tonnes; 1998-99* 2.30 lakh tonnes; and 1999-00# 2.80 lakh tonnes.(* estimates, # projection based on blossom, source: Coffee Board.)

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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