India hopes to export surplus coffee.

India hopes to export surplus coffee

In light of the ICO export quota suspension, industry spokespeople say they intend to make all efforts to export all surplus coffee stocks. In a recent meeting with the Minister of State for Commerce Priya Ranjan Das Munshi, the chairman and members of the Indian Coffee Board, participated along with representatives of Tamilnadu and Karnataka State Governments and representatives of the Indian coffee industry.

The exporters wanted the present periodicity of conducting export auctions once in a fortnight increased to weekly auctions and the quantities exposed at each of the auctions to be considerably increased from the present level of 4,000 tons. They requested for increase in REP license from four percent to eight percent of the bulk exports of Indian coffee and a further enhancement of cash compensatory support meant for export of instant coffee from the present level of 20 percent to give similar cash compensator support on exports of roasted coffee. The other demands made by them were that the Government should take action to include coffee in the list of commodities for counter trade and also to take necessary action to persuade the concerned Governments of the EEC Group to exempt the import of coffee from India from the import duties as they have done in respect of African countries. The officials of the Ministry of Commerce, Government of India assured that appropriate action would be initiated with the concerned authorities.

The traders representative wanted the Indian government to allow them to import roasters and grinders on open general license (O G L) and to exempt them from import duty. Another demand made by them was that the Indian Coffee Board should take necessary steps to release more quantities of quality coffee for internal consumption. The Minister of State for Commerce, Government of India, agreed to look into the matter and consult with the Indian Coffee Board.

The growers representatives complained about the steep fall in return on coffee produced and delivered by them to the Board and the aggravation of the situation due to the imposition of the purchase tax by the Karnataka State Government at the rate of 13 percent plus Turnover Tax of 1.5 percent (T O T). They pointed out to the Karnataka State Government officials and the Minister of State for Commerce that the neighboring States of Tamil Nadu and Kerala are levying only six to seven percent tax while the Karnataka Government impost is as high as 14.5 percent. They appealed to the Karnataka Government representatives to come to their rescue by lowering the tax rate to a reasonable level. The government of India at the highest level has already initiated action in this regard and hoped that the matter would be settled very early.

An opinion was expressed that the quota system may be reintroduced at any time, not necessarily at the end of two years. Emphasis was therefore laid on the need for making all out efforts for maximizing all exports of Indian coffee both to member and non-member countries of ICO at the earliest possible date so that it would help India in securing a higher quota even if a universal quota system were to be introduced by the ICO at a later date.