AMIT CHANDRA GUPTA.doc

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EXPORT POTENTIAL ANALYSIS OF INDIAN

COFFEE INDUSTRY

A PROJECT REPORT

SUBMITTED TOWARDS THE PARTIAL FULFILLMENT OF

REQUIREMENTS OF THE TWO YEARS FULL TIME MASTER OF

BUSINESS ADMINISTRATION

SUBMITTED BY:

AMIT CHANDRA GUPTA

UNDER THE GUIDENCE OF

Dr. D.M.MAHAPATRA

GREATER NOIDA INSTITUTE OF TECHNOLOGY, GREATER NOIDA

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DECLARATION

I hereby declare that the project report entitled EXPORT POTENTIAL ANALYSIS OF INDIAN

COFFEE INDUSTRY has been prepared by me as part of partially fulfillment of my degree.

The project report is my confide report. The results embodied in this project report have not been

submitted partially to any other university or college for the award of any diploma degree.

Amit chandra gupta

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ACKNOWLEDGEMENT

I owe deep sense of gratitude to my beloved institution, greater noida institute of technology.

It is with profound sense of gratitude that I wish to reveal my overwhelming thanks to Dr. D.M

MHAPATRA my project guide who has rendered his valuable counsel and guidance in completing

this project. I would also like to thank all my faculty members for their valuable suggestions.

Lastly, I put forth my due thanks to my parents, friends and all well wishers for their full fledged

and tremendous support in completing this project work successfully and to all the respondents who

have cooperated for the collection of data.

AMIT CHANDRA GUPTA

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Executive Summary

Coffee is the second largest traded commodity in the world & is an extremely important foreign

exchange earner as far as the commodities are concerned. Brazil and Columbia are top two coffee

producers in the world. They account for more than 40% of the total world produce while Indias

contribution is just 4.1%.

Indian coffee is rated among the best-quality mild coffees in the international market and is

exported to USA, UK Russia, Europe, Sweden, Norway, Yugoslavia, Belgium, Australia, Japan and

the Gulf countries.In India coffee cultivation is largely confined to the hilly regions of the southern

states of Karnataka, Tamil Nadu and Kerala Karnataka accounts for 53 percent of the planted area

(59 percent planted to Arabica, 41 percent to Robusta) while Robusta is dominant in Kerala (which

has 28 percent of planted area). In Tamil Nadu however the crop is majorly of Arabica (which has

11 percent of planted area). Some 1, 33,049 small planters and 2,948 large planters cultivated coffee

during the year.India produces 260mn Kgs of coffee per year. Indian coffee production has a yield

of 800 900 kg. Per hectare, this is low compared to the world average of 1,100 kg per hectare. The

area under coffee cultivation is approximately 3.1 lakh hectares.India produces an average of nearly

2 lakh tones of coffee a year, valued at over Rs. 460 crore, mainly grown in south India. Out of the

total production only 20% is consumed in the domestics markets rest is exported. Thus India has to

depend heavily on foreign markets.Indian coffee is typically mild and not too acidic-and yet it

possesses and exotic full-bodied taste and a fine aroma. The flavour is full bodies, slightly acidic

and straightforward.

The corporate presence in coffee plantations is negligible, although it is high in the end product

market. There are only few major integrated coffee players in India. TCL, which is the largest

coffee plantation company in India, contributes a mere 2 per cent to the country's total coffee

production. This is the result of the significant presence of non-corporate planters. Bulk of the

coffee bean production comes from a large number of small farmers. While Nestl India Ltd and

HUL are the other major players in the organised coffee industry they do not own plantations. After

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being stagnant in the 1990s at 50-55 million kg, coffee consumption in the country started growing

in the current decade. CRISIL Research forecasts coffee consumption in India to be 94.8 and 101.0

million kg in crop years 2008-09 and 2009-10, respectively. Coffee consumption is likely to grow at

a CAGR of 6.5 per cent over the next 2 years due to spread of the coffee.

Government also made the policy for coffee for the year 2004-09

A new scheme called VisheshKrishiUpajYojana, which has been introduced to boost the exports of

fruits, vegetables, flowers, minor forest produce and their value-added products.

Duty-free import of capital goods under the Export Promotion Capital Goods (EPCG) scheme.Capital goods imported under EPCG for agriculture permitted to be installed anywhere in the

agriexport zones.

Assistance to States for Infrastructure Development of Exports (ASIDE) funds to be also utilized

for the development of agriexport zones.

Import of seeds, bulbs, tubers and planting material has been liberalized.

Export of plant portions, derivatives and extracts has been liberalized with a view to promote

exports of medicinal plants and herbal products.

The Produce CessLaws (Abolition) Act, 2006, was notified in the Gazette of India on 26

September 2006, in order to remove the cesson export of agricultural products and to encourage the

export of agricultural products

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Table of Contents

Page no.

1. Introduction

1.1 Coffee industry in India and world8

2. Literature Review..........................................................................................11

3. Research Design

3.1 Introduction to the study17

3.2 Statement of the problem...17

3.3 Objective of the study17

3.4 Tools and Techniques18

3.5 Limitation of the study...18

4. Analysis

4.1 World coffee map..20

4.2 World coffee production21

4.3 State wise productions in post blossom

and post monsoon.24

4.4 Coffee export value of India 29

4.5 Export by exporting countries...30

4.6 Coffee consumption by world...35

4.7 Freight charges..38

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4.8 Trade policy and regulations.41

4.9 Competitor analysis Brazil.....48

4.10 Future strategy for new market57

5. Summary and Findings586. Bibliography...59

INTRODUCTION

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1.1 Coffee Industry in India and world

Coffee is abrewedbeverageprepared from roasted seeds, commonly called coffee beans, of

the coffee plant. They are seeds of "coffee cherries" that grow on trees in over 70 countries. It has

been said that green coffee is the second most traded commodity in the world behind crude oil. Due

to its caffeine content, coffee can have a stimulating effect in humans. Today, coffee is one of the

most popular beverages worldwide.

It is supposed that the Ethiopians, the ancestors of today's Oromo people, were the first to have

discovered and recognized the energizing effect of the coffee bean plant. However, no directevidence has ever been found revealing exactly where in Africa coffee grew or who among the

natives might have used it as a stimulant or even known about it there earlier than the seventeenth

century. The story ofKaldi, the 9th-century Ethiopian goatherd who discovered coffee, did not

appear in writing until 1671 and is probably apocryphal. The earliest credible evidence of either

coffee drinking or knowledge of the coffee tree appears in the middle of the fifteenth century, in the

Sufi monasteries of the Yemen in southern Arabia. From Ethiopia, coffee spread

to Egypt and Yemen.

It was in Arabia that coffee beans were first roasted and brewed, similar to how it is done today. By

the 15th century, it had reached the rest of the Middle East, Persia, Turkey, and northern Africa.

From the Muslim world, coffee spread to Italy, then to the rest ofEurope, to Indonesia, and to the

America.

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http://en.wikipedia.org/wiki/Brewhttp://en.wikipedia.org/wiki/Drinkhttp://en.wikipedia.org/wiki/Seedhttp://en.wikipedia.org/wiki/Coffee_beanhttp://en.wikipedia.org/wiki/Coffeahttp://en.wikipedia.org/wiki/Caffeinehttp://en.wikipedia.org/wiki/Oromo_peoplehttp://en.wikipedia.org/wiki/Kaldihttp://en.wikipedia.org/wiki/Egypthttp://en.wikipedia.org/wiki/Yemenhttp://en.wikipedia.org/wiki/Arabiahttp://en.wikipedia.org/wiki/Persiahttp://en.wikipedia.org/wiki/Turkeyhttp://en.wikipedia.org/wiki/North_Africahttp://en.wikipedia.org/wiki/Muslim_worldhttp://en.wikipedia.org/wiki/Italyhttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/Indonesiahttp://en.wikipedia.org/wiki/Brewhttp://en.wikipedia.org/wiki/Drinkhttp://en.wikipedia.org/wiki/Seedhttp://en.wikipedia.org/wiki/Coffee_beanhttp://en.wikipedia.org/wiki/Coffeahttp://en.wikipedia.org/wiki/Caffeinehttp://en.wikipedia.org/wiki/Oromo_peoplehttp://en.wikipedia.org/wiki/Kaldihttp://en.wikipedia.org/wiki/Egypthttp://en.wikipedia.org/wiki/Yemenhttp://en.wikipedia.org/wiki/Arabiahttp://en.wikipedia.org/wiki/Persiahttp://en.wikipedia.org/wiki/Turkeyhttp://en.wikipedia.org/wiki/North_Africahttp://en.wikipedia.org/wiki/Muslim_worldhttp://en.wikipedia.org/wiki/Italyhttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/Indonesia


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The Coffea plant is native to subtropical Africa and southern Asia. It belongs to a genus of ten

species offlowering plants of the family Rubiaceae. It is an evergreen shrub or small tree that may

grow 5 meters tall when unpruned. The leaves are dark green and glossy, usually 100

150 millimeters long and 60 millimeters wide.

It produces clusters of fragrant white flowers that bloom simultaneously. The fruit berry is oval,

about 15 millimeters long, and green when immature, but ripens to yellow, then crimson, becoming

black on drying. Each berry usually contains two seeds, but 510% of the berries have only one;

these are calledpeaberries. Berries ripen in seven to nine months.

According to latest ICO monthly report, world consumption in 2006 is estimated at 117.93 mn bags

compared with 116.06 mn bags. While ICO member countries' domestic consumption in 2006 is

estimated at little over 31 mn bags, the importing countries consumption is estimated at 86.84 mn

bags. European Community's consumption is higher at 85.75mn bags compared with 38.97mn bags

in 2005.

India accounts for about 4.5 percent of world coffee production and the industry provides

employment to 6 lakh people. Among the coffee growing states, Karnataka accounts for 70 percentof country's total coffee production followed by Kerala (22 percent) and Tamil Nadu (7 percent).

Europe accounts for about 70 percent of India's total coffee exports. Of this again, 70 percent is

shipped via Suez Canal. Major Indian coffee importing countries include Italy, Germany, Russian

federation, Spain, Belgium, Slovenia, US, Japan, Greece, Netherlands and France.

Coffee is the second largest traded commodity in the world & is an extremely important foreign

exchange earner as far as the commodities are concerned. Brazil and Columbia are top two coffee

producers in the world. They account for more than 40% of the total world produce while Indias

contribution is just 4.1%.

Indian coffee is rated among the best-quality mild coffees in the international market and is

exported to USA, UK Russia, Europe, Sweden, Norway, Yugoslavia, Belgium, Australia, Japan and

the Gulf countries.

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http://en.wikipedia.org/wiki/Africahttp://en.wikipedia.org/wiki/Asiahttp://en.wikipedia.org/wiki/Genushttp://en.wikipedia.org/wiki/Flowering_planthttp://en.wikipedia.org/wiki/Rubiaceaehttp://en.wikipedia.org/wiki/Evergreenhttp://en.wikipedia.org/wiki/Peaberryhttp://en.wikipedia.org/wiki/Africahttp://en.wikipedia.org/wiki/Asiahttp://en.wikipedia.org/wiki/Genushttp://en.wikipedia.org/wiki/Flowering_planthttp://en.wikipedia.org/wiki/Rubiaceaehttp://en.wikipedia.org/wiki/Evergreenhttp://en.wikipedia.org/wiki/Peaberry


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In India coffee cultivation is largely confined to the hilly regions of the southern states of

Karnataka, Tamil Nadu and Kerala Karnataka accounts for 53 percent of the planted area (59

percent planted to Arabica, 41 percent to Robusta) while Robusta is dominant in Kerala (which has

28 percent of planted area). In Tamil Nadu however the crop is majorly of Arabica (which has 11

percent of planted area). Some 1, 33,049 small planters and 2,948 large planters cultivated coffee

during the year.

India produces 260mn Kgs of coffee per year. Indian coffee production has a yield of 800 900 kg.

Per hectare, this is low compared to the world average of 1,100 kg per hectare. The area under

coffee cultivation is approximately 3.1 lakh hectares.

India produces an average of nearly 2 lakh tones of coffee a year, valued at over Rs. 460 crore,

mainly grown in south India. Out of the total production only 20% is consumed in the domestics

markets rest is exported. Thus India has to depend heavily on foreign markets.

Indian coffee is typically mild and not too acidic-and yet it possesses and exotic full-bodied taste

and a fine aroma. The flavour is full bodies, slightly acidic and straightforward.

The corporate presence in coffee plantations is negligible, although it is high in the end product

market. There are only few major integrated coffee players in India. TCL, which is the largest

coffee plantation company in India, contributes a mere 2 per cent to the country's total coffee

production. This is the result of the significant presence of non-corporate planters. Bulk of the

coffee bean production comes from a large number of small farmers. While Nestl India Ltd and

HUL are the other major players in the organised coffee industry they do not own plantations.

After being stagnant in the 1990s at 50-55 million kg, coffee consumption in the country started

growing in the current decade. CRISIL Research forecasts coffee consumption in India to be 94.8

and 101.0 million kg in crop years 2008-09 and 2009-10, respectively. Coffee consumption is likely

to grow at a CAGR of 6.5 per cent over the next 2 years due to spread of the coffee

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drinking habit in non-traditional regions, growing caf culture and increasing share of instant coffee

in total coffee consumption (manufacturing 1 kg of instant coffee requires 2.5 kg of coffee beans,

while manufacturing 1 kg of filter coffee requires 1.25 kg of coffee beans).

The Coffee Board, supported by the International Coffee Organization (IOC), is now placing greater

emphasis on boosting domestic coffee consumption through generic promotions, projecting coffee

as a healthy drink.

LITERATURE REVIEW

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According the survey conducted by coffee board of India:

Indian coffee industrys cup of woes continues to overflow. The country, which exports over 75 per

cent of its produce, witnessed a decline in output during the last crop year-ended September 2009.

Coupled with this, the sector was hit hard due to economic slowdown. Global demand for coffee is

yet to pick up though green shoots are showing up elsewhere in the economy.

Indias coffee export earnings have fallen 20 per cent for the first seven months of the financial year2009-10. Export earnings stood at Rs 1,119 crore during April-October 2009, as against Rs 1,404

crore during the corresponding period of the last year 2008. Output in India was hit due to the heavy

crop loss in Karnataka. India produced 262,300 tonnes coffee during crop year 2008-09, which was

10 per cent less than the initial estimates of the Coffee Board. For the present crop year beginning

October 2009, India has pegged output at a higher level at 306,300 tonnes arabica 101,525

tonnes and robusta 204,755 tonnes, which will arrive in the market in January 2010.

According to president of coffee exporters of India- Mr. Ramesh Raja

Higher output this year is expected to boost export volumes. However, exporters say that prices,

which are now in a comfort zone, would fall as a result of the increased supply. Indian coffee is

fetching around $1.3 per pound, one of the highest in recent months. Bumper crop in major coffee-

producing countries would mean a glut in the market, resulting in a sharp fall in price in the

international markets,.

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According to the survey conducted by coffee board of india in different states:

In Karnataka compared to the previous post blossom estimate, the increase in production has come

from the districts of Chikmagalur and Kodagu with 5.92% (4,250 MT) and 3.15% (3,605 MT)

while in Hassan there was a marginal decline of 550 MT (-1.96%). Between arabica and robusta in

Karnataka, the increase is from robusta alone (8,855 MT) while arabica has declined by 1550 MT (-

1.91%). The major zones, which have shown increase are, Giris (14.51%), Balehonnur (13.79%),

Chikmagalur (11.63%) and Koppa (10.21%) zones of Chikmagalur district, Napoklu (20.80%),

Virajpet (19.14%) and Gonikoppal (11.10%) zones of Kodagu district and Hanbal (18.35%) zone of

Hassan district.

Good and well distributed rainfall during October to March helped in moisture retention for longerperiod which in-turn helped in the production of more bearing wood for the crop during the current

season. Further the blossom and backing showers were reported to be good and adequate in almost

all the coffee growing zones of Karnataka. Generally lower crop in the previous season especially in

arabica, coupled with good weather and bush condition and better husbandry practices has helped to

regain production in Karnataka Zones. Accounting this, the crop forecast for Karnataka is placed at

79,720 MT of arabica and 141,755 MT of robusta totaling 221,475 MT. Overall, there is 3.41%

increase over the previous seasons post blossom production in Karnataka (214,170 MT), which is

due to increase in robusta production of 6.66% while that of arabica declined by 1.91%.

Kerala coffee zones also have received adequate and timely blossom and backing showers. As no

adverse effect on crop was reported especially in coffee growing districts of Wayanad and

Nelliampathies though there is a marginal decline in Travancore. Accounting this the post blossom

estimates for the 2009-10 is placed at 59,550 MT, which is an increase of 4.11% over the previous

2008-09 post blossom forecast of 57,200 MT.

Similarly Tamil Nadu had also shown an increase in crop during the current season mainly because

of the biennial bearing nature of arabica as last year was off-year. Further blossom and backing

showers were reported to be normal resulting an increase in crop. Accounting this, the Post blossom

forecast of Tamil Nadu is placed at 19,550 MT increase by 17.59% over the previous post blossom

forecast of 16,255 MT.

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In Non-Traditional areas of Andhra Pradesh and Orissa and North Eastern Region, the post-

blossom forecast is placed at 5,725 MT against previous post blossom estimate of 5,005 MT. The

higher forecast has come mainly from Andhra Pradesh due to increase in bearing area.

EXPORT:

In economics, an export is any good orcommodity, transported from one country to another country

in a legitimate fashion, typically for use in trade. Export goods or services are provided to

foreign consumers by domesticproducers. Export is an important part ofinternational trade. Export

of commercial quantities of goods normally requires involvement of the customs authorities in both

the country of export and the country of import.

The definition of Export is when you trade something out of the country. In economics, an export is

any good or commodity, transported from one country to another country in a legitimate fashion,

typically for use in trade.

COFFEE INDUSTRY:

2004: Top agri export for 12 countries

2005: 7thlargest agri export (value basis)

2007: Prodn291000MT (Arabica 101 KMT, Robusta 190 KMT)

2008: Targeted domestic consumption 85000 MT

Brazil is the largest coffee producer

India accounts for 4.5% of global coffee produce

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http://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Good_(economics_and_accounting)http://en.wikipedia.org/wiki/Commodityhttp://en.wikipedia.org/wiki/Transporthttp://en.wikipedia.org/wiki/Tradehttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Production_theory_basicshttp://en.wikipedia.org/wiki/International_tradehttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Good_(economics_and_accounting)http://en.wikipedia.org/wiki/Commodityhttp://en.wikipedia.org/wiki/Transporthttp://en.wikipedia.org/wiki/Tradehttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Production_theory_basicshttp://en.wikipedia.org/wiki/International_trade


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Coffee industry employs 6 lakh people

70% of Indian Coffee exported to Europe (Italy, Germany)

Problem Definition

The first step in any analysis is to define the problem. In defining the problem, the researcher should

take into account the purpose of the study, the relevant background information, what information is

needed, and how it will be used in decision making. Problem definition involves discussion with the

decision makers, interviews with industry experts, analysis of secondary data, and, perhaps, some

qualitative research. Once the problem has been precisely defined, the research can be designed and

conducted properly.

Development of an Approach to the Problem

Development of an approach to the problem includes formulating an objective or theoretical

framework, analytical models, research questions, hypotheses, and identifying characteristics or

factors that can influence the research design. This process is guided by case studies and

simulations, analysis of secondary data, qualitative research and pragmatic considerations.

Data Preparation and Analysis

Data preparation includes the editing, coding, transcription, and verification of data. Data analysis,

guided by the plan of data analysis, gives meaning to the data that have been collected. Univariate

techniques are used for analyzing data when there is a single measurement of each element or unit

in the sample, On the other hand, multivariate techniques are used for analyzing data when there are

two or more measurements on each element and the variables are analyzed simultaneously.

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RESEARCH DESIGN

3.1 INTRODUCTION TO THE STUDY:

This project has been done on EXPORT POTENTIAL ANALYSIS OF INDIAN COFFEE

INDUSTRY. In this project the system and procedure of export potential analysis has been

presented in detail.

Title of the study: A project is complete study on EXPORT POTENTIAL ANALYSIS OF INDIAN

COFFEE INDUSTRY.

3.2 STATEMENT OF THE PROBLEM:

Coffee is an agro product, which plays a vital role in Indias GDP. India produces near about 5% of

total coffee production and this sector employs near about six lakhs people. The consumption of

coffee is very less in India and the maximum amount of coffee gets exported to the European

countries and more than 10 Indian states are involved in the coffee production. It also plays a vital

role in Indian exports and it is also very much important from international business point of view.

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In this period of globalization, where the whole world has become like a small market, it is essential

that countries effort continuously to invest on time, money and skills of their personnel to be able to

meet the level of zenith. Coffee is one of the agro product in which India has employed more than

six lakhs people and India stood in top ten country, who all are engaged in coffee exporting.

3.3 OBJECTIVES OF STUDY:

The main purposes of study are to:

To know the Indian and international coffee market.

To find out the information regarding major exporters and importers in coffee market.

To explore the trade related regulations and the future strategies.

To study the SWOT analysis of India and competing countries.

3.4 TOOLS AND TECHNIQUES

Secondary data: Secondary data is data collected by someone other than the user. Common sources

of secondary data for social science include censuses, surveys, organizational records and data

collected through qualitative methodologies orqualitative research.

In this project the secondary data are collected from various authentic sources like coffee board

official website, coffee board annual report, Wikipedia.org and various other reputade magazinesand journals.

3.5 LIMITATION OF THE STUDY:

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http://en.wikipedia.org/wiki/Datahttp://en.wikipedia.org/wiki/Qualitative_researchhttp://en.wikipedia.org/wiki/Datahttp://en.wikipedia.org/wiki/Qualitative_research


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As the project is prepared for academic purpose it suffers for the limitation of the time and due to

which an analytical study into all the potential fields belongs to coffee export of India was not

possible

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ANALYSIS

4.1 World Coffee Map

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AREA UNDER COFFEE

PERCENTAGE SHARE IN PRODUCTION 2003

brazil

35%

vietnaam

17%

indonesia

13%

columbia

11%

mexico

5%

india

5%

ethopia

4% guatemala

4%

honduras

3%

uganda

3%

The above pie chart shows the distribution of coffee production in world, according to the above

chart it is very clear that Brazil was the highest producer of coffee in the world which produced near

Sl.no.

Size of holdings no. of holdings area under coffee Share of production

Number % of total Area in hec. % of total

I Small holdings

in hectares


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about 35% of total production of world followed by Vietnam, Indonesia, and Columbia. In the year

2003 India was part of worlds greatest coffee producer with 5% share in total production, India was

behind of 5 countries and stood no. 6in worlds top coffee producer.

PERCENTAGE SHARE IN PRODUCTION 2008

In the year 2008 the position of nation in contribution in total coffee production remained same

though the percentage of contribution changed with great difference, Brazil the main coffee

exporter and producer reduced its contribution from 35% to 26% followed by Vietnam, Indonesia

and Columbia and these countries also contributed less then 2003. India and Mexico contributed

same 8% in the year 2008 which was 3% increase in compare of 2003 in the context of India, which

shows the Indias coffee potential in coming year.

4.3 STATE WISE PRODUCTION OF ARABICA AND ROBUSTA IN POST

BLOSSOM AND POST MONSOON

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KARNATAKA

District Post blossom 2008-09(mt) Post monsoon 2008-09(mt)Arabica Robusta Total Arabica Robusta Total

Chikmaglur 33850 32900 71750 36300 27400 63700

Kodagn 24370 90000 114370 24750 83950 108700

Hassan 18050 10000 28050 12900 6275 19175

Sub Total 81270 132900 214170 73950 117625 191575

The above table is showing Arabica and Robusta production in post blossom and post monsoon

in Karnataka state of India. The table shows that in post blossom Chikmanglur district produces

maximum Arabica in metric ton where Robusta is produced highest by Kodagan. Where in Post

monsoon Arabica is maximum produced in again in Chikmanglur and Robusta in kodgan. The

total production of Arabica and Robusta is 81270 and 132900 metric ton respectively and in post

monsoon Arabica is produced 73950 metric ton and Robusta 117625 metric ton.

KERALA

District Post blossom 2008-09(mt) Post monsoon 2008-09(mt)

Arabica Robusta Total Arabica Robusta Total

Wayand 10 47500 47510 25 40300 40325

Travancore 815 7000 7815 675 6000 6675

Nelliampathie

s

600 1275 1875 600 1400 2000

Sub Total 1425 55275 57200 1300 47700 49000

In Kerala state Travancore contributes highest in Arabica category both in post monsoon and post

blossom. Where in Robusta category Wayand contributes most in post blossom and post monsoon

season.

TAMILNADU



Pulneys 5500 325 5825 7575 425 8000

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Nilgiris 1875 3325 5200 1675 3175 4850

Salem 3050 50 3100 3150 0 3150

Coimbatore 2000 500 2500 1650 450 2100

Sub Total 12425 4200 16625 14050 4050 18100

In Tamilnadu the total production of Robusta is 4200 metric ton in post blossom and 4050 metric

ton post monsoon season where Total Production of Arabica 12425 metric ton in post blossom and

in post monsoon Arabica is produced 14050 metric ton. Where Pulneys district produces most of

Arabica in both the season and Nilgiris produces maximum amount of Robusta in both the season.

NON TRADITIONAL AREAS



Andhra

Pradesh and

Orissa

4800 80 4880 3110 65 3175

North

Eastern

Region

80 45 125 90 60 150

Sub Total 4880 125 5005 3200 125 3525

When we take other states which are producer of coffee but not in the high quantity, in this category

Andhra Pradesh and Orissa contributes highest in both the category Arabica and Robusta in Post

blossom and Post monsoon season.

Whereas north eastern states contributes in very low quantity in both type of Coffee.

INDIA OVERALL



Karnataka 81270 132900 214170 72950 117625 191575

Kerala 1425 55775 57200 1300 1300 49000

Tamil nadu 12425 4200 16625 14050 14050 18100

Others 4880 125 5005 3200 125 3525

Total 100000 193000 293000 92500 169500 262000

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If we take India overall, Karnataka is the largest producer of coffee which contributes more than

80% overall.

Post Blossom Production of Arabica in 2008-09

Karnataka

81%

Kerala

1%

Tamilnadu

13%

Non traditional

areas

5%

Arabica

Post Blossom Production of Robusta in 2008-09

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Post Monsoon Production of Arabica 2008-09

Post Monsoon Production of Robusta 2008-09

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4.4 - COFFEE EXPORT VALUE OF INDIA

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EXPORTS BY EXPORTING COUNTRIES TO ALL DESTINATIONS

SEPTEMBER 2009

(60-kilo bags)

Oct-08 Oct-07

to to

Sep-09 Sep-09 Sep-08 Sep-08

TOTAL 6 924 325 1/ 97 583 820 1/ 8 088 173 96 077 958

Colombian Milds 547 736 10 051 139 984 678 12 706 274

Other Milds 1 385 151 20 985 547 1 695 795 22 192 754

Brazilian Naturals 2 527 285 30 973 095 2 686 828 27 270 644

Robustas 2 464 153 35 574 038 2 720 871 33 908 286

Angola R 1 150 5 825 0 7 275

Benin R 0 0 0 0

Bolivia A 9 000 74 500 10 500 71 184

Brazil A/R 2 633 238 31 552 248 2 998 799 27 970 183

Burundi A 25 000 377 517 42 900 184 731

Cameroon R/A 35 000 514 077 52 019 549 104

Central African Republic R 2 000 25 450 2 143 50 899

Colombia A 501 421 8 716 149 939 267 11 556 563

Congo, Dem. Rep. of R/A 14 000 145 638 15 898 215 929

Congo, Rep. of R 0 0 0 0Costa Rica A 14 942 1 177 854 43 885 1 402 137

Cte d'Ivoire R 113 386 1 571 858 147 647 1 946 550

Cuba A 0 7 462 0 3 850

Dominican Republic A 706 109 354 4 930 74 276

Ecuador A/R 110 000 1 049 143 87 639 897 341

El Salvador A 64 703 1 343 327 52 780 1 430 291

Ethiopia A 161 341 1 867 987 145 597 2 805 680

Gabon R 0 0 0 421

Ghana R 1 000 18 305 5 523 31 515

Guatemala A 141 430 3 455 966 159 672 3 821 677Guinea R 25 000 284 708 14 621 275 689

Haiti A 2 000 19 266 1 313 18 822

Honduras A 52 788 3 020 880 98 966 3 394 793

India A/R 150 000 2 539 021 295 613 3 389 092

Indonesia R/A 700 000 7 572 872 766 136 5 510 512

Jamaica A 767 25 593 1 550 23 923

Kenya A 40 000 571 798 40 000 627 105

Madagascar R 10 000 114 178 18 353 216 268

Malawi A 500 15 079 4 050 27 655

Mexico A 197 489 2 774 648 184 998 2 555 318

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Nicaragua A 103 593 1 432 518 127 472 1 639 964

Nigeria R 0 1 768 0 2 156

Panama A 5 000 95 308 4 728 117 695

Papua New Guinea A/R 100 000 931 525 128 084 1 107 633

Paraguay A 0 2 805 170 2 666

Peru A 467 228 3 433 063 567 887 3 233 530

Philippines R 500 7 155 6 7 144

Rwanda A 12 000 289 073 44 846 264 801

Tanzania A/R 39 157 1 200 566 14 985 747 357

Thailand R 18 000 180 800 12 900 153 400

Togo R 7 000 141 255 4 838 134 131

Uganda R/A 198 988 3 057 320 212 526 3 209 995

Venezuela A 1 000 35 083 1 339 146 996

Vietnam R 940 000 17 408 116 787 924 15 774 099

Zambia A 2 000 31 434 3 210 52 973

Zimbabwe A 1 000 17 095 1 798 22 651

Other exporting countries 2/ 22 000 368 231 40 661 401 983

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BREAKDOWN OF EXPORTS OF ARABICA AND ROBUSTA

FOR COUNTRIES EXPORTING SIGNIFICANT VOLUMES OF BOTH TYPES OF COFFEE

SEPTEMBER 2009

(60-kilo bags)

Oct-08 Oct-07

To To

Sep-09 Sep-09 Sep-08 Sep-08

Brazil Total 2 378 67828 643 5522 701 79524 328

056

Other Milds (W) 63 223 486 201 46 385 473 879

Brazilian Naturals (D)2 184 16426 786 7142 340 48721 829

046

Robutas (D/W) 131 291 1 370 637 314 923 2 025

131

Cameroon Total 35 000 514 077 52 019 549 104

Other Milds (W) 0 55 361

Robutas (D/W) 52 019 493 743

Congo, Dem. Rep. of Total 14 000 145 638 15 898 215 929

Other Milds (W) 8 170 72 105

Robutas (D/W) 7 728 143 824

Ecuador Total 50 000 360 286 29 832 129 797

Other Milds (W) 9 876 36 240

Brazilian Naturals (D) 3 795 42 981

Robutas (D/W) 16 161 50 576

India Total 150 000 1 991 596 215 938 2 618

292

Other Milds (W) 49 408 793 878

Robutas (D/W) 166 530 1 824

415

Indonesia Total 675 000 7 105 215 702 511 5 131

414

Other Milds (W) 1 136 3 736

Brazilian Naturals (D) 3 170 431 836

Robutas (D/W) 698 205 4 695

841

Papua New Guinea Total 100 000 931 069 127 968 1 106

678

Other Milds (W) 125 248 1 096

363

Robutas (D/W) 2 720 10 315

Tanzania Total 39 157 1 199 549 14 937 746 364

Colombian Milds (W) 6 315 762 684 5 387 522 110

Robutas (D/W) 32 842 436 865 9 550 224 255

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PERCENTAGE SHARE OF INDIA IN WORLD EXPORT

The above chart shows percentage contribution of India in world export, which was in increasing

mode in 90s. but from the 2000-01 it started decreasing and reached to 3.4% .

PERCENTAGE OF TOTAL OF IMPORT OF COFFEE FROM INDIA

25.25

10.97

8.78

5.634.46

3.24 2.8 2.47 2.42 2.35 1.87 1.73 1.7 1.451.43

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Italy33%

Russia

14%Germany12%

Belgium7%

Spain6%

Slovenia

4%

Ukraine4%

Finland3%

Greece

3%

France3%Japan

3%

Algeria2%

USA

2%

Portugal2%

Israel2%

COFFEE CONSUMPTION IN INDIA IN MT

Ind

ia is one of the major producers of coffee but its export got decreased in last 10 years due to heavy

and increased consumption of coffee within the country. The consumption of Coffee in India has

increased from 55000 metric ton to 85000 metric ton, which has decreased the Indian export of

coffee.

4.6 - COFFEE CONSUMPTION BY WORLD

Country 2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

EU 380.3

1

382.0

9

386.3

7

397.3

2

410.7

3

392.7

6

409.4

1

406.88

Japan 66.26 69.36 68.75 67.70 71.17 71.28 72.68 72.82

Norway 6.57 7.10 6.92 6.83 7.09 7.43 7.21 7.71

Switzerland 8.27 8.16 8.21 8.52 7.22 10.99 9.32 9.89

USA 187.4 195.5 191.2 201.9 209.7 209.9 206.6 210.46

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6 4 5 3 3 8 7

Total 648.8

6

662.2

5

661.4

9

682.3

0

705.9

4

692.4

5

705.3

0

707.77

The coffee consumption trend is very much high in European union which is increasing from last 10

years. After EU, USA is the largest consumer in the world and one of the potential future market of

India. Japan is also a good consumer of coffee with third highest consumption in world with 72.82

mt in year 2007-08.

PERCENTAGE OF COFFEE CONSUMPTION BY EU OUT OF TOTAL

WORLD IMPORT

The following graph shows the importance of European union for the all coffee exporter countries.

The EU alone consume more than 50% of worlds total coffee production. In the year 2007-08 EU

consumed 58% of total which was less in compare of year 2000-01.

ECONOMIES OF COFFEE

DOMESTIC COST OF PRODUCTION

Cost of production for 1 acre land area

P2P spacing 8 feet x 8 feet

Trees per acre (avg.) = 647

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Avg. yield of cherries = 4.5-5 Tonnes/ acre

Avg. bean obtained per acre = 2.5 Tonnes

Operating costs are as follows:

Production cost

Harvesting & PHT cost

Processing & Packaging cost

Marketing & Exporting cost

OperatingCost per acre

(A) ProductionCost (Rs.)

1.Landpreparation

a) Labourcost@ Rs.100/ mandays

b) Equipmentcost @ Rs. 200/ hr.

400

1,6002. Propagatingmaterial cost 5003. Fertilizer cost 8004. Herbicide/ Chemicalcost 5005. Irrigation cost @ Rs.250/ hr. for 10 hrs. 2,5006. Pruning cost @ Rs. 150/mandayfor 4 days 1,2007. Picking cost@ Rs. 200/ mandayfor 4 days 1,6008. Miscellaneouscost 1,5009. TOTAL COST OF PRODUCTION 10,600

Per unit Production Cost (Coffee Beans)Avg. Production per acre 2,600kgAvg. Productioncost per acre Rs. 10,600Unit Cost ofproduction (Rs./kg) Rs. 4.07

Avg. OperatingCost per unit production (Rs./kg)

A. ProductionCost 4.07B. Harvesting+ Post Harvesting Cost 15.00C. Processing + Packaging Cost 25.00D. Marketing + Exporting Cost 30.00TOTAL COST INCURRED (per kg) 74.00*

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Avg. PRICE IN AUGUST 2008 (per kg) 110.00*Profit 36*% Profit overCost Incurred 48.64 %*

4.7- FREIGHT CHARGES

The freight charges are dependent upon the destination

Different Service providers charges different rates depending upon the size and frequency of the

consignment

According to UPS Service guide :

EU comes under Zone 4 of Exporting destinations

United States comes under Zone 5

Australia comes in Zone 3

African Nations comes under Zone 7

INTERNATIONAL PRICING

Governed by ICO indicator

Futures price at NewYork Commodity Exchange

Prices expressed in US cents per lb

Types of prices:

Daily Prices

Average Weekly Prices

Monthly Prices

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Average Monthly Prices

Annual Prices

Top Exporting Countries

BASIS OF SHORT LISTING

Total Production for year 2007-08

Total Export for year 2007

% of total quantity exported worldwide

(000 bags of 60 kg each)

Top 12 Exporting Countries

2007-

08Country

Rank (Units in 000 bags of 60kg each in 2007-08) ExportedQty. Produced

Qty.

BRAZIL 1 28088 36070

VIETNAM 2 17936 23500

COLOMBIA 3 11300 12400

INDONESIA 4 4149 6446

GUATEMALA 5 3725 4000

HONDURAS 6 3312 3833

INDIA 7 3259 4850

MEXICO 8 2912 4500

PERU 9 2879 3015

UGANDA 10 2693 2750ETHIOPIA 11 2604 5733

COSTA RICA 12 1363 1882

Top Exporters from

IndiaSL.NO.

NAME AND ADDRESS TELEPHONE

1 Nestle India Ltd., No.60/62,

New Timber Yard Layout,

080-30610575

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Stage1, Mysore Road,

Bangalore.2 AllanasonsLtd., 4, J.A.

AllanaRoad, G.P.O. Box

No.997, Colaba, Mumbai

-400 001

022-2874455

3 Hindustan Lever Ltd.,

Brook Fields, P.B.3777,

MarathahalliPost,Bangalore-

37

080-28475021

4 Amalgamated Bean Coffee

Trading Ltd., 1,

RahejaChambers, 12,

Museum Road, Bangalore

080-25589581080-25580394

5 Tata Coffee Ltd., " Brigade

Point", No. 57, Railway

Parallel Road, Kumara Park

West, Bglre

080-23560695

6 RameshExports Ltd.,

4405/5, High Point IV Palace

Road,Bangalore-560

001.email

080 -22253520080 -22251427

7 ITC Ltd., 31, SarojiniDevi

Road, Secunderabad-500

003, Andhra Pradesh

040-27801914

8 Cholas Spices Private Ltd,

S.F.No.: 193/2,

12/2,Periyathotam,.

422-2647881

9 MadhuJayantiInternational

Ltd., P.B.No.511, 39,

Cunningham Road Cross,

Bangalore-52

080-51235801

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10 OlamExports (India)) Ltd., #

1103, "Ashwini" ,13th Cross,

Indiranagar2nd Stage,

Bangalore

080-51153325080-51153326

4.8 - TRADE POLICY REGULATIONS

INDIAN TRADE CLASSIFICATION (HS)

Effective from 1stFebruary 2003November 1, 2008

Source: Department of

Commerce

www.commerce.nic.inHeading

No

HS Code ITC (HS)

Code

Description Unit of Qty

0901 090111 09011121 Coffee, Roasted,

Not

Decaffeinated,AB

grade

Kg.

FOREIGN TRADE POLICY 2004-09

A new scheme called VisheshKrishiUpajYojana, which has been introduced to boost the exports of

fruits, vegetables, flowers, minor forest produce and their value-added products.

Duty-free import of capital goods under the Export Promotion Capital Goods (EPCG) scheme.

Capital goods imported under EPCG for agriculture permitted to be installed anywhere in the

agriexport zones.

Assistance to States for Infrastructure Development of Exports (ASIDE) funds to be also utilized

for the development of agriexport zones.

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Import of seeds, bulbs, tubers and planting material has been liberalized.

Export of plant portions, derivatives and extracts has been liberalized with a view to promote

exports of medicinal plants and herbal products.

The Produce CessLaws (Abolition) Act, 2006, was notified in the Gazette of India on 26

September 2006, in order to remove the cesson export of agricultural products and to encourage the

export of agricultural products

CODEX STANDARDS AND WTO/ SPS AGREEMENT

The two WTO agreements of most significance for international food trade are the :

1. Agreement on the Application of Sanitary and Phytosanitary Measures (commonly referred to as

the SPS Agreement)

2. Agreement on Technical Barriers to Trade (known as the TBT Agreement).

Codex standards and related texts, including on food labelling, are relevant under the TBT

Agreement.

The SPS Agreement refers to standards developed by Codex in the following areas:

codes and guidelines of hygienic practices;

contaminants;

food additives;

methods of analysis and sampling; and

veterinary drug and pesticide residues1

CODEX ALIMENTARIUS PESTICIDES MPL

Codex Alimentarius Commission, prescribes limits for various residues and contaminants in food

for human consumption.

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Codex standards are established establishing Maximum Residue Limits (MRL) for 17

agrochemicals in coffee beans.

Tolerance limits are prescribed by CODEX for various agro-chemical residues in coffee. Codex

agrochemical MRL (ppm)

Codex Alimentarius Pesticides

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POLICIES AND CLEARANCES REQUIRED

EXPORT REGISTRATION & ISSUE OF REGISTRATION -CUM -MEMBERSHIP

CERTIFICATE (RCMC)

An exporter may, on application, register with Coffee Board as one of the members of

Registered exporter of Coffee. On being registered, the applicant shall be granted a certificate

of Registration & on request RCMC shall be issued which will be valid for 5 years ending

31st March of the licensing year, unless otherwise specified. Application for registration may

be cancelled on payment of Rs 100 towards cost of Application

ISSUE OF EXPORT PERMITS & CERTIFICATE OF ORIGIN

Coffee Board issues Export permits under Rule 44(2) Coffee Act 1942 amended from time

to time along with Certificate of Origins to the registered exporter of coffee against

application, for coffee export

FURNISHING POST-SHIPMENT DOCUMENTS

The registered exporter shall submit the post-shipment documents on export of coffee

against each export permits obtained by them. The post-shipment documents viz., copies of

export permits, bill of lading with on Board Date Seal and certificate of origin duly endorsed

by the concerned Customs Authorities, along with other details viz FOB value etc, shall be

submitted to the Coffee Board within 45 days from the date of issue of export permits.

PESTICIDE MPL(ppm) PESTICIDE MPL(ppm)

Aldicarb 0.1 ppm Hexaconazole 0.05 ppmCarbendazim 0.1 ppm Oxamyl 0.1 ppmCarbofuran 1.0 ppm Permethrin 0.05 ppmCypermethrin 0.05 ppm Prochloraz 0.2 ppmDeltamethrin 2.0 ppm Propiconazole 0.1 ppmDisulfoton 0.2 ppm Terbufos 0.05 ppmFenamiphos 0.1 ppm Triadimenol 0.1 ppmFlucythrinate 0.05 ppm Triazophos 0.05 ppm

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INTIMATION REGARDING CHANGE IN CONSTITUTION

In case of change in ownership, constitution, name or address of an exporter shall be

intimated voluntarily within one month from the date of such change.

IMPORTANT CIRCULARS

QMS :The QMS or Logo scheme has been framed in order to protect the Image and Quality

of Indian Coffee in the International Market and to gain the confidence of the overseas

buyers. The Board has framed the Quality Marking Scheme w.e.f. 24/11/2000 for issue ofLogo Certificate for export of coffee to those who voluntarily opt for the Scheme, for the

Coffee cured by the Certified Coffee Curing Works.

ICB GRADING STANDARDS

Coffee Board issues Export Permits for export of coffee only to the Specified Types and

Grades of coffee.

EUROPEAN UNION IMPORT PROCEDURES

REQUIREMENTS FOR IMPORTING BY European Union

Product Classification and Tariff Nomenclature

Market for the product

Import Trade Regime

Animal Health Certificate

Plant Health Certificate

Certificate of Origin

Food Safety and Marketing Standards

Public Health Norms

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Environment Protection Norms

Product Safety

Technical Standardization

Packaging

Labelling

HEALTH CONTROL OF FOODSTUFFS OF NON-ANIMAL

ORIGIN

General principles and requirements of Food Law established in Regulation (CE) No.

178/2002 (OJ L-31 01/02/2002)

General foodstuffs hygiene rules according to Regulation (EC) No. 852/2004 (OJ L-226

25/06/2004)

General conditions concerning contaminants in food

Special provisions on Genetically Modified (GM) food and Novel food of Regulation (EC)

No. 1829/2003 (OJ L-268 18/10/2003)and Regulation (EC) No.258/97 (OJ L-43 14/02/1997)

General conditions of preparation of foodstuffs

Official control of foodstuffs

FREIGHT DOCUMENTS (TRANSPORT DOCUMENTATION)

Depending on the means of transport used, the following documents are to be filled in and

presented to the customs authorities of the importing European Union (EU) Member State

(MS) upon importation in order for the goods to be cleared:

Bill of Lading

FIATA Bill of Lading

Road Waybill (CMR)

Air Waybill (AWB)

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Rail Waybill (CIM)

ATA Carnet

TIR Carnet

PACKING LIST

The packing list (P/L) is a commercial document accompanying the commercial invoice and

the transport documents, and providing information on the imported items and the packaging

details of each shipment (weight, dimensions, handling issues, etc.)

The data generally included are:

Information on the exporter, the importer and the transport company

Date of issue

Number of the freight invoice

Type of packaging (drum, crate, carton, box, barrel, bag, etc.)

Number of packages

Content of each package (description of the goods and number of items per package)

Marks and numbers

Net weight, gross weight and measurement of the packages

LABELLING FOR FOODSTUFFS

All food stuffs marketed in the European Union (EU) must comply with EU labeling rules,

which aim at ensuring that consumers get all the essential information to make an informed

choice while purchasing their food stuffs.

GENERAL RULES ON LABELLING

Labels of food stuffs according to the general rules laid down by Council Directive

2000/13/EC (OJL-10906/05/2000) must contain the following particulars

1) Product name

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2) List of Ingredients

3) Net Quantity

4) Date of Expiry

5) Conditions for storage

6) Place of origin

7) Instructions for use

8) Lot marking

4.9 - Competitor Analysis Brazil

Largest Producer- Brazil is the worlds largest producer of coffee from very beginning , it

has also a large capacity of coffee consumption.

Largest Exporter- As brazil is the largest producer of coffee , though it has also a good

amount of consumption it is the largest exporter of coffee in the world . In last five years the

percentage export of brazil in worlds coffee export has decreased inspite of that also brazil

is the largest producer and exporter of coffee ( Arabica and robusta with special Brazilian

naturals)

Price setter- Since brazil is the largest exporter in worlds market of coffee it gets advantage

as price setter.

Major Economic Activity- Coffee production is one of the major part of Brazilian economic

activity, which contributes high proportion in Brazilian economy growth, since it gets

support from the government.

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Maximum employment- Coffee production is the major activity of Brazilian economy,

which also contributes in GDP in good proportion, which shows its a very vast field in

Brazil and because of its large size it provides large employement.

Brazil is the giant in this field of coffee production and export but still there are various

other hurdles like Vietnam , Columbia etc and various other emerging agri depended

economy.

Though brazil is having high consumption of coffee it has focused itself as a argest

exporter with the help of various means.

BRAZIL DOMESTIC COFFEE CONSUMPTION IN BAGS AND

PER CAPITA

SWOT ANALYSIS BRAZIL

STRENGTH

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Suitable soil condition- One of the greatest strength of Brazil coffee industry is the suitable

soil and environmental condition of Brazil, The whole Brazilian condition is very well for

coffee cultivation where the other producer of coffee like India does not have such type of

condition where the whole countrys condition is useful for coffee cultivation.

Large man power- The maximum number of population is employed in agriculture

(cultivation of coffee) so the Brazilian coffee industry has got large man power to work for.

Industry support/ Technology - Since Coffee cultivation is one of the major factor which

contributes in Brazilian economy, the whole coffee industry has a great industrial support and

technology support from the government and the coffee market itself. Innovative and latest

technologies gets used by the farmers to improve the production of coffee.

Vast area of crop/ Mechanization- Brazil has vast area present for cultivation of coffee

and well machinery is used well planned way.

No alternative- Brazil has big area present for cultivation and there is very less option

present to contribute in GDP, so by understanding the Less resources government and other

factors very well uses the Coffee cultivation to improve the Economy.

Regulated market- Brazil has well regulated market for coffee, other than India and other

countries.

WEAKNESS

Lack of other skills- As it is very clear that coffee cultivation is only major source ofemployment but in many areas people has very less skills regarding coffee cultivation and

other industries as well.

Non adaptability- The environment of Brazil creates very difficult for the population to

adopt other source of business .

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Depletion of resources- One of the main constraints is depletion of resources.

OPPORTUNITY

Friendly Policies- The government of Brazil understands the opportunity involved in coffee

cultivation, and due to lack of other resources government knows the importance of coffee

cultivation so, the policy framed by government regarding coffee cultivation is very friendly

in nature. Which does not only encourages the coffee cultivation in country but it also helps

the other nation to transect with Brazil.

Increasing awareness- To promote the coffee industry various steps has been taken, which

will certainly improve the awareness of people regarding the coffee cultivation which will be

helpful to grow the industry more in near future.

Expanding market- The increase in consumption of coffee worldwide provides a huge

market to brazil to expand.

Shift in Agriculture- Due to high chances of growth and wealth maximization most of the

people are shifting to agriculture, which is a good indicator of future growth of coffee

cultivation on Brazil

THREAT

Political Disturbances- The political disturbance and the political instability is one of the

biggest threat in the field of coffee industry, it does not only discourage the internal factors

but also the customers who transect with the Brazil regarding coffee.

Natural Calamity- Natural calamities some time badly spoils the coffee cultivation, since

Brazil is near to ocean the chances of tsunami and other cyclones are very high

Insect infestation- Insect infestation spoils the total production of the country

War/ Emergency situation- The other factors like war and emergency spoils the image of

country in the world and it ruins the trade of country with another country

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SWOT ANALYSIS INDIA

STRENGTH

Huge Man force- The large population in India and high involvement in agriculture is a

very good strength of Indian coffee industry.

Favourable soil- The various part of India is very much enriched with favourable soil of

coffee. Some part of India like Karnataka, Kerala, Andhrapradesh , Assam etc

Suitable climate- Indian climate also supports the groth of coffee.

WEAKNESS

Unregulated- The Unregulated market of Indian coffee industry is one of the weakness

which explains why the Indian coffee industry is not growing at its fullest.

Lack of skill- There is lack of skills in India which is working as a barrier, Indian coffee

industry can improved and grows to its fullest if well and skilled labour are employed to it.

Less risk takers- Since Coffee is still emerging sector in India there are vary less

entrepreneurs who wants to take risk.

Orthodox techniques- The lack of technology and non supportive techniques does not help in

coffee cultivation promotion

OPPORTUNITY

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Expanding Market- The Highly increased coffee consumption provides high expended

market for Indian coffee industry.

CSR- Various other large business firms are encouraging Agriculture as a part of their social

corporate responsibility.

Advent of Technology- Introduction of new technology in coffee industry is helping the high

cultivation of coffee.

Increasing awareness- Now a days government and various other organization are increasing

awareness in the field of agriculture, which certainly goi ng to improve the future production

of coffee.

Better profit ratio- coffee industry is providing high profit ratio, which is attracting various

investors in the field of coffee cultivation.

THREAT

Poor policies- The poor policies run by government does not attract investors and others to

trade with Indian coffee industry.

Political Disturbances- The political disturbance and the political instability is one of the

biggest threat in the field of coffee industry, it does not only discourage the internal factors

but also the customers who transect with the country regarding coffee.

Natural Calamity- Natural calamities some time badly spoils the coffee cultivation, since the

Indian borders are close to ocean, the chances of tsunami and other cyclones are very high

Insect infestation- Insect infestation spoils the total production of the country

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War/ Emergency situation- The other factors like war and emergency spoils the image of

country in the world and it ruins the trade of country with another country

TOP COFFEE CONSUMING NATIONS

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New Markets for our Coffee

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SWEDAN ENGLAND

ITALY USA

JAPAN

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REASONS BEHIND SELECTION OF NEW MARKETS

Market Potential

High Monetary Returns

Longevity

Country 2002

Consumpt

ion

2006

Consumpt

ion

%

changes

increaseItaly 5180 5472 5.6Sweden 1235 1306 5.7UK 2201 2836 28.8Japan 6875 7268 5.7USA 18871 20299 7.5

4.10 - FUTURE STRATEGIES FOR NEW MARKET

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Establishment of Export Promotion Council for Coffee

Government Regulation in Quality Testing and Processing

Duty Free Import for Processing Equipments

Extensive Marketing and Promotional Activities

Sponsoring Trade Fairs and Global Coffee Summits

Attractive and Durable packaging and Transportation

Regular Market Survey for Customer Satisfaction and Preferences

INDIAN COFFEE BALANCE OF EXPORT

NEGATIVES

POOR PROCESSING AND PACKAGING

UNREGULATED MARKET

POSITIVES

ADOPTION OF TECHNOLOGY

POSITIVE GROWTH

GOVERENMENT SUPPORT

INTERNATIONAL MARKET/HIGH PROFIT

HIGH PRODUCTION

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SUMMARY & FINDINGS

Indian coffee industry is growing at a very fast rate , India has grown up its export by

3% in last five years.

The coffee consumption of world has also increased dramatically, it has increasedvery much in EUROPEAN UNION, USA etc.

The coffee consumption in India has increased and reached to 85000mt per year.

The worlds and Indian increased coffee consumption provides huge local and global

market.

The new technologies and policies are introduced to the Indian coffee industry to

promote the cultivation of coffee.

Various initiatives have been taken by various corporate houses as their corporate

social responsibilities.

Indian soil and climate are well supportive for the coffee industry and India has alarge amount of population to employ in this industry.

The Indian coffee industry is going to help the Indian economy by providing

employment opportunities and it is also going to play a major role in Indian GDP.

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BIBLIOGRAPHY

www.ncausa.org

www.indiastat.com

www.google.com

www.commerce.nic.in

Transport Information Services, Germany

Coffee Board of India, Annual Report

UPS Rate and Service Guide

European Taric Code

International Coffee Organisation, Annual ReportCMIE Magazine

Marketing Research Naresh K. Malhotras
http://www.ncausa.org/http://www.indiastat.com/http://www.google.com/http://www.commerce.nic.in/http://www.ncausa.org/http://www.indiastat.com/http://www.google.com/http://www.commerce.nic.in/

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