Presentation of Coffee 2.

8/8/2019 Presentation of Coffee 2.

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GROUP MEMBERS

YEAR 2008-09

T.Y.BCOM

(BANKING &INSURANCE)


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Coffee marketing

IntroductionInternational coffeeorganization

India's pre-liberalizationmarketing chainIndia's after liberalization chainMedium term export strategyfor coffeeFuture strategies for newmarket


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Financial assistance in exporting

coffee

INTRODUCTION

EXPORT FINANCE IN INDIA

PRE-SHIPMENT FINANCE

POST-SHIPMENT FINANCE

COFFEE SCHEME:

SUPPORT TO SMALL

GROWER SECTOR SCHEME

INTEREST SUBSIDY

SCHEME FOR LARGE AND

SMALL GROWERS


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INTRODUCTION

Coffee is a major export

commodity

in developing countries.

Before

liberalization heavy

taxation also

made coffee an important

source of

revenue. The government totake over

Marketing because of the

difficulties

faced by the marketers.


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ICO(INTERNATIONAL

COFFEEORGANIZATION)

The ICO had profound

impact on the

World coffee

market.coffee producingcountries & coffee

importing members of

OECD were members

were

of ICO .

Government of all major

coffee producing

companies had wanted to

take some joint market-

controlling measures doingso would have been

difficult and costly, given

that begun liberalizing

their coffee sub sector.


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Producers

Coffee Board

Domestic market

(30%)

Export

(70%)

Pre- liberalization marketing chain

Before liberalization, the producers of coffee were selling

their coffee production to Coffee Board at fixed price. On

the basis of curing works like cleaning, sorting and

grading, Coffee Board decide to market this goods in

market in proportion of 30 % to Domestic Market and 70

% for Exportation.


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Producers

Exporters

Domestic market Export

After liberalization, producer started to sell their product

in domestic and international (export) market on auctionbasis and role of coffee board was shifted from marketing to

research,extention & promotion.

POST-LIBERALIZATION MARKETING CHAIN

Thus producers were satisfied after liberalization of

marketing chain because that made Export to customers

directly, avoiding implicit taxes (sales tax).

AUCTION


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MEDIUM TERM EXPORT STRATEGY FOR COFFEE

Cost reduction to improve competitiveness.Improving quality perception of Indian

coffee.

Integrating Indian coffee with the global

coffee trade.

Guarantee reliability of exporters.Carryout a major communication initiative in

key overseas markets to enhance the image of

Indian coffee as well as to improve market

share.

Participation in important overseas trade fairs

involving exporters and grower exporters.

Organizing buyer-seller meets between Indian

exporters and overseas buyers in key markets.


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FUTURE STRATEGIES FOR NEW MARKET:

Establishment of Export Promotion Council for Coffee.

Government Regulation in Quality Testing andProcessing.

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 Satisfactionand Preferences.

Future Strategies forNew Market:


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Financial assistance in exporting coffee

introduction

EVERYBUSINESS REQUIRES FINANCE. EXPORT

FINANCE REFERS TO THE FINANCE OF THE

GOODSFROM HOME COUNTRY TO THE IMPORTERS

PORT. THE EXPORT FINANCING BEGINSASSOON

ASAN EXPORT ORDER IS RECEIVED AND

ACCEPTED.. MOST OF THE EXPORT TRADE IS

CARRIED OUT ON CREDIT BASIS. IT TAKS 3 TO 6MONYHSTO RELISE THE EXPOTBILLS.

MEANWHILE, THE EXPOTER HAS TO FURTHER

ORDERS FOR WHICH ADDITIONAL WORKING

CAITAL IS REQUIRED.


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THE NATURE OF EXPORTFINANCE MAY BE SHORT

TERM OR LONG TERM

CREDIT. SHORT TREM CREDIT

FACILITY IS EXTENDED FOR

A PERIOD FROM 30 DAYS TO

180 DAYS WHICH IS

GRANTED BY COMMERCIAL

BANKS. AND LONG TERM

FINANCE IS

PROVIDED FOR APREIOD FROM 5YEARS TO 2O

YEARSWHICH IS PROVIDE BY

EXIM,ECGC AND IDBI BANK.

EXPORT FINANCE IN INDIA


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Pre shipment and post shipment finance


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Support to Small Grower

Sector Scheme:

Financial incentives are given for

taking up the following Capital

Investments in the farms of the

Small Coffee Growers:

Replanting.

Water Augmentation.

QualityUpgradation.

Pollution abatement measures

To establish/set up appropriate

infrastructure in the farms, and

to achieve value additions.

COFFEE SCHEMES


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Interest Subsidy Scheme for Large andSmall Growers:

To provide financial relief to small coffee

grower sector on the interest charged by thefinancial institutions on extending the

working capital/crop hypothecation loans,

Interest Subsidy Scheme has been introduced

on year on year basis subject to the approval

of government @5% for small growers and

3% for large growers.


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Conclusion

Coffee is a major export commodityin developing country like India andliberalisation of coffee market has

given rise to competition and tosurvive in this competitive market

newer and newer strategies are needto be formed to take the advantage ofopportunities arising in this market.

Simultaneously Financing alsoplays an important role in

developing coffee market and coffeeexport


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THANK YOU

Presentation of Coffee 2.

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