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Daily Current Affairs for UPSC

Coffee Industry in India

Syllabus- Agriculture [GS Paper-3]

Context- In a significant growth of the Indian coffee industry, the Coffee Board of India organised a buyer-seller meeting at Dubai, marking a new chapter in the industry’s global expansion.

Historical Background

  • Origin: The word coffee got here from Ethiopia, where they nameed itqahve
  • Introduction in India: Coffee seeds were brought to India by Arab investors for use by the gentry. Arabs introduced coffee plantations in South India and Sri Lanka.
    • A Sufi, Baba Budan grew coffee plant around Chikamagaluru, Karnataka. 
  • Since 1830, British pioneers planted coffee estates in two kinds of coffee plants —
    • Coffee arabica at high altitudes, and Coffee robusta in lower reaches. 
  • The name Arabica comes as Arab trader qahve to Europe even as Robusta variety got here from West Africa and is more resistant to disease.

India’s Coffee Industry

  • Production: India is a number of the top 10 coffee-generating countries, with about 3% of the global output in 2020. 
  • Two varieties of coffee: Arabica and Robusta. Arabica has a higher market cost than Robusta coffee because of its slight aromatic flavor.
    • Robusta is the majorly produced coffee with a proportion of 72% of the overall production. 
  • Uniqueness: India’s coffee is precise inside the feel that it’s miles shade-grown.
    • Notably, 35% of the country’s coffee exports now comprise value-added and specialty coffees, showcasing a shift towards premium offerings. 
  • Major producers: Coffee is essentially produced in the southern part of India.
    • Karnataka is the most important producer accounting for about 70% of the total coffee production in India. 
    • Kerala is the second-largest producer accounting for about 23% and Tamil Nadu only 6%. 
    • Odisha and the northeastern regions actually have a smaller proportion of production.
  • Employment: The enterprise affords direct employment to more than 2 million human beings in India.
  • Exports: The country exports over 70% of its production. According to FAO statistics, India is the 8th biggest exporter of coffee by quantity.
    • India majorly exports Robusta coffee beans, a coffee bean variety with low acidity and high bitterness in comparison to Arabica coffee.
    • Almost one-third of the country’s overall coffee exports represent instantaneous coffee.
    • Top exporting locations: Italy, Germany, Belgium, and the Russian Federation are the most important importers of coffee from India

Challenges

  • Aging Plantations: A massive range of coffee plantations are aging, main to decreased productivity and requiring replanting with improved varieties.
  • Pest and Diseases: Coffee Leaf Rust and other diseases pose sizable threats, requiring higher investment in disease management practices.
  • Low Productivity: Compared to different primary producers, India’s coffee yield per hectare remains low because of traditional farming strategies and inadequate infrastructure.
  • Climate Change: Erratic rainfall, growing temperatures, and severe climate events are disrupting coffee production, leading to yield decline and best problems.
  • Price Volatility: Fluctuations in worldwide coffee costs can negatively affect farmer incomes and discourage investment.

Measures

  • Climate-Smart Agriculture: Promoting weather-resilient coffee varieties, colour management practices, and rainwater harvesting to conform to changing climatic situations.
  • Disease Management: Investing in studies and development of resistant varieties, early detection systems, and sustainable pest control strategies.
  • Replanting and Modernization: Encouraging replanting with high-yielding disease-resistant varieties and adoption of present day farming practices like drip irrigation and fertigation.
  • Value Addition: Supporting the established order of processing units, selling home intake of forte coffee, and exploring export opportunities for value-delivered products.
  • Promotion and Branding: Increasing domestic and international awareness approximately Indian coffee by branding, participation in trade fairs, and geographical indication recognition.

Government Initiatives

  • Subsidies: The Government of India took the initiative to provide subsidies to the farmers of US$ 2,500-US$ 3,500 per hectare for developing coffee in the conventional regions. 
  • Coffee Development Programmes (CDP): The government also helps the non-traditional coffee-growing areas beneath Coffee Development Programmes (CDP). 
  • National policy of tribal development: Coffee cultivation is being encouraged in non-traditional areas including Andhra Pradesh, Odisha, Maharashtra, the northeastern states, and Andaman and the Nicobar Islands. 
  • Export advertising: Under various export advertising initiatives, transit and freight assistance are furnished to assist maximize export earnings.
  • Incentives for exporting high-price coffee: It aims to maximise export income through improving the market percentage of cost-introduced coffees and excessive-value differentiated coffees in important high-fee global markets which includes the united states, Canada and Japan.

Way Ahead

  • Overall, addressing associated challenges and enforcing effective measures are vital for ensuring the sustainability and boom of India’s coffee industry, enhancing farmer incomes, and contributing to the country’s economic development.
  • Public-private partnerships and integrating the coffee industry with rural development initiatives can create livelihood opportunities and enhance dwelling standards in coffee-growing  regions.

Source: News on AIR

UPSC Prelims Practice Question:

Q.Match List-I with List-II and select the correct answer using the code given below the Lists: (2008)

        List-I (Board)                List-II (Headquarters)

a. Coffee Board             1. Bengaluru

b. Rubber Board            2. Guntur

c. Tea Board                  3. Kottayam

c.Tobacco Board           4. Kolkata

 Code: A B C D

a. 2 4 3 1

b. 1 3 4 2

c. 2 3 4 1

d. 1 4 3 2

Ans: “b”

Q.Though coffee and tea both are cultivated on hill slopes, there is some difference between them regarding their cultivation. In this context, consider the following statements: (2010)

  1. Coffee plant requires a hot and humid climate of tropical areas whereas tea can be cultivated in both tropical and subtropical areas.
  2. Coffee is propagated by seeds but tea is propagated by stem cuttings only.

Which of the statements given above is/are correct?

a. 1 only

b. 2 only

c. Both 1 and 2

d. Neither 1 nor 2

Ans: “a”

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