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Rejuvenating the Indian Coffee Industry - Coggle Diagram
Rejuvenating the Indian Coffee Industry
Context
It has been weighed down by the high cost of inputs and production as well as labor shortage
Coffee cultivation is becoming an increasingly loss-making proposition in India
Coffee plantation: Key facts
It grows on hilly slopes at the height of 900-1800m
16° – 28°C temperature, 150-250cm rainfall and well-drained slopes are essential for its growth
Low temperature, frost, dry weather for a long time and harsh sunshine are harmful for its plant
Coffee is a tropical plantation crop
Coffee Cultivation in India
More than half is produced by Karnataka alone, followed by Kerala and Tamil Nadu.
Arabica variety initially brought from Yemen is produced in the country.
It ranks 6thin the world in coffee production.
Indian coffee is highly rated and commands premium prices in the global coffee markets.
India contributes about 4% of the world’s total coffee production.
Challenges
Emergence of new diseases
Low availability of labour
Impact of heavy rains
High input cost
Impact of Climate Change
What aggrieves present crisis?
Impact of Exports on cost competitiveness
High Cost of financing
Volatility in market prices marginalizing producers
No pricing mechanism
No adequate fund support by government
Way forward
Government should permit to plant alternate crops
Creating in addition revenue streams
Coffee Act and the new Coffee (Promotion and Development Bill), 2022
Alternative source of revenue