In a bid to modernize India’s coffee industry, and further its domestic market and promote exports, the government is set to introduce a new coffee promotion bill. This bill aims to revamp the functioning of the Coffee Board of India, which has been necessitated due to several factors that were not included in the original mandate of the Board but are now required to be integrated into its operational framework.
Key Features of the Bill
The new bill seeks to upgrade various functional areas of the Coffee Board. These include support for the production, research, extension and quality improvement, promotion of coffee, and skill development of growers. In addition, the bill will simplify documentation and procedures, such as replacing the existing five-year validity of Registration cum Membership Certificate (RCMC) with a one-time exporter registration and introducing once-off registration of curing units. A time-bound procedure for the issuing of the Registration Certificate will also be implemented.
Significance of the New Bill
The significance of this bill pertains to the potential for job creation and opportunities for business entrepreneurship along the entire coffee value chain. Consumers stand to enjoy high-quality coffee comparable to international standards. The interests of laborers in the plantations, processing units, and coffee communities will be protected. Furthermore, the bill will facilitate ease of doing business, thus potentially boosting the sector’s growth.
Why Is a New Law Needed?
The need for a new law in the coffee sector relates to current rules and regulations that are considered redundant. With its provisions dating back 80 years, the previous act is no longer relevant in the contemporary landscape. Over the past decade, the nature of coffee cultivation, marketing, and consumption has evolved significantly, making an updated legal framework necessary.
Current Status of Coffee Production in India
India is one of the top ten coffee-producing countries globally, contributing about 3% to global output in 2020. The country produces two types of coffee: Arabica and Robusta. Due to its mild aromatic flavor, Arabica has a higher market value than Robusta. Coffee plants thrive in hot and humid climates, with temperatures between 15°C to 28°C and rainfall ranging from 150 to 250 cm. Karnataka, contributing around 70% of the total coffee yield, leads the country’s production. Other producer states include Kerala, Tamil Nadu, Andhra Pradesh, and Odisha. Based on Food and Agriculture Organization (FAO) statistics, India ranks as the eighth largest exporter of coffee by volume.
The Coffee Board of India
The Coffee Board of India is a statutory organization established under Section (4) of the Coffee Act, 1942. It operates under the administrative control of the Ministry of Commerce and Industry, Government of India and consists of 33 Members including the Chairperson. Headquartered in Bengaluru, the Board’s core activities are research, extension, development, market intelligence, external & internal promotion, and welfare.
Relevance in UPC Civil Services Examination
The coffee industry’s landscape and this new legislation can be pertinent for aspirants of the UPSC Civil Services Examination. For instance, a past question required matching various boards, including the Coffee Board, with their respective headquarters. Having knowledge about these changes in the coffee sector can certainly give candidates an edge.
Coffee Board and Other Boards – A Brief Overview
Established through the Coffee Act VII, 1942, the Coffee Board promotes coffee production in India. Other similar organizations include the Rubber Board, constituted under the Rubber Act, 1947 for rubber industry development, the Tea Board, established by the Tea Act in 1953 to promote tea cultivation, processing, and trade, and the Tobacco Board, constituted under the Tobacco Board Act, 1975 for tobacco industry development. These boards are headquartered in Bengaluru, Kottayam, Kolkata, and Guntur respectively.
