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India: Controversy brewing over coffee production figures


Export numbers exceed that of output in 2010-11 crop year

M. R. Subramani
The Hindu

October 9, 2011

CHENNAI, OCT. 9 - A controversy has cropped up over the country's coffee production figures. While the Coffee Board admits there could be a bit of problem with its projections, exporters and growers are divided on the issue. The confusion has also given way to a controversy over how much coffee is actually being consumed domestically.

The problem arose after the Coffee Board's export data for the 2010-11 crop year (October-September) were released. According to the Board, exports last season were 3.57 lakh tonnes (lt), a 33 per jump from 2.68 lt the previous year.

The important fact here is how have exports hit 3.57 lt when production was estimated at 3.02 lakh tonnes. Even if allowance is given for imports for re-exports (37,500 tonnes) and export of crop from previous years, the figures don't tally if domestic consumption is taken into consideration.

The Coffee Board statistics show that over 80,000 tonnes are being consumed every year domestically.

“The Coffee Board's production figures are fairly accurate. There could be some deviation but they are too minor. Maybe, exports could be five per cent less since proof of actual shipments is produced late,” said Mr Jawaid Akhtar, Chairman, Coffee Board.

“Also, exports of beans are not basically from that crop year alone. For example, the 2008-09, 2009-10 and 2010-11 crops could have been shipped during 2010-11. So that should explain for the figures not tallying,” Mr Akhtar said.

“We feel the last season (2010-11) crop was underestimated by 20,000-25,000 tonnes,” said Mr Ramesh Rajah, President, Coffee Exporters' Association of India.

“Last year's crop was historic as far as production is concerned. The crop should definitely have been 3.4 lakh tonnes,” said Mr Amit Pant of Olam Agro India Ltd.

“The Coffee Board's figures are the most authentic and we would prefer to go by it,” said Mr Shaji Philip, Chairman of the United Planters' Association of Southern India's Coffee Committee.

ACTUAL AREA

“Maybe, the Coffee Board has not taken into credit the actual area under the crop. With growers not having to get Coffee Registration Certificate (CRC) to cultivate coffee, additional areas are not being recorded,” said Mr Bose Mandanna, a former vice-chairman of the Coffee Board.

The practice of growers having to get CRC was discontinued in 1991 after the Government liberalised the coffee sector. Till 1991, growers had to compulsorily give coffee to the Board which would then decide the quantum to be allocated for exports and domestic market.

“We don't think much additional areas have come under coffee. But productivity seems to have improved,” said Mr Rajah.

“Kudos to better crop management by growers, there has been a resurgence in production,” said Mr Pant.

“We had been from the beginning of last season reiterating that the crop was higher but growers were always for pegging the production lower,” said Mr Rajah.

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