Coffee Promotion Bill

• 29 Jul 2022

For Prelims: Coffee Board of India, Coffee production in India

For Mains: Government Policies and Interventions

Why in News?

Recently, the government is going to introduce a coffee promotion bill to modernize the functioning of the Coffee Board, promote exports, and support the development of the domestic market.

What is the New Bill About?

• About:
  • It aims to modernize the functioning of the Coffee Board of India.
  • It would address several functional areas of the Coffee Board, such as support for production, research, extension, and quality improvement, promotion of coffee, and skill development of growers.
  • Many such activities were originally not included in the mandate of the Coffee Board but now need to be incorporated into its functions and powers.
• Significance:
  • With the expansion of the coffee industry, there would be the creation of jobs and chances for business entrepreneurship in all sectors of the coffee value chain, from production to consumption.
  • Furthermore, consumers will receive high-quality coffee comparable to those of other countries.
  • It will also protect the interests of the labor in plantations, processing units, and coffee communities.
  • It will promote ease of doing business by simplifying documentation and procedures, including replacing the existing five-year validity of Registration cum Membership Certificate (RCMC) with a one-time exporter registration and bringing in a one-time registration of curing units.
    • There will be a time-bound procedure in the Bill for issuing the Registration Certificate.

What was the need to replace the old law?

• The earlier act was almost 80 years old and was obsolete in today's time.
  • Its provisions were relevant to that time.
• Also, currently, many rules and regulations, especially those pertaining to the marketing of coffee, are redundant.
• Over the past 10 years, there has been a paradigm shift in the way coffee is grown, marketed, and consumed.

What is Present status of Coffee Production in India?

• India is among the top 10 coffee-producing countries, with about 3% of the global output in 2020.
• India produces two types of coffee: Arabica and Robusta.
  • Arabica has higher market value than Robusta coffee due to its mild aromatic flavor.
• Climatic conditions:
  • Coffee plants require hot and humid climate with temperature varying between 15°C and 28 °C and rainfall from 150 to 250 cm.
    • It does not tolerate frost, snowfall, high temperatures above 30°C and strong sunshine and is generally grown under shady trees.
  • Coffee is largely produced in the southern part of India.
    • Karnataka is the largest producer accounting for about 70% of the total coffee production in India.
• Producer States:
  • Coffee is mainly produced in Karnataka, Kerala, Tamil Nadu, Andhra Pradesh and Odisha.
• Exports:
  • According to The Food and Agriculture Organization (FAO) statistics, India is the eighth largest exporter of coffee by volume.

What is the Coffee Board of India?

• The Coffee Board is a statutory organization constituted under Section (4) of the Coffee Act, 1942 and functions under the administrative control of the Ministry of Commerce and Industry, Government of India. The Board comprises 33 Members including the Chairperson.
• The Board is mainly focusing its activities in the areas of research, extension, development, market intelligence, external & internal promotion, and welfare measures.
• It is headquartered in Bengaluru.
• The Board has a Central Coffee Research Institute at Balehonnur (Karnataka).

UPSC Civil Services Examination Previous Year Question (PYQ)

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
D. 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)

Exp:

• Coffee Board: It was established through the Coffee Act VII, 1942. The Coffee Board, under the administrative control of Ministry of Commerce and Industry, is an organisation that promotes coffee production in India. It is headquartered in Bengaluru.
• Rubber Board: It was constituted under the Rubber Act, 1947 and Rubber Rules 1955. Rubber Board is a statutory body under the Ministry of Commerce and Industry for the overall development of the rubber industry in the country. Head Office of the Board is located at Kottayam in the State of Kerala.
• Tea Board: It was established by the Tea Act in 1953. The Tea Board of India is a State agency of the GoI established to promote the cultivation, processing, and domestic trade as well as export of tea from India. It is headquartered in Kolkata.
• Tobacco Board: It was constituted as a statutory body on 1st January, 1976 under Section (4) of the Tobacco Board Act, 1975. The Board is headed by a chairman with its headquarters at Guntur, Andhra Pradesh. It is responsible for the development of the tobacco industry.
• Therefore, option (b) is the correct answer.

Source: BS