Question : Production and Export of Coffee

(a) the details of coffee production in the country during the last three years and the current year, year-wise indicating the rate of growth therein and the current position of India among other coffee producing countries in the world;
(b) the total quantity and value of coffee exported from the country during the said period, country-wise;
(c) whether any steps are being taken by the Government to improve the working conditions of coffee plantation workers and if so, the details thereof; and
(d) whether there is any proposal for allowing Foreign Direct Investment in coffee plantations in India and if so, the details thereof along with its present status?

Answer given by the minister

THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE)
(SMT. NIRMALA SITHARAMAN)

(a) The details of coffee production in the country during the last three years and the current year, year-wise indicating the rate of growth rate in coffee production, is as follows:
Year Production (Tonnes) % change over previous year (%)
2014-15 327000 7.39
2015-16 348000 6.42
2016-17* 316700 -8.99
2017-18** 350400 10.63
* Post-Monsoon estimate ** Provisional Post Blossom Estimate
During the current year, India stands 7thposition in the World in terms of coffee production.

(b) The total quantum and value of coffee exported from the country during last three years are as under;
Year Quantity(MT) Value (Rs. Crores)
2014-15 272323 4807
2015-16* 318059 5176
2016-17* 356445 5650
2017-18*
(01.04.2017 to 11.07.2017) 119025 1936
* Based on permits issued
The country – wise export of coffee and revenue generated during last three years and the current year details are enclosed in Annexure-I.
(c) The working conditions of coffee plantation workers are governed in accordance with the Plantation Labour Act 1951, Equal Remuneration Act 1976, Employees Provident Fund and Miscellaneous Provisions Act 1952, Gratuity Act 1972, Bonus Act 1965, Workman Compensation Act 1923. The Plantation Labour Act (PLA), 1951, administered by Ministry of Labour & Employment and enforced by the concerned state governments requires the employers to provide the workers with housing, medical facilities, sickness and maternity benefits and other forms of social security measures. There are provisions for educational facility for the children, drinking water, conservancy, canteens, crèches and recreational facilities for the benefit of the tea plantation workers and their families in and around the work places in the tea estates. The Labour Department of the State Governments monitor the implementation of the provisions of this Act.
Apart from the above, Coffee Board has been providing the welfare support to children of labourers and tiny farmers under the scheme “Integrated Coffee Development Project”. Educational stipend and financial assistance is provided to the children of labourers and children of tiny growersin order to ensure that the children of plantation workers pursue higher studies after Xth class. During the XII Plan period, an amount of Rs.10.34 crore has been extended to 41,927 beneficiaries.
(d) As per extant Foreign Direct Investment (FDI) policy, FDI upto 100% under the automatic route is permitted in Coffee plantations subject to sectoral conditions. For sectors under automatic route no prior approval of the Government or the Reserve Bank of India is required.

ANNEXURE-I

India’s total coffee exports – country wise
Quantity in Metric Tonnes and Value in Rs. Crores
Country 2014-15 2015-16* 2016-17* 2017-18*
(1.4.2017 to 11.7.2017
Qty Value Qty Value Qty Value Qty. Value
ITALY 59968 999.31 79653 1139.60 83821 1158.46 28340 412.57
GERMANY 25021 466.71 27600 463.23 34933 549.78 14252 227.67
RUSSIAN FEDERATION 20994 388.88 27838 470.89 29087 507.59 8597 155.47
BELGIUM 12082 248.88 16600 305.85 20046 367.71 6282 129.19
TURKEY 15852 276.35 14292 243.12 17230 280.96 3922 68.68
POLAND 4422 67.06 6507 92.22 11139 172.3 4292 68.05
SLOVENIA 8102 115.17 10886 134.65 10289 123.4 3553 49.99
SPAIN 5421 80.84 6297 81.97 9631 127.25 3512 50.06
GREECE 5919 88.42 6646 86.14 7790 103.47 1619 24.49
U.S.A. 5763 102.87 5742 95.96 7383 131.25 2802 47.58
OTHERS 108779 1972.88 115998 2062.28 125096 2127.61 41854 702.53
Total 272323 4807.37 318059 5175.91 356445 5649.78 119025 1936.28
*Based on export permit.

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