Coffee

Coffee is the second largest traded commodity in the world, next only to petroleum and is popularly referred to as
'Brown Gold'. Coffee is grown in about 80 countries across the globe, of which over 50 are considered to be the major
producers. India is one of the major coffee producing countries and ranks sixth in the world after Brazil, Columbia,
Vietnam, Indonesia and Mexico. With only about 2 per cent share in the global coffee area, India contributes about 4
per cent towards the world production and between 4 to 4.5 per cent of global coffee exports. In India, coffee is
cultivated in about 4.10 lakh hectares mainly confined to southern states of Karnataka (57%), Kerala (21%) and Tamil
Nadu (8%), which form traditional coffee tracts. Coffee is also grown in non-traditional areas like Andhra Pradesh and
Odisha as well as North Eastern States. Indian Coffee industry provides employment opportunities to more than five
lakh workers in the growing sector and an equal numbers get indirect employment in processing and trade.
Coffee production
The production of coffee has declined by 3.48 per cent to 304500 tonnes in the financial year 2013-14 as compared
to 315500 tonnes in the previous year. The production decline was mainly due to drought and heavy rains. Coffee
areas had witnessed a long drought period during April-May financial year 2014 which resulted in heavy proliferation
of white stem borer causing considerable loss to Arabica plants and unusually heavy and continuous rains from June
to August financial year 2014 which resulted in diseases like black rot, stock rot and berry drop on account of wet
conditions. Continuous rains did not even allow carrying out of routine cultural operations necessary to protect coffee
plants.

Coffee Exports
In FY 2014, Indias coffee exports registered a marginal growth of 2.88 per cent to 313035 tonnes as compared to
304251 tonnes in last year, on account of a sharp increase in shipments during the fourth quarter buoyed by firm
global prices. In value terms, exporters earned $812 million, which was 7.6 per cent lower than the previous year. In
2012-13, the value of coffee exports stood at $879 million. The decline in value was mainly due to the decline in
prices through the last financial year.
However, in rupee terms, the value was almost the same as last year due to the depreciation of rupee against the
dollar. The value of exports in Indian rupee terms stood at Rs 4,769 crore in FY14 against Rs 4,639 crore, a marginal
growth of 2.8 per cent. The unit value realisation was flat at Rs 1,52,360 a tonne against Rs 1,52,466 a tonne in
2012-13. In FY15, Indias coffee exports are likely to decline mainly due to lower crop harvested for 2013-14.

Rising Consumption of coffee

Coffee consumption in India has increased by a 40 per cent to 90 grams over the last decade however, is still below
the European average of 4 kg a person a year. In the last 5 to 6 years, the domestic coffee consumption growth has
been by 5 per cent. There is potential to increase this in the next couple of years. Coffee Board has proposed a slew
of measures to be taken up in the 12th Plan.
Growing Coffee Caf Culture in India
Hundreds of western-influenced coffee shops have emerged across Indias major and second tier cities over the
past decade. Coffee now competes against the once dominant tea in these cafes, especially among younger
consumers. A growing willingness to consume food and drink outside the home and increasing disposable income are
helping to fuel the growth. The major entrants chains in India are Barista Lavazza, Caf Coffee Day, Cafe Pascucci,
BRU World Caf, Cuppa Joe, Starbucks, etc.
Government Initiatives for the tea and coffee sector

The government has taken various measures to boost the production and export of plantation crops like tea
and coffee through the Plantation Commodity Boards which provide financial and technical assistance to the
growers and the industry. The help is offered to the growers and the industry for planting, replanting,
rejuvenation, quality upgradation, value addition and market promotion.

The government is planning to empower tea producers especially small tea growers (STG) with a new threetier, real-time and web-based quality checking-cum-standardisation system which will help Indian tea
industry maintain the global health food parameters of tea leaves and made-tea.

The government will come up with two more laboratories in the eastern region in addition to its existing three
Tea Research Association (TRA) labs in Kolkata, Guwahati and Siliguri.

Two tea councils have been set up, one for South India and one for the north, in order to monitor the quality
of tea meant for export and for imported teas meant for re-export. This initiative has helped improve the
quality image of Indian tea abroad and it is worthwhile to note that during the last one year, not a single
consignment of tea has been returned due to poor quality.

In a bid to fetch higher prices in international markets, the Coffee Board of India has kicked off a branding
initiative for Indian coffee. The Board intends to create a common brand to market Indian coffee, especially
those grown in the Western Ghats and Araku Valley in Andhra Pradesh.

Challenges
High cost of production and low productivity - The production entails risk on account of weather conditions and falling
prices. Labour cost is quite high since hand picking of tea is labour intensive.
Increasing competition in the Global Tea Market - India is a major exporter of CTC tea and faces stiff competition from
Kenya. Demand for Kenyan teas is increasing due to relatively younger bushes which are of higher quality and is
better suited for tea bags. Their labour costs are comparatively lower. Therefore, the tea industry in Kenya is more
competitive than the Indian tea industry as is reflected by Indias diminishing leadership in key markets.

Slower pace of re-plantation - Indias productivity has not picked growth due to slower pace of re-plantation of old
bushes. With no substantial increase in tea acreage the increase in productivity can be achieved through the replantation of old bushes. Lack of bush replantation and rejuvenation of bush health are major deterrents for Indian tea
production. Over 1,48,305 hectare or 37% of entire Indian tea land is hosting bushes over 50 years of age those
which have crossed their optimum producing age. Compared to that, over 70% tea land in Kenya and 68% in Srilanka
are with bushes less than 40 years old. Entire tea plantation in Vietnam is less than 20 years old and near 35% of
Chinese tea plantation is less than 10 years old.
Outlook
Indias tea and coffee industry is presently not in good shape on account of lower production estimates, which in turn
may impact countrys export scenario. The production of the tea and coffee are estimated to be lower on account of
unfavorable weather condition. With this, the country now needs to draw number of initiatives in order to strengthen
the stand in the global market and tap the potential market by improving the standards of plucking thereby enhancing
the quality of the product sold. Further, new strategies aimed at adding value and reducing production and marketing
costs are also needed. Value addition and diversification for a wide range of tea products need to be developed for
balancing the supply demand scenario.

Tea-coffee industry witnesses rise in consumption

Thursday,October 17,2013

Tea and Coffee are among the most widely consumed beverages in world. Indian tea and coffee
industry, being important source of revenue for various states, is also an important contributor
to the foreign reserve of the country. Besides strongest contributions to the country's economy,
industry also play important role on environmental front, through sustaining the fragile
ecosystem of the region. Tea and coffee plantation are one of the biggest carbon sinks and
conservatory of flora in the world.
Though, tea is cultivated in over 35 countries, a few nations including China, India, Sri Lanka,
and Kenya account for around 75% of global tea production. India is the second-largest tea
producer and consumer after China and fourth-largest tea exporter after Kenya, China, and Sri
Lanka. Indian tea industry is highly organised with around 72% of the total area under tea
cultivation and around 74% of the total production coming from the organized players. At
present, tea in India is cultivated in 15 states over an area of 5,80,000 hectare, representing
around 16% of the total area under tea cultivation in the world.
Likewise tea, Coffee is also among the most popular consumed beverages, offering intriguing
subtlety and stimulating intensity. Currently, coffee is cultivated across 80 countries particularly
in Central and South America nations and has also become the second-most traded commodity
in the world after crude oil. India is the only country that grows all of its coffee under shade as
countrys coffee cultivation regions have diverse climate conditions, which are well suited for
farming of different varieties of coffee such as Arabicas and Robustas. India ranks seventh in
the world major producing countries and accounts for around 4% share in world production and
around 5% of global coffee export. Meanwhile, Indian people give more preference to tea over
coffee as the country consumes around 80% of the total domestic tea production as against the
coffee where only 30% of the total production is consumed and remaining is exported.
Rising domestic consumption of tea and coffee
In India, the penetration of tea is purportedly in the range of 96% to 99% in both urban and
rural areas of the country. On the other hand, coffee is mainly consumed by developed countries
and the major focus of the domestic coffee producers remain on the export which constitutes
around 70% of the total coffee production. Over the past few years, India has been witnessing a
tremendous growth in domestic consumption of tea and coffee. Presently, domestic annual
consumption of tea stands at around 890 M Kgs, while, coffee consumption is at around 120 M
Kgs. Consistent rise in these beverages consumption has been triggered by rising youth
spending, paucity of alternative hang-outs, favorable demographics and an increasing number
of new office complexes. Rising consumption is also increasing the potential for increase in

retail outlets in the country. Changing life style and increased disposable income is driving the
younger generation in urban areas to tea and coffee outlets. Further, increasing health awareness
among people is making them opt for the health benefits of green/herbal tea and healthy coffee
drink as compared to aerated drinks which have adverse health impact in the long run. As the
domestic demand for tea and coffee gets stronger, domestic manufacturers and brands are
investing in mechanization and improving quality in order to leverage growth opportunities.
Domestic consumption of tea and coffee is likely to grow at significant pace in the future.
Domestic tea production gains momentum
All varieties of tea is grown from the same plant but processed differently at the factory to
produce black, green, white and yellow tea. India is the second-largest tea producer in the world
representing 23% share in the world total production. Black and green are two major types of
tea of with black tea constituting around 75% of the total global production and over 90% of the
market in Western countries. India is the largest producer as well as consumer of black tea in
the world. In India, around 98% of the total domestic production is contributed by four major
tea growing states including Assam (51%), West Bengal (23%), Tamil Nadu (17%) and Kerala
(7%). Indian tea production, which had been under pressure over the past few quarters, showed
a remarkable recovery in June-August period of 2013. Domestic tea production grew by 7.3%
to 445.5 Million Kgs in June-August, 2013 as compared to 2.6% growth recorded in the same
period of previous year. The high production growth during the reported period was mainly on
the back of strong monsoon in tea producing region like Assam. Therefore, Indian tea
production is likely to surge in coming future owing to the better weather conditions.

Tea prices likely to come down in near future

Tea is commonly sold through auction in the country, while the auction prices vary with both
the quality and quantity of tea on offer and the demand for tea at any point of time. The steady
increase in domestic consumption and marginal increase in production have been putting
pressure on the domestic tea prices over the past few years. Indian tea auction price has
increased by 37% in 2012 at Rs 131.15 per Kg particularly due to the sluggish domestic output
impacted by unfavorable weather conditions. However, the situation improved in 2013 as tea
auction price in the country increased by only 9% to Rs 132.7 per Kg in the month of August
from Rs 121.05 per Kg in January. High tea production on the back of better weather conditions
was main reason for the significant improvement in domestic tea prices in the reported period.
During January- August period of 2013, Indian tea production increased by 6% to 704.9 M Kgs

as compared to 2% decline recorded in the same period of last year. Indian tea prices in the
coming future too, are likely to come down on the back of rising tea output.

Tea exports likely to improve in coming future

Tea exports represent substantial portion in countrys total exports. Meanwhile, domestic export
share has declined significantly over the years to around 12% in 2012 from 48% recorded in
1950. Increasing domestic demand, which accounts for more than 80% of the total tea produce
in the country, remained main reason for declined tea exports. As per Federation of All Indian
Tea Trade Association (FAITTA), tea exports during the first half of the current financial year
dropped 15-20% as compared to the same period last year. The reasons for decline in exports
quantity were rising supply from Kenya coupled with the high prices and quality issues faced
by Indian tea. Further, Indian tea exporters have also been raising concerns over the strict 20point quality compliance set by the government, adversely affecting exports. Though, strict
compliance is in the interest of the industry as it will ensure better quality.
Tea Board of India is of the view that the country could capture a higher share in the export
markets by exporting branded tea in the coming years and has been taking various measures in
order to boost the countrys tea exports. At present, the country is bulk tea exporters and does
not export good packaged tea in value-added form. Therefore, the board is suggesting domestic
exporters to focus more on export of high-quality, high value-added teas and to come up with
specific brands aimed at foreign markets. The board has also identified five focus markets for
exports include Kazakhstan, Iran, US, Egypt and Russia. Meanwhile, Indian tea prices started
showing signs of softening on the back of rising domestic tea production. Indian tea exports is
likely to improve in coming future on the back improving domestic tea production and
initiatives taken by the Indian tea board to boost tea exports.
Indian coffee production
India is one of the major coffee producing countries and contributes about 4% towards the
world production. Coffee is cultivated in around 4.10 lakh hectares in India mainly confined to
southern states of the country including Karnataka (57%) and Kerala (21%). The country is
producer of both Arabica and Robusta varieties of coffee in the proportion of 30:70. Coffee
crop is highly sensitive to rainfall as coffee flower buds require two to four months dry periods
to form and the development of leaves and fruit coincides with the normal rainfall during rainy
season.
Despite rising coffee cultivation area in the country, domestic production has been witnessing

downward trend. Over the past three years, domestic coffee production growth has declined to
0.5% in 2012-13 from 6% average annual growth rate recorded in period 2009-2012. Declining
productivity in India is mainly due to limited mechanization, pest infestation, labour shortage
and heavy unseasonal rains. Coffee production yield level in India stood at around 838 kg per
hectare in 2012, which was much below the Vietnam yield level of around 2,190 kg per hectare
and Brazils 1,267 kg per hectare, showing countrys sluggish efforts towards R&D in
plantation sector. The Coffee Board of India has set 347 M kgs coffee production target for the
FY14. However, it seems difficult to achieve the set target as recently the board has also
estimated that the country production would be at least 10% lower than post-blossom estimates
on account of unfavorable weather conditions, which has damaged crop in major growing areas
in Karnataka. Stiff drought in April and May followed by the heavy rains in June, July and
August have caused fruit drop and incidence of black rot and stalk rot in certain high-rainfall
areas, which may affect the final coffee crop. Therefore, Indian coffee production is likely to
remain under pressure in coming future.

Tepid global demand put pressure on coffee exports

India exports over 80% of the total domestic production and accounts for around 5% of the
world coffee exports. Country wise, Italy, Russia and Germany are the top three buyers of
Indian coffee. Indian coffee exports declined by 5.34% to 299.3 M Kgs in the FY13 ended
September 30 as the demand from European Union such as Italy, Spain, Greece remained
subdued through the year. Further a sharp decline in the global coffee prices mainly Arabica
during the last fiscal also added to the decline in exports as large numbers of farmers have
withdrawn their exports contracts. In value terms, total coffee exports were down by 4.1% at Rs
3,530 crore as compared to Rs 4,725 crore in the previous coffee year. Coffee prices were down
by around 20% from a year earlier. Tepid global demand and increasing supplies particularly
from Brazil remained the main reason for declining coffee prices. The outlook for Indias
exports during 2013-14 is also not very promising as lower production will impact the countrys
exports in coming future.
At present, Indian share in global market is declining mainly due to quality issues and low
production, while the government has taken initiative to create Indian tea and coffee as a global
top quality brands, identifying specific markets like the US, Iran and Egypt in order to boost
industrys exports. On tea production front, the government has implemented Special Fund

transfer Scheme (SATP) under the support of tea board of India for funding of replantation and
rejuvenation activities which is aimed to improve the age profile of the tea plantation. The
government has started Quality Upgradation and Product Diversification scheme for providing
subsidy from 25% to 40% for modernization of tea factories. In order to enhance coffee
production of the country, the Coffee board of India has initiated Development Support Scheme
for Coffee, which is aimed to provide support to coffee growers to increase domestic
production.
Outlook
Tea and coffee industry plays an important role for the Indias economic development as the
sector has become a major contributor to countrys foreign earnings and provides employment
to over one million people in the country. The country has been witnessing a tremendous
growth in domestic consumption of tea and coffee over the past few years on the back of
favorable demographics, rising health awareness and increasing disposal income of people,
though still per capita consumption of tea and coffee is much lower than the other tea and
coffee drinking countries, therefore, domestic demand for these beverages is likely to improve
in the future.
Though there is a major concern of labour, Tea and Coffee industry is highly labour intensive
sector. The cost of production of these beverages in the country is highest as against other tea
producing countries. Presently, the domestic industry is witnessing serious shortfall of the
workers particularly due to the employment opportunities generated by the government sponsor
scheme MNREGS and the migration of the workers to urban areas for the better avenue.
Scarcity of workers has been badly impacting the timely completion of certain critical
operations of plantation, thus affecting production, productivity and quality of the tea and
coffee.

Tea and Coffee Industry likely to remain under pressure

Wednesday,December 26,2012

Tea industry in India is an area where the country can take a lot of pride mainly because of its
pre-eminence as a foreign exchange earner and its contributions to the country's GNP. India is
the second largest tea producing country in the world with a share of 23% of the total world tea
production after China and the fourth largest exporter of tea in the world. The tea industry
provides direct employment to more than a million workers, of which a sizeable number are,
women. The tea sector in the country is largely organized since 72% of the total area under tea
cultivation and 74% of the total production comes from the organized sector. Tea in India is
grown in 15 states over an area of 5,79,353 hectare which accounts for 16% of the total area
under tea cultivation in the world.
Indian coffee is the most extraordinary of beverages, offering intriguing subtlety and
stimulating intensity. India is the only country that grows all of its coffee under shade. Indias
coffee growing regions have diverse climatic conditions, which are well suited for cultivation of
different varieties of coffee such as Arabicas and Robustas. India is one of the major producing
countries and ranks seventh in the world. With only about 2% share in the global coffee area,
India contributes about 4% towards the world production and between 4.5 to 5% of global
coffee export.
Indias people give more preference to tea over coffee as 80% of the tea production is
consumed in India in comparison to the coffee where only 30% of the total production is
consumed and remaining is exported.

Government Initiatives to support the Tea and Coffee Industry

Government of India has approved the Special Fund transfer Scheme (SATP) under the support
of tea board of India for funding of replantation and rejuvenation activities which is aimed to
improve the age profile of the tea plantation.
In Quality Upgradation and Product Diversification scheme the government is providing the
subsidy from 25% to 40% for modernization of tea factories by replacement of old and worn
out machinery, procurement processing machinery for tea in CTC factories, certification and
training to small growers. Tea board of India is also providing the financial incentives through
the other schemes like Market Promotional Activities, Human Resource Development Schemes
and the Research and Development scheme.
The Coffee Board of India implements various schemes for the development and export of
Coffee which are as follows: Research & Development for Sustainable Coffee Production,
which focuses on the research and development for the sustainable coffee production, and also
to transfer of technology from lab to land.
Development Support Scheme for Coffee is aimed to provide support to coffee growers to
increase production and to improve farm productivity. Market Development scheme which
focus on the development of the domestic coffee market through market intelligence. The
Government of India has sanctioned Rs. 241.33 crores for the implementation of the Coffee
Debt Relief Package - 2010 for debt ridden small coffee growers. Coffee Board has also
initiated the other schemes like Risk Management to coffee grower and Export Promotion of
Coffee.
Tea Production
Indian tea production in Q2FY13 grew by 2.30% to 434.5Million Kgs from 424.7Millon kgs in
Q2FY12. In FY13, tea production in second quarter was much better than the first quarter,
which has recorded negative growth of 3% YOY. In tea production area of India, West Bengal
showed good growth of 3% in second quarter despite the late monsoon. Un-favorable weather
condition is affecting the tea crop globally, as the tea production of the major tea producing
countries like Sri-Lanka and Bangladesh are in declining trend. However Kenya tea production
has increased 13% in July-September period of 2012 on YOY basis due to its high investment
in research and development program.

Tea Export
Indian tea export declined by 19.63% in Q2FY13 to 51.15 Million kgs from 63.65 Million kgs
in Q2FY12. Export has been declining in 2012 due to various factors like Irans payment
settlement problem with US and EU, which is a major consumer of the Indian tea, increasing
competition and fall in the Indian tea quality due to the old age of tea bushes. Some other
factors too have affected the Indian tea export like rising tea prices and the sluggish demand
from European countries due to the economic slowdown and fast growing coffee market in
Europe. While, the margin between production and consumption on annual basis has been
decreasing, resulting in less export surplus.

Tea Auction Prices

As far as prices are concerned, Indian tea auction prices have increased in Q2FY12 as
compared to the same period of previous financial year. Continuous shortfall in production,
rising demand and low stocks at the buyer's end have been the main reasons for tea prices rise
in Q2FY13. Prices of tea are expected to go up further due to high demand of tea in coming
winter season. On global level, tea prices are also rising due to the falling tea production in
major tea producing countries due to the un-favorable weather condition.

Coffee Exports under Pressure

India is the fifth largest exporter accounting for 5% of the world market and exports about 7080% of the total domestic production. During the period of April-October of 2012 the exports
from India declined by 11.4% to 182,978 tonnes from 206,584 tonnes in the corresponding
period. However, during this period the per tonne value realization was up 12.7% to Rs 153,406
per tonne as against Rs 136,101 per tonne on YOY basis. Low demand from the Europe is the
major reason for the decline in Indians coffee export. In near future the export demand of
coffee is likely to remain sluggish due to the global economic slowdown.

Coffee Production
India's coffee production was 319.8 Million Kgs (Mkgs) for the FY12 (Oct-Sep) period, posting
growth of 6% as against the same period of FY11. According to the post blossom coffee crop
forecast for FY13 of coffee board of India, the coffee crop production is estimated to be 325
Mkgs, as favorable weather conditions last year helped in moisture retention for a longer
period, in turn helping to increase the coffee production.

Coffee Consumption
In India tea is preferred over the coffee, and the major focus of the coffee producer remains on
the export which constitutes the 70% of the total coffee production. Though, the consumption
of coffee has been rising consistently since past five years. Consistent rise in Indian coffee

consumption has been triggered by rising youth spending, paucity of alternative hang-outs,
mushrooming presence of coffee retail outlets, favorable demographics and an increasing
number of new office complexes. It is expected that the Indian coffee industry is likely to
continue similar growth trend in future. In FY12 (Oct-Sep) coffee consumption grew by 3% to
108 Million kgs from 105 Million kgs in the same period of previous year.

Issue and Concern for the Industry

Rising competition in tea export market - India is facing tough competition in the international
market with the emergence of the new growers like Vietnam, Indonesia and Kenya in the
international market resulting in oversupply of tea. Higher prices and poor quality of Indian tea
is putting pressure to sustain its position in the tea export market.
Labour Shortage Issue - Tea and coffee is highly labour intensive industry. In the current period
there has been serious shortfall of the workers in plantation area due to the employment
opportunities generated by the MNREGS and also due to the migration of the workers to urban
areas for the better avenue. This has adversely affected the timely completion of certain critical
operations of plantation which is having an impact on the production, productivity and quality
of the tea and coffee.
Old age of tea bushes - More than the 30% of the tea area are having old tea bushes which
affect the production, productivity and the quality of Indian tea.Climate Issue - Change in the
weather condition has originated as the serious issue for the tea and coffee industry. Domestic
as well as globally, the tea and coffee industry production has declined due to the unfavorable
weather condition like change in temperature and monsoon.
Higher production cost - Tea and coffee industry is facing high production cost due to the fixed
expenses like fuel, power and labour.
Outlook
Indias per capita consumption of tea and coffee is much lower than the other tea and coffee
drinking countries like Turkey, Iraq, Ireland and Sri-Lanka. This signifies the remarkable
potential of the domestic market for tea and coffee consumption. But production is finding it
difficult to keep pace with the rising consumption and if the same trend continues in the future
then it will put pressure on the prices of the tea as well as the tea export. In Indian tea industry
the declining trend in the production vis--vis rise in the consumption is likely to make the
situation worse as the global demand scenario too remains strong with low production in major
tea producing countries due to the unfavorable weather condition.

In coming days Indian tea production is expected to grow at a marginal pace, so due to the
steady growth in tea consumption will keep putting pressure on the tea prices as well as on the
export surplus in future. However, for the domestic coffee growers there is favourable report
that consumption has been increasing in secular trend and is likely to continue the same in
future.

Diffent
Branded Coffee Market in India
Traditionally, the coffee consumption in India has been largely concentrated
in the southern region which also
contributes ~90% of the total domestic production. The availability of fresh
coffee, at an affordable price, is the
major driver for the high levels of domestic consumption in southern India.
However, in the past two decades,
there has been a spread in coffee consumption to other parts of India, even if
largely in urban centers. This
penetration of coffee consumption is not restricted to the beverage alone but
also in other forms like desserts and
ice-creams.
The increase in disposable incomes, the higher number of double income
households, more global exposure, the
increasing media penetration and attention to food, the rapid urbanization
and changing lifestyle preferences,
influenced by the western world, along with a greater number of modern
retail outlets stocking a larger variety
and more variants of coffee, and new product developments by national and
international players have boosted
the consumption of coffee in other parts of India.
India is the worlds sixth largest producer of coffee, with a production of 304
thousand metric tons (MT) in 2013,

of which 125 thousand MT is the domestic consumption1 with the per capita
consumption being ~90 gm per year.
The major channels for domestic trade are modern, traditional retail, and
national and international caf chains.
The retail coffee trade is largely dominated by branded players, with Nestl
and Hindustan Unilever being the
categorys leaders accounting for approximately 60-70% of the retail market
(by value) in 2012. Other brands
include Tata Coffee and regional players like Narasus, Cothas, and Leos
which compete strongly in the
respective markets.
The Coffee Trade: Retail Market Construct
The channel which contributes most to the sales of branded, packaged coffee
is traditional retail, i.e. large and/or
small kirana stores accounting for approximately 70% of the total sales (by
value). Modern retail contributes
approximately 20-25% of total retail sales. The market for packaged coffee
constitutes different variants, shown
below.
The market for filter coffee is predominantly southern India where the
competition from local/regional player is
considerable. These players sell pre-packed or customized variants of pure
coffee or of coffee-chicory mix. This
model has been replicated by organized players like Caf Coffee Days Fresh
n Ground, to grab a share of the
existing market.
On the other hand, instant coffee is highly popular in all other regions of
India, which has propelled brands like
Nestl to innovate and produce packaged variants of exotic coffee beverages
in ready-to-drink (RTD) formats,

e.g. instant cappuccino packs.

The increasing acceptance and appreciation of coffee as a beverage, in all
parts of the country, has encouraged
the established brands in this category to launch exotic ranges to provide a
heightened experience to their
patrons. Hindustan Unilever has launched different flavors, e.g. Bru Exotica
Brazil, Bru Exotica Columbia, and
Bru Exotica Kilimanjaro as an extension of their product offerings to
capitalize on a premium range. HUL and
Nestl together have a wide range of coffee powders, varying from Nescaf
Gold (priced between INR 40004500 per kg) to Bru (Green Label, at INR 250-275 per kg) to cater to all
classes of consumers.
Additionally, the market for decaffeinated coffee is also garnering attention
and growing at a rapid rate. The
increasing awareness about health and wellness has pushed the attention of
health-conscious consumers
towards decaffeinated coffee. Nestl has launched its Gold Blend
decaffeinated coffee to tap this emerging
market.
The RTD market for coffee-based beverages is likely to grow, although it is
currently at a very nascent stage,
making up less than 1% of the total coffee market in India (by value). It is
largely serviced by instant packs
marketed by international players, e.g. Nescaf Cappuccino packs, and by
caf chains like Starbucks who are
retailing their Private Labels.

VARIANT BRANDS Price Range

Instant Coffee (Coffee
Powder)
Nescaf Sunrise, Classic, Gold
Bru Green Label, Instant, Super Strong Gold, Exotica
Illy
Lavazza
INR 250-Rs 4500
per kg
Premixes Nescaf Cappuccino, Vanilla Latte, Choco Mocha
Bru
INR 60-75 per pack
of 5
Pods Nespresso, Lavazza, Fresh n Honest INR 30 each
upwards
Beans Illy, Lavazza, Coffee Day, Starbucks, Coffee Bean n Tea
Leaf, Fresh & Honest
INR 500-Rs 5000
per kg
Ready-to-Drink (RTD) Starbucks, Nescaf Amul, Mother Dairy INR 20-275 per
bottle
Filter Coffee Kaapi INR 750-800 pe
The past two decades have introduced urban consumers to bean-to-cup
coffee thanks to the surge
in caf formats, as well as the increasing proliferation of coffee vending
machines in such institutions
as offices and commercial organizations, who now prefer unmanned
machines to service the needs
of their employees in terms of stimulating beverages like tea and coffee.
Brands like Fresh & Honest
and Caf Coffee Day are the leaders in this category. Illy, Lavazza, and Caf
Coffee Day are the
prominent players in the branded space for packaged coffee beans.
However, the domestic use of
coffee beans is limited as they require the use of such brewing equipment as
coffee
grinders/percolators which still have a low penetration in homes.

The increased acceptance of coffee can also largely be attributed to the

growing caf culture with
brands like Caf Coffee Day and Barista opening outlets across the nation,
which appeal to the young
urban population as a popular hangout place. Cafs have not only widened
the awareness of Indian
consumers vis--vis popular variants of coffee drinks e.g. cappuccino, mocha,
latte, espresso,
Americano, etc. but also introduced them to more exotic and innovative
drinks like espresso,
macchiato, affogato, etc., different kinds of frapps, and a multitude of addon flavors. The
increasing interest in the bean has led to more international coffee variants
being offered in upmarket cafs at a premium. As a result, the best coffees
worldwide, e.g. Brazilian, Ethiopian,
Columbian, Guatemalan, etc. are being served and consumed with lan.
The growth and success of these brands have in turn stimulated the appetite
of other international
players like Costa, Starbucks, and The Coffee Bean & Tea Leaf to venture into
the Indian market. The
surge in the number of cafs has strongly contributed towards making India
a coffee loving
country. However, the geographic penetration of coffee is largely limited to
the urban population in
Metros, Mini metros, Tier I and Tier II cities, excepting southern India.
Additionally, the emergence
of cafs has also elevated the urbane image of coffee. With approximately
70% of the Indian
population living in rural areas, it is imperative that players offering
packaged brands stress on

penetration into the rural market. The challenge lies in generating appeal
among the rural
consumers, who are traditionally tea drinkers, and in creating scope for a
shift in their preference.
However, with the past, and forecasted, growth in this category, the future
for packaged coffee
brands is promisingly healthy.
Authored By:
Tarun Jain (Vice President, Food

Top 10 Largest Coffee Chains

in the World
Article by ektajalan, May 2, 2014

When you are buzzed and busted by stress, all you need is the right cup. And, there is nothing
better than the hot brew coffee cup in those situations. A hot cup of coffee is also the best thing in
the weather where it is raining and the lights are dim. A coffee house is the best place to hang out
together with a bunch of friends or even with a girlfriend. The coffee has its magic because of
the coffee beans. It is the beans that give the coffee its taste and strong flavor. Coffee is known to
provide energy instantly and refresh your body and mind. No one would want to spoil the taste
by having a poorly blended coffee. To avoid such scenes, here is the list of the best coffee chains
spread all over the world to give the perfect cup of freshness.

10. Tullys Coffee:

Tullys Coffee is a Washington based coffeehouse chain. There are special coffees, espresso
drinks, baked products, pastries and other coffee related services available at Tullys. Originated
in Seattle, Washington (1992), the company started to expand slowly and has now reached
overseas to Japan and South Korea. Tom Tully OKeefe is the founder and Chairman of this
multinational company who has played a major role in expanding this company from a single
store to over 200 stores in Washington, Los Angeles, San Francisco, etc. It serves coffee,
espresso and pastries in the house and also sells whole coffee beans.

9. Peets Coffee and Tea:

Initially, when the company was founded back in 1966, it was named as Peets Coffee, Tea and
Spices by Alfred Peet (founder). The first center was located in Berkley, California. The
specialty of this brand is the dark coffee roaster. It is an Arabica coffee type which is darker and
roasted, say for example, French roast. It sells fresh roasted coffee beans as well as brewed
coffee in the coffee house. The espresso drinks available in-house really deserves high grades.
The headquarters are situated in Emeryville, California which is also the base country of this
brand. There a lot of fans of this brand who buy roasted beans to blend at home and also brewed
coffee which has an amazingly different taste.

8. Coffee Beanery:

This is another coffee chain in US which is based in Flushing, Michigan. The company has its
centers in US, US territories, Europe and Asia. Discovered in 1976, Coffee Beanery sells the
franchise of coffee shops and earns more from the equipment and product sell at the franchisees.
It has more than 130 coffee houses in US and over 25 centers located in various countries,
mostly in China, Bahrain, Cyprus, UAE, and South Korea. The franchise of Coffee Beanery
includes coffee bars, Double-wide drive-through, and obviously, coffee stores. One can have the
best taste here and the best coffee fandom. This brand was popular in less than no time and all its
franchisees started spreading like fire which has not stopped yet.

7. Tim Hortons:

Tim Hortons is a company based in Canada. This brand is very well known for the coffee they
sell, as well as the special doughnuts made here. There is a very simple menu offering only
doughnuts and coffee to its customers; but in spite of the short menu, the quality of the products
is A-class and undoubtedly one of the best. It also offers some bakery products like bagels and
Timbits at some centers. In the home country itself, the brand Tim Hortons has over 3000 (3453
centers exactly) coffeehouses. All in all, it has 4288 restaurants and centers out of which,
excluding the home nation houses, it has over 800 centers in US, and 27 in Gulf of Cooperation
Council.

6. Caribou Coffee:

This coffee company is a retailer in coffee and espresso. Other than coffee, this restaurant also
provides tea and other bakery goods. There are over 415 coffee houses owned by the company in
40 states of Columbia. As it is an international coffee chain, it has 126 franchise centers all over
the world. The Caribou Coffee is very popular and is known for the signature drink named
coolers. Apart from this, there are a number of flavors offered to the customers along with plain
coffee and espresso and all of those are truly awesome beverages. Also, the Wild Drink is
another specialty of Caribou Coffee. Recently, in 2012, the brand was acquired by a German
Multinational Company Joh. A. Benckiser for an amount worth $340 million.

5. Gloria Jeans Coffees:

This coffee brand also has its history traced back in USA. This company was founded in the year
1979 by Ed & Gloria Jean Kvetko. Without keeping any track of time, they took the company
international and presently this brand stands with more than a thousand stores all over the world,
out of which 450 stores are in Australia (because the owner is Australian) and over hundred
stores in USA. They provide their customers with the best quality espresso coffee, cold drinks,
tea, pastries, and a few coffee accessories. After a little controversy over the nutritional levels of
the products of Gloria Jeans Coffees, they now stand to provide the nutritional information
about all their products and ingredients.

4. The Coffee Bean:

The complete name of this coffee house is The Coffee Bean and Tea Leaf but is popular as just
Coffee Bean or The Coffee Bean. This is an American Coffee chain but now has centers and
stores spread all over the world. It has more than 900 outlets in 23 countries across the globe.
Most of the centers outside California are franchisees. The very unique feature of the Coffee
Bean stores is that they provide free Wi-Fi access to their customers at most places. It generates
revenue of over $450 million US dollars (records of 2012). This coffee chain was founded in
1963 by Mona and Herbert Hyman in Los Angeles but Sunny and Victor, entrepreneurs in
Singapore, bought the company in 1998.

3. Costa coffee:

Costa coffee was initially started in London by two Italian brothers named Sergio and Bruno
Costa; and it has now become a multinational coffee chain. After Starbucks coffee and Dunkin
Donuts, Costa coffee is the worlds third largest coffee house chain with over 1700 stores in
more than 28 countries across the globe. It has its headquarters situated at United Kingdom and
has 1375 centers in UK itself. The stores can be found anywhere from airports to bookstores,
Hotels, Pizza Hut branches, etc. the largest store is located in Dubai that allows a sitting of 321
people at once. They are planning to set up new centers at some universities and hospitals, where
the coffee beans used will be of the same type.

2. Dunkin Donuts:

This coffee chain of Massachusetts is not just a coffee house chain, but also a doughnut
company. This coffee chain has its origin back in 1950 in Quincy, Massachusetts. The Starbucks
is the prime competitor for the sales of coffee, whereas, for the doughnuts, Krispy Kreme is the
prime competitor. William Rosenberg is the name of the person who is responsible for such a

great chain. This coffee house has its stores and centers in more than 36 countries worldwide.
Presently, there exist approximately 10,083 stores of Dunkin Donuts out of which 3,068 stores
are internationally located, while the others are in US. Commonly, the Dunkin Donuts centers
run as Franchisees. It is also sometimes paired with Baskin-Robbins, which is because they both
are owned by the Dunkin Brands Inc.

1. Starbucks Coffee:

There are more than 13,200 centers of this coffee chain in the country where it was originated,
that is, US. Starbucks Corporation is originally an American coffee company which is now the
best global coffee house chain in the whole world. This coffee chain has 20,891 stores spread
over in 62 countries. Out of these many centers and branches, it has 1324 centers in Canada,
Japan has 989 centers, 851 centers in China, 806 centers in UK, more than 550 centers in South
Korea, more than 370 centers in Mexico, around 291 centers in Taiwan, more than 200 are
situated in Philippines, and Turkey, Thailand, and Germany has more than 170 centers each. Rest
all of them, that is, remaining 13279 centers are located in the US itself.

p Coffee Companies in India

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Coffee production in India is dominated in the hill tracts of

South Indian States in India with Tamil Nadu contributing 11%,
Kerala contributing 28% and Karnataka contributing 53% to
towards the total coffee production in India. As compared to
any other countries in the world, coffee grown in India is grown
under shade rather than direct sunlight and so the finest coffee
is produced in India.
In India coffee is grown approximately by 2,50,000 coffee
growers in India and out of these nearly 98% are small

growers, while the remaining two percentage are big

companies. Out of the coffee grown in India, 80% is used for
export purpose and out of this 70% are bound to France, Italy,
Netherlands, Greece, Japan, the United States, Solovenia,
Belgium, Spain, Russian Federation and Germany.
According to a study conducted by the International Coffee
Organization, India is the fifth largest producer of Coffee in the
world. The names of top three coffee companies in India are
given below:
Top three Coffee Comapanies in India:
Caf Coffee day
India Coffee House
Hindustan Unilever
Some of the details regarding these top three coffee brands
and their manufacturers are given below:
Caf Coffee day:
Caf Coffee Day came into existence in the year 1996 and it is
a chain of Coffee shops in India with headquarters in the state
of Karnataka. It is commonly known as CCD or Coffee Day and
it is a division of Amalgamated Bean Coffee Trading Company
Limited. At present, this company is acting as the largest caf
retail chain in India with more than 1000 cafes in 141 cities
and particularly many centres in the city of Bangalore. The
quality of coffee offered by this company attracts thousands of
companies every day. They are sourcing coffee from more than
10,500 acres of coffee estates, which is owned by its sister
concern.
India Coffee House:

This company has a chain of restaurants in India and this is run

by a series of co-operative societies in India. Their large chain
of coffee restaurants includes more than 400 coffee houses in
different parts of the country. This company has a large
number of branches in the city of Kolkata in busy places like
Jadavpur, Medical College Kolkata, Central Avenue, College
street, etc The branches of this company are acting as
favorite place of gathering for youth and students and even
old-timers visit their coffee houses frequently mainly because
the best quality coffee and the best quality service offered.
Hindustan Unilever:
Hindustan Unilever is engaged in a number of industries in
India and they have made their mark in the food industry as
well. They are offering a wide range of products pertaining to
coffee and some of them are hot Cappuccino, ice coffee and
conventional coffee. They are also leaders in the corporate
beverage vending business and their Bru and Lipton machines
are offering the best quality coffee and tea through outlets in
over 100 cities. Their Coffee Bru enjoys number one position in
a wide variety of coffee brands in India and this product has
won the hearts of several home users not only within India, but
also in foreign countries

Read more here: http://entrance-exam.net/top-coffee-companies-in-india/#ixzz3MEGrITRH

COFFEE-HISTORY The Indian contest of coffee started with an Indian Muslim saint, Baba
Budan in 1670. He smuggled seven coffee beans from Yemen to mysore in India and planted
them on the Chandragiri hills in karnataka. It spread to other areas of Mynad in kerala , Shevaroys
and Nilgiris in Tamil Nadu In 1942, indian government decided to regulate the export of coffee
under the COFFEE BOARD OF INDIA

3. COFFEE-STORY Previously only a South-Indian drink Confined to the Rich Brahmin

class Places for lawyers and educated class to hold discussion. The drink has now become more
of a concept

4. COFFEE-STORY Caf bars have flocked like CCD, Barista, etc Became famous and
even 5 star hotels started cashing on it. Coffee house started emerging at various places in the
country.

5. COFFEE SECTOR IN INDIA The 6th largest producer of the coffee in the world. Indian
coffee has created a niche for itself in the international market. Arabica coffee from India is also
well received in international market. Coffee production in India: Karnataka, Kerala and Tamilnadu.
which contributes about 99% of total coffee production

6. INDIAN COFFEE Indian coffee has a good reputation in Europe for its less acidic and
sweetness of character and thus widely used in Espresso Coffee, though Americans prefer African
and South American coffee, which is a more acidic and brighter variety.

7. COFFEE CONSUMPTION 14 Kilograms Title 12 10 8 12 10 9 8.7 8.4 8.2 7.9 6.8 6 6

4.5 4.6 4.4 4 2 0.085 0 Country

8. COFFEE CONSUMPTION Per capita consumption of coffee is just 85 grams in

compare to other countries. In the annual output of 300,000 tons, domestic consumption is only a
third(100,000 tons) India is predominantly a tea drinking nation. Coffee is a staple only in the
southern part of the country

9. GLOBAL COFFEE GIANTS EYES ON INDIA Market expansion on a faster rate

Urbanization is expanding Coffee drinking Fashion Growth in the disposable income

10. MARKETING SITUATION Niche coffee retail formal is growing at 10 to 12 percent a

year Organized coffee retail business-Rs 25 bn Coffee consumption in India has increased from
55,000 tones to 75,000 tones in the last three years 3 % of the world coffee production Export 80
% of the total produce.

11. I may be young, But please take me Seriously Youth between 15-35 years
Students form a majority of customer base Likes to be in group Likes to sit, talk and relax Drinks a
cup of Gourmet coffee with added flavours prefers snacks rather than meals

12. TOP COFFEE BRANDS IN INDIA Nescafe Tata Coffee BRU

13. COFFEE BOARD OF INDIA This is managed by the MINISTRY OF COMMERCE AND
INDUSTRY. This board was setup by an act of Parliament in 1940. The coffee board duties
include1. Promotion, sale and consumption 2. Conducting coffee research 3. Financial assistance
to small coffee growers

14. INDIAN COFFEE HOUSE The first Indian Coffee House was opened in New Delhi on
27 October 1957. They also serve dosa, sandwich, ic ecream,idly,etc at a very low price. This is
an affordable place.

15. INDIAN COFFEE HOUSE The Indian Coffee House chain expanded across the
country, with branches in Pondicherry, Lucknow, Nagpur, Ja balpur, Mumbai, Kolkata, and Pune
by the end of 1958. These coffee houses in the country are run by 13 cooperative societies, which
are governed by managing committees elected from the employees.

16. It was in the golden soil of Chikmagalur that a traditional family owned a few acres of
coffee estates, which yielded rich coffee beans. Soon Amalgamated Bean Coffee Trading
Company Limited, popularly known as Coffee Day was formed.

17. CAF COFFEE DAY Known as Amalgamated Bean Coffee Trading Company
Limited(ABCTL) Started by V. G. Siddhartha in Brigade Road, Bangalore, 1996 1497 company
owned outlets in 200 cities Largest organized retail coffee chain in India ISO -9002 certified
company.

18. PRODUCT Grows the coffee it serves in its cafes Well-equipped roasting unit The
eatables catered by different vendors -Ice creams- Cream Bell -Milk Amul -Snacks from local
vendors Sells merchandise through its stores. Enjoys trust for quality, hygiene and consistency
of food.

19. PRICE Affordable prices. Price for a cup of coffee ranges from Rs 50 to Rs 200
Only minor changes in the pricing policy due to changes in Govt. taxes.

20. PHYSICAL EVIDENCE Logo - Larger font- Emphasis on the word CAF. - Red
signifies leadership and passion. - Swirl for purity of purpose and the feel of coffee. Architecture
and dcor-uses bright colours and interiors according to the youth. Designing of pamphlets
posters and menu to attract the youth.

21. PROCESS Ordering and delivery earlier was self service and now most of the coffee
shops have waiters to take order and deliver at the table.

22. PEOPLE Emphasis on motivation and personal skills of the people. Friendly waiters
and services. Employees follow international standards of hygiene, cleanliness and personal
grooming. Reward Schemes like Employee of the month

23. PLACE Prime factor for success- Located at every possible location where business
can be generated. Caters to target market with strategically placed outlet . Eg-Located in high
street, gas station and near colleges.

24. PLACE Metros Tier-I cities ( Jaipur, Kanpur, Surat) Tier-II cities (Mysore,
Guwahati, Jamnagar) Satellite cities and urban outgrowths (NaviMumbai, Faridabad,
Secunderabad) To be expanded to Tier-III cities Tie-up with Ginger Hotels of the Taj Group

25. POSITIONING AND BRAND IMAGE Brought caf culture to India For the youth:
Young (AT HEART) customers, young and friendly staff Highest distribution network Target
middle and upper middle class Age group 15-29

26. CONSUMER PROFILE Age group: 20-24 years- 37% 25-29 years- 27% Gender:
Male- 60% Female- 40% Occupation: Students- 52% Frequency of visit: Daily- 18% Weekly44%

27. CAF FORMATS Different caf formats: - Music cafes -Books cafes -Highway cafes
-lounge cafes -Garden cafes -Cyber cafes Latest addition: Lounge cafes

28. PROMOTION Through SMS Valentines day promotion, Caf Coffee Day Luv Zone
Through Television Held a contest around a very popular program on Zee English called Friends.
They have tied up with Channel [V]s Get Gorgeous contest. Ticket sales: They were involved
in WWE, Elton John, and Bryan Adams ticket sales

29. PROMOTION Tie-ups Liril, AirtelFriends. HDFC wanted to promote their debit card
and they choose Caf Coffee Day. So 21 cafes have debit card machines. Association with
movies Bas YunHi Khakee Main HoonNaa Socha Na Tha MujhseShaadiKarogi SALES
PROMOTION SPECIAL CAF CITIZEN CARD

30. REBRANDING Earlier perceived as a place where intellectual meet Positioned itself
as a coffee bar and has maintained that position for a long time now. CCD saw a latent market in
youngsters For youngsters- CCD a fun place where one can go anytime of the day and have fun
with friends. In 2002 CCD underwent a rebranding exercise. CCD spent INR 1.5 billion to
redesign existing cafes (2009).

31. REBRANDING OLD LOGO NEW LOGO

32. DO YOU KNOW WHAT THE MAIN STRENGTH OF CCD IS? Good Coffee at
affordable price

33. WEAKNESS Many of the CCD stores are incurring loses due to wrong site selection
(national highways) Product is not able to compete with international chains like Starbucks,
Costa etc.

34. CRITIQUE ON OTHER COFFEE OPTIONS IN INDIA

35. CAF NESCAFE Caf Nescafe is a budget solution to the coffee demand. They use
standard pre-mixes manufactured by NESTLE.

36. BRU WORLD CAF Promoted by HUL Mostly present in Mumbai, as of now Most
direct competition to CCD

37. MAJOR PLAYERS IN INDIAN COFFEE INDUSTRY Caf Coffee Day Barista
Lavazza Costa Coffee Coffee Bean & Tea Leaf Starbucks Coffee Gloria Jeans Coffee Dunkin
Donuts

38. NO OF STORES 1400 1200 1000 800 600 400 200 0 Caf Coffe Day (1174) Barista
Lavazza (200) Costa Coffee Coffee Bean Starbucks Gloria Jean's (85) & Tea Leaf Coffee (20)
Coffee (7) (21)

39. I AM A COFFEE LOVER AND AN INDUSTRY OBSERVER. CAF COFFEE DAY

MANAGEMENT SHOULD HAVE SLEEPLESS NIGHTS

40. BARISTA Biggest Competition to CCD Moderately Priced Higher than CCD ( But
trust me, its worth it) It was established in 2000 but was taken over by Lavazza Barista has
outlets in India, Bangladesh, Sri Lanka and the Middle East.

41. THE DIFFERENCE BETWEEN CAF COFFEE DAY AND BARISTA CCD ambience
has become more college (or even high school) canteen-ish. The service staff are hard put to tell
the difference between capuccinos and lattes or grande and regular. Barista has remained
constant in ambience, service and menu, since its inception. The coffee - particularly the lavazza is incomparable which ever way you want to drink it. And the teas no less so.

42. COSTA COFFEE It is a UK based company and came to India in 2005

43. Very premium menu which is very European. The coffees and all other beverages
taste very nice and are very high quality

44. STARBUCKS COFFEE Most famous Coffee chain in the world with highest no. of
outlets Entered India in 2013 in a JV with Tata Global Beverages Ltd. Catering to premium
customers and prices are slightly higher than Costa Coffee The stores have got an Indian touch
in them and the menu has Indian taste items too

45. STARBUCKS OUTLET At Connaught place, New Delhi

46. COFFEE BEAN AND TEA LEAF The Best Coffee I have ever had Very Premium
High Quality Products priced at the same price as Starbucks

47. MOCHA COFFEE CHAIN 19 outlets all over India mostly in Mumbai and NCR It
stands for the coolest coffee shop in the country with its own sense of style They also serve
liquor in their cafes Earlier used to serve Sheesha too They have wider food menu Every shop
can have its own wild and intense flavour. Everything from a wall to a cup can have its own sense
of expression and identity. That diversity and variety in every outlet enriches rather than confuses.
And makes it a coffee shop people love to visit once more.

48. COFFEE CULTURE IN FIVE STAR HOTELS

49. SEA LOUNGE at HOTEL TAJ MAHAL PALACE, MUMBAI Sea lounge offers old
colonial charm with art deco furniture and live Piano music enhanced by its spectacular view of
the Arabian Sea. It is considered to be a city institution for traditional Afternoon Tea featuring an

elaborate buffet spread of classic English delicacies and Local Indian favourites complemented
with a selection of the worlds finest teas and coffees.

50. Sea Lounge is a favourite for its light lunch and dinner fare and Mumbai street food
including Bhel Puri, Sev Puri, Kheema Ghotala Toastie and Vada Pav . In the evenings, guests
may choose to opt for a quiet glass of Champagne or a cocktail as they watch the lights from the
moving ships on the harbour.

51. KAFE FONTANA at HOTEL TAJ PALACE, NEW DELHI It overlooks the pool with its
landscaped gardens, green palms, putting green and blue shimmering water, all of which can be
viewed through the lovely Venetian blinds.

52. REVENUE COMPARISON CCD stores on an average do a sale of about 30 lakhs

per annum form each of their outlets Costa is able to manage about 60 lakhs and even 1 crore
from some stores Interestingly Starbucks has done on an average of 1 lakh per day sale from
each of its outlets which is very high Coffee Bean & Tea Leaf does an annual sale of about 3.5
crores from each of its outlets

53. CONCLUSION In India A lot does happen over coffee

Report Highlights:
Indias 2014/15 coffee production is forecast at 5.1 million 60 kg bags, up
slightly from the revised
2013/14 estimate. Exports are also forecast at 5.1 million 60 kg bags, while
imports for processing and
re-export are again expected be around 1.0 million bags. Domestic
consumption is largely unchanged.
While India has seen considerable growth in the number of cafs and other
coffee outlets in recent
years, the pace of expansion appears to have slowed of late. At 60 grams,
annual per capita
consumption is quite low, especially for a coffee producing country. Until the
consumption of coffee at
home increases, Indias coffee industry is expected to continue focusing its
marketing efforts on
exports.
Growing Coffee Caf Culture in India
Hundreds of western-influenced coffee shops have emerged across Indias
major and smaller second
tier cities over the past decade. Coffee now competes against the once
dominant tea in these cafes,
especially among younger consumers. A growing willingness to consume
food and drink outside the
home and increasing disposable income has helped to fuel growth in recent
years, but the pace of
expansion appears to have slowed in recent years. A summary of some of
the major chains follows.
Barista Lavazza: The Barista Lavazza is a chain of espresso coffee bars that
operates around 160 outlets

across India. Established in 2000 under the name Barista, the Indian chain
was taken over by Italian
coffee products manufacturer Lavazza in 2008. Barista offers menu items like
espresso, lattes,
cappuccino and various pastries, in addition to basic coffee.
Caf Coffee Day: Caf Coffee Day offers nearly everything coffee-related,
from take-home products
and equipment to fully operational stores. Since the opening of the first store
in Bangalore in 1996, Caf
Coffee Day has grown to become India's largest coffee retailer and is now
exporting coffee to Europe
and the Middle East. Caf Coffee Day currently has over 1,500 outlets in 200
cities.
Costa Coffee: The British franchise has been in India since 2005 and has 100
locations.
Caf Pascucci: Italian coffee brand Caf Pascucci opened its first outlet in
Bangalore in 2013. The
master franchisee reportedly has plans to set up 60 outlets.
Di Bella Coffee India: The chain is currently operating three outlets with
reported plans to open 10
outlets in Mumbai by end of 2014.
Gloria Jeans: Gloria Jean's Coffees, an Australian-owned global specialty
coffee company in
collaboration with a Dubai-based retail group, Landmark Group, opened its
first caf in India in 2008.
The chain is currently operating 16 outlets.
The Coffee Bean & Tea Leaf: The franchise has 17 outlets across major cities.
Javagreen: Javagreen is an Indian chain of in-store cafes started by the
Reliance Group in 2003. It is

now operational across eight cities with 40 locations in India.

Mocha: Caf Mocha started in Mumbai in December 2001 and now has 20
outlets.
Brewberrys Caf: Opened in 2008 in Vadodara, Gujarat and presently has 37
stores across India.Coffee N U: The first Coffee N U outlet opened in 2008 in
Bangalore, they now have a presence in 35
locations all over India.
Dunkin Donuts: In a franchise agreement with Jubilant Food Works, the first
Dunkin Donuts opened in
May 2012 in New Delhi. The chain has 27 outlets currently in North and
Western India.
BRU World Caf: Hindustan Unilever has extended its only coffee brand BRU
to a caf chain, the BRU
World Caf. The chain currently has six outlets across Mumbai.
Cuppa Joe: Cuppa Joe is an independent caf launched by Umbrella
Hospitality in April 2012 in
Mumbai. The company is reportedly considering expanding.
Starbucks: The American coffee chain entered the Indian market in October
2012 in a joint venture with
Tata Global Beverages. Currently the chain has 40 outlets in New Delhi,
Mumbai, Pune, and Bangalore.
McCafe: McDonalds India has announced to implement its McCafe brand in
certain existing
restaurants.
Qwikys Coffee: Qwikys Coffe has 22 company-owned outlets concentrated
in southern India.
Coffee World: The chain currently has seven outlets across India.
Trade:

An estimated 80 percent of production is exported. Actual exports are

virtually equivalent to
production, but include 1.0 million bags of coffee that are imported duty free
for processing and reexport
under a special re-export program. Current marketing year (2013/14) exports
are estimated at 5
million 60 kg bags, 160,000 60 kg bags higher from a year ago. Indian
Robusta has a good reputation
among international buyers and European countries continue to be the major
buyers of Indian coffee.
Italy, Germany, and Belgium are the top export destinations for Indian
coffee. MY 2014/15 exports are
forecast at 5.1 million 60 kg bags given the industrys focus on exports, a
bigger Robusta crop, and
continued demand from European buyers.
Indian Arabica prices have risen 25 percent since start of the harvest.
Domestic prices are largely driven
by international prices and Arabica trade sources indicate that supplies have
been limited globally.
Arabica prices are expected to remain firm until the onset of the next harvest
as strong foreign demand
continues to put pressure on Indian supplies. Domestic Robusta prices have
also remained firm as the domestic crop is lower than anticipated but still
cheaper compared to international prices. Through May of 2014, Arabica
bean exports are about 30
percent ahead of the year ago pace. However, the gains have been offset by
lower than anticipated
Robusta coffee bean exports (15 percent lower). Instant coffee exports are
up 13 percent during the
same period.

The Coffee Board has revised its MY 2012/13 export data, and accordingly
FAS Mumbai has lowered
the export estimate by 415,000 60 kg bags to reflect the current estimate of
4.8 million 60 kg bags
(290,380 metric tons). Indian coffee export data is provided in the table
below and reflect the most
current trade data.
Indias coffee imports are primarily from Vietnam, Indonesia, Uganda, and
Kenya for processing and
re-export. This coffee enters India free of duty provided it is re-exported
under the provisions of a reexport
program. Tariffs on imports of coffee are 100 percent and 30 percent for
coffee derived products
(See Table 3). Given the high tariffs, virtually no coffee is imported for
consumption in the domestic
market; all imports are for processing and re-export.

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Coffee production in India

From Wikipedia, the free encyclopedia

Coffee forests in India

Coffee plantation in India

Coffee production in India is dominated in the hill tracts of South Indian states, with the state
ofKarnataka accounting 53% followed by Kerala 28% and Tamil Nadu 11% of production of
8,200 tonnes. Indian coffee is said to be the finest coffee grown in the shade rather than direct
sunlight anywhere in the world.[1] There are approximately 250,000 coffee growers in India; 98% of
them are small growers.[2] As of 2009, the production of coffee in India was only 4.5% of the total
production in the world. Almost 80% of the country's coffee production is exported. [3] Of that which is
exported, 70% is bound for Germany, Russian federation, Spain, Belgium, Slovenia, United States,
Japan, Greece, Netherlands and France, and Italy accounts for 29% of the exports. Most of the
export is shipped through the Suez Canal.[1]
Coffee is grown in three regions of India with Karnataka, Kerala and Tamil Nadu forming the
traditional coffee growing region of South India, followed by the new areas developed in the nontraditional areas of Andhra Pradesh and Orissa in the eastern coast of the country and with a third
region comprising the states of Assam, Manipur,Meghalaya, Mizoram, Tripura, Nagaland
andArunachal Pradesh of Northeastern India, popularly known as Seven Sister States of India". [4]
Indian coffee, grown mostly in southern India under monsoon rainfall conditions, is also termed as
Indian monsooned coffee". Its flavour is defined as: "The best Indian coffee reaches the flavour
characteristics of Pacific coffees, but at its worst it is simply bland and uninspiring. [5] The two well
known species of coffee grown are the Arabica and Robusta. The first variety that was introduced in
the Baba Budan Giri hill ranges of Karnataka in the 17th century[6] was marketed over the years
under the brand names of Kent and S.795.
Contents
[hide]

1 History

2 Production
o

2.1 Background

2.2 Growing conditions

2.3 Processing

3 Varieties

4 Research and development

o

4.1 Regional research stations

5 Popularity

6 Coffee Board of India

7 See also

8 References

9 External links

History[edit]

Unripe Coffee Pods in Araku Valley, Andhra Pradesh

Coffee Plantation in Araku, Andhra Pradesh

Coffee growing has a long history that is attributed first to Ethiopia and then to Arabia, mostly to
Yemen. However, the earliest history is traced to 875 AD according to the Bibliotheque Nationale in
Paris. The original source is also traced toAbyssinia from where it was brought to Arabia in the 15th
century. The Indian context started with an Indian Muslim saint, Baba Budan,[2][7] while on a
pilgrimage to Mecca, smuggled seven coffee beans (by tying it around his waist) from Yemen
toMysore in India and planted them on the Chandragiri Hills (1,829 metres (6,001 ft)), now named
after the saint as Baba Budan Giri (Giri means hill) in Chikkamagaluru district. It was considered
an illegal act to take out green coffee seed out of Arabia. As number seven is a sacrosanct number
in Islamic religion, the saints act of carrying seven coffee beans was considered a religious act.
[6]
This was the beginning of coffee industry in India, and in particular, in the then state of Mysore,
now part of the Karnataka State. This was an achievement of considerable bravery of Baba Budan
considering the fact that Arabs had exercised strict control over its export to other countries by not
permitting coffee beans to be exported in any form other than as in a roasted or boiled form to
preventgermination.[8]
Systematic cultivation soon followed Baba Budans first planting of the seeds, in 1670, mostly by
private owners and the first plantation was established in 1840 around Baba Budan Giri and its
surrounding hills in Karnataka. It spread to other areas of Wynad (now part of Kerala),
the Shevaroys and Nilgiris in Tamil Nadu. With British colonial presence taking strong roots in India
in the mid 19th century, coffee plantations flourished for export. The culture of coffee thus spread to
South India rapidly.
Initially, Arabica was popular. However, as result of serious infestation caused to this species
by coffee rust, an alternative robust species of coffee, appropriately named as robusta and another
hybrid betweenliberica and Arabica, a rust-tolerant hybrid variety of Arabica tree became popular.
This is the most common variety of coffee that is grown in the country with Karnataka alone
accounting for 70% of production of this variety.[7][8]
In 1942, the government decided to regulate the export of coffee and protect the small and marginal
farmers by passing the Coffee VII Act of 1942, under which the Coffee Board of India got
established, operated by the Ministry of Commerceand Industry.[2] The government dramatically
increased their control of coffee exports in India and pooled the coffees of its growers. In doing so,
they reduced the incentives for farmers to produce high-quality coffee, so quality became stagnant. [2]

Over the last 50 years, coffee production in India has grown by over 15 percent. [9] From 1991,
economic liberalisation took place in India, and the industry took full advantage of this and cheaper
labour costs of production.[10] In 1993, a monumental Internal Sales Quota (ISQ) made the first step
in liberalising the coffee industry by entitling coffee farmers to sell 30% of their production within
India.[2] This was further amended in 1994 when the Free Sale Quota (FSQ) permitted large and
small scale growers to sell between 70% and 100% of their coffee either domestically or
internationally.[2] A final amendment in September 1996 saw the liberalisation of coffee for all growers
in the country and a freedom to sell their produce wherever they wished. [2]

Production[edit]
Background[edit]

The main coffee producing states of India

Karnataka coffee beans

Like in Ceylon, coffee production in India declined rapidly from the 1870s and was massively
outgrown by the emerging tea industry. The devastating coffee rust affected the output of coffee to
the point that the costs of production saw coffee plantations in many parts replaced with tea
plantations.[11]However, the coffee industry was not as affected by this disease as in Ceylon, and
although overshadowed in scale by the tea industry, India was still one of the strongholds of coffee

production in the British Empire along with British Guiana. In the period 191012, the area under
coffee plantation was reported to be 203,134 acres (82,205 ha) in the southern states, and was
mostly exported to England.
In the 1940s, Indian filter coffee, a sweet milky coffee made from dark roasted coffee beans (70%
80%) and chicory (20%30%) became a commercial success. It was especially popular in the
southern states of Andhra Pradesh, Karnataka, Kerala andTamil Nadu. The most commonly used
coffee beans are Arabicaand Robusta grown in the hills
of Karnataka (Kodagu,Chikkamagaluru and Hassan), Kerala (Malabar region) andTamil
Nadu (Nilgiris District, Yercaud and Kodaikanal).
Coffee production in India grew rapidly in the 1970s, increasing from 68,948 tonnes in 197172 to
120,000 tonnes in 197980 and grew by 4.6 percent in the 1980s.[12] It grew by more than 30 percent
in the 1990s, rivalled only by Uganda in the growth of production. [13][14] By 2007, organic coffee was
grown in about 2,600 hectares (6,400 acres) with an estimated production of about 1700 tonnes.
[15]
According to the 2008 statistics published by the Food and Agricultural Organization (FAO), the
area of coffee green harvested in India was 342,000 hectares (850,000 acres), [16] with yield estimates
of 7,660 hectogram/ha,[17] forming a total production estimate of 262,000 tonnes.[18]
There are approximately 250,000 coffee growers in India; 98% of them are small growers. [2] Over 90
percent of them are small farms consisting of 10 acres (4.0 ha) or fewer. According to published
statistics for 20012002, the total area under coffee in India was 346,995 hectares (857,440 acres)
with small holdings of 175,475 accounting for 71.2%. The area under large holding of more than 100
hectares (250 acres) was 31,571 hectares (78,010 acres) (only 9.1% of all holdings) only under 167
holdings. The area under less than 2 hectares (4.9 acres) holdings was 114,546 hectares (283,050
acres) (33% of the total area) among 138,209 holders. [2]

Size of holdings

Numbers (2001
2002)

Area of holding

Less than 10 ha 10 hectares (25

acres)

175,475

247,087 hectares (610,570

acres)

Between 10 and 100 ha and

above

2833

99,908 hectares (246,880

acres)

Total

178,308

346,995 hectares (857,440

acres)

The most important areas of production are in the southern Indian states of Karnataka, Kerala,
and Tamil Nadu which accounted for over 92 percent of India's coffee production in the 20052006

growing season. In this same season, India exported over 440,000 pounds (200,000 kg) of coffee,
with over 25 percent destined for Italy. Traditionally, India has been a noted producer
of Arabica coffee but in the last decade robusta beans are growing substantially due to high yields,
which now account for over 60 percent of coffee produced in India. The domestic consumption of
coffee increased from 50,000 tonnes in 1995 to 94,400 tonnes in 2008. [19]
According to the statistics provided by the Coffee Board of India, the estimated production of
Robusta and Arabica coffee for the "Post Monsoon Estimation 200910" and "Post Blossom
Estimation 201011" in different states accounted for a total of 308,000 tonnes and 289,600 tonnes,
respectively.[20] As of 2010, between 70% and 80% of Indian grown coffee is exported overseas. [9][21]

Growing conditions[edit]
All coffees grown in India are grown in shade and commonly with two tiers of shade. Often intercropped with spices such as cardamom, cinnamon, clove, and nutmeg, the coffees gain aromatics
from the inter-cropping, storage, and handling functions.[22] Growing altitudes range between 1,000 m
(3,300 ft) to 1,500 m (4,900 ft) above sea level for Arabica (premier coffee), and 500 m (1,600 ft) to
1,000 m (3,300 ft) for Robusta (though of lower quality, it is robust to environment conditions).[2]
[15]
Ideally, bothArabica and Robusta are planted in well drained soil conditions that favour rich
organic matter that is slightly acidic (pH 6.06.5).[15] However, India's coffees tend to be moderately
acidic which can lead to either a balanced and sweet taste, or a listless and inert one. [22] Slopes
of Arabica tend to be gentle to moderate, while Robusta slopes are gentle to fairly level.[15]
Blooming and maturing

Coffee flower

Irrigated coffee plantation

Blooming is the time when coffee plants bloom with white flowers which last for about 34 days
(termed "evanescent" period) before they mature into seeds. When coffee plantations are in full
bloom it is a delightful sight to watch. The time period between blooming and maturing of the fruit
varies appreciably with the variety and the climate; for the Arabica, it is about seven months, and for
the Robusta, about nine months. The fruit is gathered by hand when it is fully ripe and red-purple in
colour.[23][24][25]
Climatic conditions
Ideal climatic conditions to grow coffee are related to temperature and rainfall; temperatures in the
range of 73 F (23 C) and 82 F (28 C) with rainfall incidence in the range of 6080 inches (1.5
2.0 m) followed by a dry spell of 23 months suit the Arabica variety. Cold temperatures closer to
freezing conditions are not suitable to grow coffee. Where the rainfall is less than 40 inches (1.0 m),
providing irrigation facilities is essential. In the tropical region of the south Indian hills, these
conditions prevail leading to coffee plantations flourishing in large numbers. [26] Relative humidity
for Arabica ranges 7080% while for Robusta it ranges 8090%.[15]

Cobras on an Indian coffee plantation

Coffee diseases
The common disease to which the coffee plants are subjected to in India is on account of fungus
growth. This fungus is called theHemileia vastatrix, an endophytous that grows within the matter of
the leaf; effective cure has not been discovered to eliminate this. The second type of disease is
known as the coffee rot, which has caused severe damages during the rainy season, particularly to
plantations in Karnataka. Pellicularia kole-rota is the name given to this rot or rust, which turns the
leaves into black colour due to the coverage by a slimy gelatinous film. This causes the coffee
leaves and the cluster of coffee berries to drop off to the ground. [7] Snakes such ascobras can also
cause a nuisance to coffee plantations in India.

Processing[edit]
Processing of coffee in India is accomplished using two methods, dry processing and wet
processing. Dry processing is the traditional method of drying in the sun which is favoured for its
flavour producing characteristics. In the wet processing method, coffee beans are fomented and
washed, which is the preferred method for improved yields. As to the wet processing, the beans are
subject to cleaning to segregate defective seeds. The beans of different varieties and sizes are then

blended to derive the best flavour. The next procedure is to roast either through roasters or individual
roasters. Then the roasted coffee is ground to appropriate sizes. [1]

Varieties[edit]

Coffee on hills of Kaveri River inKodagu District, Karnataka

The four main botanical cultivars of India's coffee include Kent, S.795, Cauvery, and Selection 9. In
the 1920s, the earliest variety of Arabica grown in India was named Kent(s)[15] after the Englishman
L.P. Kent, a planter of the Doddengudda Estate in Mysore.[27] Probably the most commonly planted
Arabica in India and Southeast Asia is S.795,[28] known for its balanced cup and subtle flavour notes
of mocca. Released during the 1940s, it is a cross between the Kents and S.288 varieties. [28]Cauvery,
commonly known as Catimor, is a derivative of a cross between Caturra with Hybrido-de-Timor,
while the award-winning Selection 9 is a derivative from the crossing between Tafarikela and
Hybrido-de-Timor.[15] The dwarf and semi-dwarf hybrids of San Ramon[disambiguation needed] and Caturra were
developed to meet the demands for high density plantings.[29] The Devamachy hybrid (C.
arabica and C. canephora) was first discovered around 1930 in India.[30]
The Indian Coffee Association's weekly auction includes such varieties as Arabica Cherry, Robusta
Cherry, Arabica Plantation, and Robusta Parchment.[31]
Regional logos and brands include: Anamalais, Araku valley, Bababudangiris, Biligiris, Brahmaputra,
Chikmagalur, Coorg, Manjarabad, Nilgiris, Pulneys, Sheveroys, Travancore, and Wayanad. There
are also several specialty brands such as Monsooned Malabar AA, Mysore Nuggets Extra Bold, and
Robusta Kaapi Royale.[15]

Workers in Kerala

Organic coffee
Organic coffee is produced without synthetic agro-chemicals and plant protection methods. A
certification is essential by the accrediting agency for such coffee to market it (popular forms are of
regular, decaffeinated, flavoured and instant coffee variety) as such since they are popular in
Europe, United States and Japan. The Indian terrain and climatic conditions provide the advantages
required for the growth of such coffee in deep and fertile forest soils under the two tier mixed shade
using cattle manure, composting and manual weeding coupled with the horticultural operations
practised in its various coffee plantations; small holdings is another advantage for such a variety of
coffee. In spite of all these advantages, the certified organic coffee holdings in India, as of 2008,
(there are 20 accredited certification agencies in India) was only in an area of 2,600 hectares (6,400
acres) with production estimated at 1700 tonnes. In order to promote growth of such coffee, the
Coffee Board, based on field experiments, surveys and case studies has evolved many packages for
adoption, supplemented with information guidelines and technical documents. [4]

Research and development[edit]

Coffee research and development efforts are well organised in India through its Coffee Research
Institute, which is considered the premier research station in South East Asia. It is under the control
of the Coffee Board of India, an autonomous body, under the Ministry of Commerce and
Industry,Government of India, which was set up under an Act of the Parliament with the objective of
promoting research, development, extension, quality up gradation, market information, and the
domestic and external promotion of Indian coffee. [32] It was established
near Balehonnur in Chikmagalur district of Karnataka, in the heartland of coffee plantations. Prior to
establishing this institute, a temporary research unit was established in 1915 at Koppa primarily to
evolve solutions to crop infestation by leaf diseases. This was followed by the field research station
established by the then Government of Mysore, titled "Mysore Coffee Experimental Station," in 1925.
This was handed over to the Coffee Board which was formed in 1942, and regular research started
at this station from 1944. Dr L. C. Coleman is credited as the founder of coffee research in India.
[33]
The Coffee Board of India is an autonomous body, functioning under the Ministry of Commerce
and Industry, Government of India. The Board serves as a friend, philosopher and guide of the
coffee industry in India. Set up under an Act of the Parliament of India in the year 1942, the Board
focuses on research, development, extension, quality up gradation, market information, and the
domestic and external promotion of Indian coffee.

Chikmagalur district, the headquarters of the Coffee Board of India, shown within the state of Karnataka

The research activities covered by the Institute constitute research in seven disciplines such
as Agronomy, Soil Science andAgricultural Chemistry, Botany, Entomology/Nematology, Plant
Physiology, Biotechnology and Post Harvest Technology with the basic aim of increasing productivity
and quality of coffee grown in India. The institute has 60 scientific and technical personnel involved
in research activities. The institute has a well established farm land of 130.94 hectares (323.6 acres)
for carrying out crop research, out of which 80.26 hectares (198.3 acres) are dedicated to coffee
research (51.32 hectares (126.8 acres) of arabica and 28.94 hectares (71.5 acres) of robusta), 10
hectares (25 acres) are used for growing CXR, 12.38 hectares (30.6 acres) are apportioned for
nurseries, roads and buildings, and the balance area of 12.38 hectares (30.6 acres) is a reserve
area for future expansion. The research farm has a well established network of check dams that
provides a regulated water source to the plantations which offer a wide range of shade tree species
under which coffee is grown, andgermplasm and exotic material from all the coffee growing countries
including Ethiopia which is known as the home land of Arabica. In addition, crop diversification with
crops such as pepper and areca are also part of income generating programmes of the institute. [33]
Part of the institute includes a research laboratory to carry out research in identified disciplines, as
well as a stocked library with books and periodicals, not only on coffee but also on other crops.
Training of personnel is an important activity of the institute. The training unit of the institute conducts
regular training programs for estate managers and supervisory personnel of the coffee plantations
and also for the extension officers of the Coffee Board. Recognised by UNDP and USDA, the
training unit of the institute is providing training to foreign nationals on coffee cultivation in which
personnel from Ethiopia, Vietnam, Sri Lanka, Nepal, and Nestle Singapore have been trained.[33]
In addition, a Plant Tissue Culture & Biotechnology division, established in Mysore, is carrying out
exclusive research in bio-technology and molecular biology to supplement/complement the
conventional breeding programs in developing high yielding, pest and disease resistant varieties.
The Coffee Board of India maintains a Quality Control Division in its head office in Bengaluru which

plays an active role in collaborating with other research disciplines in upgrading the quality of coffee
in the cup.[33]

Regional research stations[edit]

To cover research specific to each coffee growing region covering different agro-climatic conditions,
the following five research stations are fully functional under the overall control of the Central Coffee
Research Institute.[33][34]

Coffee Research Sub-station (CRSS), Chettalli in Kodagu district of Karnataka, was

established in 1946. The sub-station has a well equipped laboratory and covers an area of 131
hectares (320 acres) out of which 80 hectares (200 acres) is exclusive to coffee research
activities.[34]

Regional Coffee Research Station (RCRS), R.V. Nagar in Visakhapatnam district of Andhra
Pradesh also covers the Orissa on the eastern coast. The research station, established in 1976
to cater to the development of coffee in non-traditional areas has an area of 30 hectares (74
acres) under coffee plantation. The objective of introducing coffee in this area was to wean away
the tribal population from growing crops under the 'Podu' cultivation (shifting cultivation) in the
forest areas, not only to preserve the forest ecology but also to improve the economic condition
of the tribal people of the region.[34]

Regional Coffee Research Station (RCRS), Chundale village in Wayanad district of Kerala
was established primarily to develop appropriate technologies to suit the region where robusta is
the dominant crop. Kerala is reckoned as the second largest coffee producing state in the
country with robusta variety of coffee. The station covers an area of 116 hectares (290 acres)
with 30 hectares (74 acres) of farm with an adequate laboratory support for research. [34]

Regional Coffee Research Station (RCRS), Thandigudi in Dindigul district of Tamil Nadu. The
research station was established with the sole aim of evolving suitable practices for the
cultivation of coffee area in Tamil Nadu which receives major rainfall (but scanty) during
the Northeast monsoon, unlike the other regions of the country. This station is spread over an
area of 12.5 hectares (31 acres) including a research farm of 6.5 hectares (16 acres) with
laboratory facilities.[34]

Regional Coffee Research Station (RCRS), Diphu in Karbi Anglon district of Assam was
established to support coffee plantations which were established in the Northeast region in 1980
to provide an alternate, economically viable agricultural practice to the shifting or jhum
cultivation, widely practised by the tribals in the forested hills, which was a cause of concern to
preserve the ecology of the region. This regional station is spread over an area of 25 hectares
(62 acres).[34]

Popularity[edit]

Coffee latte

The India Coffee House chain was first started by the Coffee Board in early 1940s, during British
rule. In the mid-1950s, the Board closed down the Coffee Houses, due to a policy change. However,
the discharged employees then took over the branches, under the leadership of the then communist
leader A. K. Gopalan and renamed the network as Indian Coffee House. The first Indian Coffee
Workers Co-Operative Society was established in Bengaluru on 19 August 1957. The first Indian
Coffee House was opened in New Delhi on 27 October 1957. Gradually, the Indian Coffee House
chain expanded across the country, with branches
in Pondicherry, Thrissur, Lucknow, Nagpur, Jabalpur, Mumbai, Kolkata,Tellicherry and Pune Tamil
Nadu by the end of 1958. These coffee houses in the country are run by 13 cooperative societies,
which are governed by managing committees elected from the employees. A federation of the cooperative societies is the national umbrella organisation to lead these societies. [35][36]
However, now Coffee bars have gained in popularity with other chains such as Barista; Caf Coffee
Dayis the country's largest coffee bar chain.[37] In the Indian home, coffee consumption is greater in
south India than elsewhere.[38]
Indian coffee has a good reputation in Europe for its less acidic and sweetness of character and thus
widely used in Espresso Coffee, though Americans prefer African and South American coffee, which
is a more acidic and brighter variety.[6]
Selection 9 was the winner of the Fine Cup Award for best Arabica at the 2002 Flavour of India
Cupping Competition.[15] In 2004, Indian Coffee with the brand name "Tata Coffee" had the distinction
of winning three gold medals at the Grand Cus De Caf Competition held in Paris. [6]

Coffee Board of India[edit]

The Coffee Board of India is an organisation managed by the Ministry of Commerce and Industry of
thegovernment of India to promote coffee production in India. The board was set up by an act of
parliament in 1942. Until 1995 the Coffee Board marketed the coffee of many growers from a pooled
supply, but after that time coffee marketing became a private-sector activity due to the economic
liberalisation in India.[39]

The Coffee Board's traditional duties include the promotion, sale and consumption of coffee in India
and abroad; conducting coffee research; financial assistance to establish small coffee growers;
safeguarding working conditions for labourers, and managing the surplus pool of unsold coffee. [40]

See also[edit]
Coffee portal

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Jump up^ "Coffee Board of India About Us".indiacoffee.org. 2011. Retrieved 22

October2011.

40.

Jump up^ John, K. C.; Kevin, S (2004). Traditional Exports of India: Performance and
Prospects. Delhi: New Century Publications. p. 117.ISBN 81-7708-062-8.

External links[edit]

Coffee Board of India

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Coffee

Categories:

Coffee production by country

Agricultural production in India by commodity

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