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Saturday, January 9, 2010

TAKE A STEP FORWARD. START A COFFEE PROCESSING UNIT.


The coffee industry of India is the 6th largest producer of coffee in the world, accounting for over 4% of world coffee production, with the bulk of all production taking place in its Southern states. India is most noted for its Monsoon variety. It is believed that coffee has been cultivated in India longer than anywhere outside of the Arabian Peninsula.
There are over 170,000 coffee farms in India, cultivating nearly 900,000 acres of coffee trees. Most coffee production in India is on small farms, with over 90% of all farms consisting of 10 acres or fewer. However, such farms account for just over half of all land used for coffee production and a minority of all coffee produced. Most coffee in India is grown in three states: Karnataka, Kerala, and Tamilnadu. These states accounted for over 92% of India's coffee production.

Demand for coffee in the country has been growing very fast. Traditionally only South Indian States were considered as the market for coffee. But in recent years, coffee has acquired a national presence & demand for coffee is growing much faster in the non-south regions. Between 2003 & 208 the coffee consumption is growing @ 45% annually while it has grown by 20.4% in the southern states. There are exciting business opportunities for coffee processing units especially in non-southern states.

Coffee Board provides 25% subsidy with a ceiling of 25lakhs per unit to individuals & firms & 40% subsidy with a ceiling of 40lakhs per unit to the self help groups & grower’s collectives or co-operatives on the total cost of the equipment.

Existing units can also avail this benefit for addition of any of the components.

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