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Transaction costs in Exports - Coffee

Transaction costs in Exports - Coffee. Coffee Board of India Bangalore. Coffee Production and Export. Production: About 3.2 lakh tonnes of coffee Grows both Arabica (32%) and Robusta (68%) Exports: About 75% of Country’s production About 5% share in Global exports

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Transaction costs in Exports - Coffee

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  1. Transaction costs in Exports - Coffee Coffee Board of India Bangalore

  2. Coffee Production and Export • Production: About 3.2 lakhtonnes of coffee • Grows both Arabica (32%) and Robusta (68%) • Exports: • About 75% of Country’s production • About 5% share in Global exports • India positioned 5th in Global coffee exports (moved from 6th to 5th) • Exports include export of Indian coffees and re-exports • India is a major producer and exporter of soluble coffee • Exports to more than 100 destinations • Main Markets – Italy, Russia, Germany, Belgium and Spain

  3. Coffee Exports * Provisional based on permits issued

  4. Coffee Imports

  5. Shipment of Coffee by Ports

  6. To examine the coffee value chain and to evolve a facilitating structure to aid the inbound logistics and documentation system, to ease the procedural obstacles,Coffee Board took up a study on ‘Transaction Costs of Indian Coffee Exports’ through IIPM, Bangalore during 2011-12.

  7. Detailed Logistics and Documentation Costs - portwise (Rs/container/Certificate)

  8. CERTICATES/PERMITS INSTITUTIONS / AGENCIES Coffee Board Permit ICO Coffee Board of India - Bangalore Quality and Weight Chamber of Commerce and Industry (regional) Country of Origin Directorate of Plant Protection, Quarantine and Storage, Ministry of Agriculture – State Government PQ/SPS Fumigation Government Approved Agencies (eg., International Pest Control) Radioactive Bhabha Atomic Research Centre State Government [State Laboratory for Livestock, Marine and Agriculture Health GSP Export Inspection Agency (MoCI) Microbiological Various Approved Laboratories Mandatory Specific Requirements

  9. Major issues • Permits & Certificates • Reducing costs by sharing common facilities • Coffee Board Permit may be made printable online • CB Permit may be integrated with SPS Certificate and EIA • Customs and Ports • Simplification of order fulfillment procedure by reducing the time taken for customs verification and clearance, especially at Mangalore and Chennai. • Proper handling and warehousing facilities at the port are imperative (Mangalore), especially for loose coffee, to be packed in 1 tonne bags • Logistics and Infrastructure • Improvement of transportation – 40 feet containers – important from the long term point of view of cost competitiveness • A shift-wise working system may be developed for customs and excise officials

  10. Vietnam as a low cost producer and supplier • How and Why ?

  11. Lessons to be drawn and Recommendations for Indian coffee • Developing a paperless trade system • Electronic integration of permits and certification process • Co-ordination among various depts/ agencies - ICB – PQ – EIA authorities • Facilitation of exports through Mangalore Port • Growers collectives for cost reduction

  12. Recommendations Long term • Hard infrastructure and cost effective transportation requires high priority – incentives • Studies on outbound logistics in the context of major markets • Quality enhancing drives on a continuous basis • Cost competitiveness of Vietnam – lessons from international benchmarks – collectives

  13. THANK YOU 14

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