Coffee prices slashed

By Our Special Correspondent

COIMBATORE, AUG. 18. The price of pure and blended coffee powder is to be slashed by Rs. 10 per kg to Rs. 120 from Monday all over the State.

Coffee prices have already been revised downwards thrice, each time by Rs. 10. According to industry sources, during the corresponding period last year, it was quoted at Rs. 160 per kg. Towards of the end of the last year, it was revised to Rs. 150.

Once again, during the first fortnight of this year, it was slashed to Rs. 140. Around March it came down to Rs. 130 and now it is Rs. 120.

The present decision resulted from the steep fall in international prices. The New York market has been taken as the yardstick now. The prices are now ruling at 48 cents there.

The sources said they were confident that even if it were to go upto 60 cents ``we can maintain at Rs. 130.''

Of the total production of three lakh tonnes, India exports 2.3 lakh tonnes on an average every year. Tamil Nadu accounted for more than 65 per cent of the domestic consumption.

The sources said the `arabica' and `robusta' varieties had now been suffering such a ``beating down of prices'' in the international market not seen in the past 10 and 30 years respectively.

The irony of the domestic market was that the prices continued to decline despite ``coffee berry borer,'' a dreaded pest, hitting coffee cultivation.

The Coffee Board had warned of the pest spreading in coffee- cultivation areas of not only Karnataka and Kerala but also of Tamil Nadu.

It had pointed out that some growers had not harvested the robusta plants due to low price and some had not collected the gleanings as well. ``This would only allow the pest menace to spread.''

Sources said it would be too early to say anything regarding the affected areas and the impact on the yield.

They regretted that the State Government had not reduced the sales tax to four per cent from eight per cent on a par with the coffee producing States of Karnataka and Kerala.

However, the industry would welcome the VAT which was expected to be in place next year.

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Section  : Business
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