govt. intruducing coffee promotion

Coffee (Promotion and Development) Bill,2022 – Judiciary Exam – Free PDF Download

COFFEE PROMOTION BILL

  • Recently, the government is going to introduce a coffee promotion bill to modernize the functioning of the Coffee Board, promote exports, and support the development of the domestic market.

Coffee Act, 1942

  • The Coffee Act, 1942 was first introduced during World War II, in order to protect the struggling Indian coffee industry from the economic downturn caused by the war.
  • Purpose: To provide for the development of the coffee industry.
  • Since the Cess Committee (formed in 1935) was not able to deal with the crisis faced by the industry, the government formed the Coffee Board.
  • The Board was tasked with supporting the industry in marketing, promotion of consumption, finance and research and development.
  • Ministry of Commerce and Industry is planning to replace the 80-year-old Coffee Act with the new Coffee (Promotion and Development Bill), 2022.

Reasons for Scrapping the Law

  • Redundant and Restrictive:  the substantive portion of the Coffee Act, 1942, which deals with pooling and marketing of the commodity, have become redundant and are impediments to the coffee trade.
  • Hindering Growth: Some of these outdated regulations have stifled the sector’s growth, especially in marketing.
  • Need for Simplification: In order to facilitate growth and ease of doing business, the government would introduce a simplified version of the Act to suit the present needs of the industry.

What is Present status of Coffee Production in India?

India is among the top 10 coffee-producing countries, with about 3% of the global output in 2020.

  • Coffee is largely produced in the southern part of India.
    • Karnataka is the largest producer accounting for about 70% of the total coffee production in India.
    • Coffee is mainly produced in Karnataka, Kerala, Tamil Nadu, Andhra Pradesh and Odisha.
  • According to The Food and Agriculture Organization (FAO) statistics, India is the eighth largest exporter of coffee by volume.


Key Provisions of draft Coffee (Promotion and Development) Bill, 2022

The new Bill aims to address several new areas of functions of the Coffee Board.

  • These include support for production, research, extension, quality improvement and the promotion of coffee and skill development of coffee growers.
    • Many of these activities were originally not included in the mandate of the Coffee Board but now they need to be incorporated into its functions and powers.
  • The Bill is also aimed at “holistic promotion and development” of the coffee industry.

Significance

  • The new legislation is primarily concerned with promoting the sale and consumption of Indian coffee, including through e-commerce platforms, with fewer government restrictions.
  • It will not just create more employment opportunities but also benefit the entire coffee value chain.
  • It also aims at encouraging further economic, scientific and technical research in order to align the Indian coffee industry with “global best practices.”

What is the Coffee Board of India?

  • The Coffee Board is a statutory organization constituted under Section (4) of the Coffee Act, 1942 and functions under the administrative control of the Ministry of Commerce and Industry, Government of India. The Board comprises 33 Members including the Chairperson.
  • The Board is mainly focusing its activities in the areas of research, extension, development, market intelligence, external & internal promotion, and welfare measures.
  • It is headquartered in Bengaluru.
  • The Board has a Central Coffee Research Institute at Balehonnur (Karnataka).

 

 

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