'Higher growth will create more potential for coffee industry'

With the Indian economy poised to grow by over 8 per cent in the next few years, there is opportunity for the coffee industry to increase its footprints in the domestic market, the Planning Commission Deputy Chairman, Mr Montek Singh Ahluwalia, has said.

Addressing the India International Coffee Festival here today, he said that the rising income level of the Indian people will ensure 500 million citizens in 20 years who will have enough disposable income to spend on products like coffee.

“The economy is poised to grow at 8 per cent plus annually over next few years ... somewhere between 7 to 9 per cent. Our aim is to double the per capita income every nine years and this will result in four-fold jump in less than 20 years.

“This will mean 500 million people will have income level where they can spend on things besides basic necessities. So there is scope for the coffee industry,” he said.

He called upon the coffee industry to look beyond the traditional markets in the southern states and also develop new flavours and tastes to cater to local markets.

“With the country’s huge population there is a lot of possibility in downstream value-addition like brand identification and developing regional variations. With the kind of economic growth we hope to have in next few years, this will create a lot of untapped potential for coffee in the country,” Mr Ahluwalia said.

The Plan panel deputy chief also stressed upon development of an entrepreneurial spirit in the Indian coffee market.

“There is scope for expansion of entrepreneurship. Why not have coffee outlets at retail level compete with one another,” he said.

Mr Ahluwalia also asked for feedback from the coffee market players while framing the 12th Five-Year Plan (2012-17).

Coffee production in India is expected to rise by about 7 per cent to 5.4 million bags (about 3,24,00 tonnes) in 2011-12 coffee year, according to a recent report by the International Coffee Organisation (ICO).

In the 2010-11 fiscal, overseas shipments of the coffee rose 50 per cent to 2.94 lakh tonnes compared with 1.96 lakh tonnes in the 2009-10 financial year.