Financial Incentives: How the Coffee Board Supports Exporters
The Coffee Board of India, established in 1942, plays a pivotal role in promoting the nation’s coffee industry. Operating under the Ministry of Commerce and Industry, it offers various financial assistance programs to bolster exporters’ global competitiveness. These initiatives encompass export incentives, quality enhancement support, and logistical assistance, all aimed at strengthening India’s position in the international coffee market.
Export Incentives
To encourage the export of value-added coffee products, the Coffee Board provides financial incentives to exporters. For instance, exporters of roasted coffee beans, roasted and ground coffee, and instant/soluble coffee are eligible for incentives of ₹2 per kilogram. This incentive is granted when exporters utilize the ‘Coffees of India’ logo on retail consumer packs, promoting Indian coffee brands globally. The incentive is calculated based on the quantity of green bean equivalent used in production, with a maximum conversion factor of 1:2.6 for instant coffee and 1:1.9 for roasted coffees.
Additionally, the Coffee Board offers incentives for exporting high-value green coffees to distant markets such as the USA, Canada, and Japan. Exporters can receive ₹1 per kilogram for these premium coffees, which include organic and estate-branded varieties. This initiative aims to penetrate far-off markets and establish a strong presence for Indian coffee.
Quality Upgradation Support
Recognizing the importance of quality in gaining a competitive edge, the Coffee Board provides financial assistance for quality upgradation activities. Growers are encouraged to install pulping units, construct drying yards, and build storage godowns. Subsidies are available for procuring pulpers, washers, motive power machinery, and for undertaking necessary civil works like constructing pulper sheds and fermentation tanks. The total subsidy for these activities is capped at 20% of the prescribed unit cost for the respective holding size or ₹1.5 lakh, whichever is lower.
Logistical Support
Efficient logistics are crucial for timely delivery and cost management in exports. The Coffee Board offers transit and freight assistance to exporters to mitigate transportation costs. This support ensures that Indian coffee remains competitively priced in international markets, enhancing its appeal to global buyers.
Registration and Market Access
To streamline the export process, the Coffee Board facilitates the registration of exporters. By registering, exporters become members of the Registered Exporter of Coffee, gaining access to various benefits and support services. This registration is a prerequisite for availing of the Board’s financial assistance programs and ensures compliance with export regulations.
Altus Exports: Partnering with Indian Manufacturers
While the Coffee Board provides substantial support to coffee exporters, navigating the complexities of international trade can still be challenging. This is where Altus Exports steps in to assist Indian manufacturers in expanding their global reach.
Altus Exports is committed to forming strategic alliances with manufacturers who share a dedication to quality and a vision for global expansion. Ideal partners are those producing export-quality products, aspiring to establish a global footprint, and possessing the necessary documentation and certifications for international trade.
Our Partnership Model
At Altus Exports, we act as an extension of your business, serving as your dedicated export team. Our services include:
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Expertise in Finding Buyers: We identify potential buyers for your products across various international markets, leveraging our understanding of market trends and buyer behavior.
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Access to Comprehensive Databases: Our subscriptions to numerous databases provide up-to-date market intelligence, helping us identify new opportunities and stay ahead of the competition.
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Skilled Marketing Team: Our experienced marketing team promotes products in the international market using a blend of traditional and digital marketing techniques to generate leads and convert them into orders.
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Extensive Network: Over the years, we have built a vast network of contacts and partners across various industries and regions, facilitating smoother market entry and quicker establishment of your products in new territories.
By partnering with Altus Exports, Indian manufacturers can navigate the complexities of international trade more effectively, ensuring their products reach global markets efficiently and successfully. To explore partnership opportunities, visit our Manufacturer Partnership page.