Coffee farmers, traders to continue existing prices
REPUBLICA
KATHMANDU, Oct 31: Coffee farmers and traders have agreed to continue existing minimum support price of Nepali coffee on the back of ongoing financial crisis and constant cost of production.
The meeting held in the presence of representatives of Ministry of Agriculture and Cooperatives (MoAC) and Nepal Tea and Coffee Development Board (NTCDB) held on Friday took the decision to this effect.
Binaya Mishra, executive director of NTCDB, said the price of fresh cherry and parched coffee has been fixed at Rs 27 and Rs 142 per kg respectively. Similarly dry cherry of category A, B and C have been priced at Rs 80, Rs 55 and Rs 20 per kg respectively.
“Farmers won´t suffer loss even with the continuation of existing prices,” Mishra told myrepublica.com on Saturday.
During the meeting, traders stressed on the need to lower coffee prices, keeping in view the ongoing global economic slowdown that has been affecting the demand of coffee in international market. On the other hand, farmers demanded that the price be raised, considering the skyrocketing price of essential commodities in the market.
“We decided to continue with the existing prices of coffee so as to prevent the negative impact in the demand in international market due to price rise,” said Shyam Prasad Bhandari, president, Coffee Producers´ Association (CPA).
The NTCDB has forwarded the decision to the MoAC for approval.
Expressing concerns over the rising tendency of selling imported coffee in the name of Nepali coffee in international market, both traders and farmers asked the government to initiate strong measure to discourage such illegal practice to boost the image of Nepali coffee and its export to overseas market.
Currently, more than 65 percent of total coffee produced in the country is exported to overseas market mainly the USA, Holland, Belgium, Japan and South Korea.
Arabica variety of filter coffee is popular among Nepali farmers.
Farmers in over a dozen districts, including Gulmi, Palpa, Syangja, Arghakhanchi and Lalitpur, are involved in commercial coffee farming. In fiscal year 2007/08, Nepal exported coffee worth Rs 950 million to overseas market. The export was mere Rs 360 million a year earlier. Annual domestic production of coffee hovers around 265 tons.
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Coffee Farmers, Traders To Continue Existing Prices
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