BANGALORE: Though domestic consumption of coffee has increased in the recent years, efforts should be made to enhance consumption of coffee in India on the lines of Brazil.

Speaking to presspersons on the sidelines of India International Coffee Festival here on Saturday, Nestor Osorio, Executive Director, International Coffee Organisation, said sustained efforts by the stakeholders of the coffee industry had enabled Brazil to double its domestic consumption during the last 10 years.

Increased consumption

"India has witnessed increased coffee consumption during the last seven years. But the present situation in India is conducive to increasing purchasing capacity of the population.

"Education, public relations exercise, dissemination of information to consumers and the joint efforts of private sector with the Coffee Board would help increase the domestic consumption," Dr. Osorio said.

He added that increased domestic consumption would give better margins and profitability besides generating employment.

Coffee Board sources put India's consumption at around 70,000 tonnes of coffee while around two lakh tonnes was being exported. Efforts were being made to increase the domestic consumption by at least 50 per cent.

On the export market, India could tap the potential markets in Central Europe and Russia that have shown increasing demand.

Prices

Commenting on coffee prices in the international market, Dr. Osorio said prices might increase due to an estimated shortfall of around nine million bags in Brazil, the world's largest coffee producer.

At present, the world was consuming around 118 million bags annually, with production expected plunge to 110 million bags during 2007-08.

Prices may go up in the next two years owing to the shortfall.

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