When India takes its cue from Malaysia, coffee trade policies can be changed
By By Kunal Goyal ByKunal Giryalagopal,ReutersIn its most ambitious coffee export plan yet, India is setting out to take a cue from its neighbour Malaysia by implementing coffee trade policy and ensuring a stable market for domestic and foreign coffee producers.
The plan calls for setting up coffee markets in India by 2020, setting up the country’s first coffee market and setting up a coffee trade committee that would coordinate between the government, coffee producers and local farmers.
The move has been hailed as a major development, and India will be able to diversify its supply chains to provide the domestic market with a more sustainable and high quality product.
The plan also includes setting up an electronic trading platform to facilitate the exchange of coffee and tea.
In addition to setting up markets, the government will also encourage farmers to sell their coffee on the local market, where prices are determined by market conditions.
The scheme will also provide incentives for local coffee producers to grow coffee.
Malaysia, which has been leading the international coffee trade for the past two decades, is one of the most expensive markets in the world.
According to Bloomberg data, India has been buying coffee at a rate of over 1.5 million metric tonnes annually.
The cost of buying coffee in Malaysia is about $2.1 billion.
According to Reuters, Malaysia has the fourth-highest number of coffee-producing countries in the Asia-Pacific region after Vietnam, Indonesia and Myanmar.
India, however, is a relatively small market, with only 1.3 million coffee-growing hectares, and only a third of the coffee production in Malaysia comes from India.
While coffee is one area where India and Malaysia have common interests, the two countries have been fighting over the global coffee trade since 2010.
The countries signed a trade pact in 2013, but the agreement was only implemented after two years.
The deal did not include measures to tackle the supply chain issues.
According in the plan, the Indian government will ensure the sustainable and effective growth of the domestic coffee market through policies that are geared towards ensuring an adequate supply of coffee for domestic consumption, as well as an appropriate and competitive market for the export of domestic coffee to the international market.
