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TEA-COFFEE
March 2012
TEA-COFFEE
In coffee season (October to September) of 2010-11, India produced 3.02 lakh tonnes of coffee, most of which was grown in southern states of Karnataka (71%), Kerala (22%), and Tamil Nadu (6%). Arabica production amounted to 31% of total output, the remaining 69% being contributed by Robusta production. Coffee is cultivated on nearly 4.05 lakh hectares in India, and 70% of output is grown on small farms owning area of less than 10 hectares. The domestic coffee consumption has been continuously growing at annual average rate of 6% and is largely on account of mushrooming presence of coffee retail outlets. With the domestic coffee outlets set to increase multi-fold by with next 3 years, in addition to foray of global players such Starbucks and Dunkin Donuts in India, the coffee industry is likely to continue witnessing similar growth trend in future. Though, the Indian tea-coffee industry is expected to post sound growth on account of growing domestic demand, key pressing issues of labour shortage and migration, and tremendous increase in cost of labour are major concern areas for the industry, which are to be critically addressed in order to avoid their extremely adverse impact on the future progress of this sector. For an in-depth analysis and CARE Researchs view on the future of this sector, please refer to the exhaustive report on Indian Tea-Coffee Industry, March 2012 by CARE Research. You can contact us at careresearch@careratings.com
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