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8/8/2019 Presentation of Coffee 2.
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GROUP MEMBERS
YEAR 2008-09
T.Y.BCOM
(BANKING &INSURANCE)
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Coffee marketing
IntroductionInternational coffeeorganization
India's pre-liberalizationmarketing chainIndia's after liberalization chainMedium term export strategyfor coffeeFuture strategies for newmarket
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Financial assistance in exporting
coffee
INTRODUCTION
EXPORT FINANCE IN INDIA
PRE-SHIPMENT FINANCE
POST-SHIPMENT FINANCE
COFFEE SCHEME:
SUPPORT TO SMALL
GROWER SECTOR SCHEME
INTEREST SUBSIDY
SCHEME FOR LARGE AND
SMALL GROWERS
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INTRODUCTION
Coffee is a major export
commodity
in developing countries.
Before
liberalization heavy
taxation also
made coffee an important
source of
revenue. The government totake over
Marketing because of the
difficulties
faced by the marketers.
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ICO(INTERNATIONAL
COFFEEORGANIZATION)
The ICO had profound
impact on the
World coffee
market.coffee producingcountries & coffee
importing members of
OECD were members
were
of ICO .
Government of all major
coffee producing
companies had wanted to
take some joint market-
controlling measures doingso would have been
difficult and costly, given
that begun liberalizing
their coffee sub sector.
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Producers
Coffee Board
Domestic market
(30%)
Export
(70%)
Pre- liberalization marketing chain
Before liberalization, the producers of coffee were selling
their coffee production to Coffee Board at fixed price. On
the basis of curing works like cleaning, sorting and
grading, Coffee Board decide to market this goods in
market in proportion of 30 % to Domestic Market and 70
% for Exportation.
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Producers
Exporters
Domestic market Export
After liberalization, producer started to sell their product
in domestic and international (export) market on auctionbasis and role of coffee board was shifted from marketing to
research,extention & promotion.
POST-LIBERALIZATION MARKETING CHAIN
Thus producers were satisfied after liberalization of
marketing chain because that made Export to customers
directly, avoiding implicit taxes (sales tax).
AUCTION
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MEDIUM TERM EXPORT STRATEGY FOR COFFEE
Cost reduction to improve competitiveness.Improving quality perception of Indian
coffee.
Integrating Indian coffee with the global
coffee trade.
Guarantee reliability of exporters.Carryout a major communication initiative in
key overseas markets to enhance the image of
Indian coffee as well as to improve market
share.
Participation in important overseas trade fairs
involving exporters and grower exporters.
Organizing buyer-seller meets between Indian
exporters and overseas buyers in key markets.
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FUTURE STRATEGIES FOR NEW MARKET:
Establishment of Export Promotion Council for Coffee.
Government Regulation in Quality Testing andProcessing.
Duty Free Import for Processing Equipments.
Extensive Marketing and Promotional Activities.
Sponsoring Trade Fairs and Global Coffee Summits.
Attractive and Durable packaging and
Transportation.
Regular Market Survey for Customer Satisfactionand Preferences.
Future Strategies forNew Market:
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Financial assistance in exporting coffee
introduction
EVERYBUSINESS REQUIRES FINANCE. EXPORT
FINANCE REFERS TO THE FINANCE OF THE
GOODSFROM HOME COUNTRY TO THE IMPORTERS
PORT. THE EXPORT FINANCING BEGINSASSOON
ASAN EXPORT ORDER IS RECEIVED AND
ACCEPTED.. MOST OF THE EXPORT TRADE IS
CARRIED OUT ON CREDIT BASIS. IT TAKS 3 TO 6MONYHSTO RELISE THE EXPOTBILLS.
MEANWHILE, THE EXPOTER HAS TO FURTHER
ORDERS FOR WHICH ADDITIONAL WORKING
CAITAL IS REQUIRED.
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THE NATURE OF EXPORTFINANCE MAY BE SHORT
TERM OR LONG TERM
CREDIT. SHORT TREM CREDIT
FACILITY IS EXTENDED FOR
A PERIOD FROM 30 DAYS TO
180 DAYS WHICH IS
GRANTED BY COMMERCIAL
BANKS. AND LONG TERM
FINANCE IS
PROVIDED FOR APREIOD FROM 5YEARS TO 2O
YEARSWHICH IS PROVIDE BY
EXIM,ECGC AND IDBI BANK.
EXPORT FINANCE IN INDIA
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Pre shipment and post shipment finance
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Support to Small Grower
Sector Scheme:
Financial incentives are given for
taking up the following Capital
Investments in the farms of the
Small Coffee Growers:
Replanting.
Water Augmentation.
QualityUpgradation.
Pollution abatement measures
To establish/set up appropriate
infrastructure in the farms, and
to achieve value additions.
COFFEE SCHEMES
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Interest Subsidy Scheme for Large andSmall Growers:
To provide financial relief to small coffee
grower sector on the interest charged by thefinancial institutions on extending the
working capital/crop hypothecation loans,
Interest Subsidy Scheme has been introduced
on year on year basis subject to the approval
of government @5% for small growers and
3% for large growers.
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Conclusion
Coffee is a major export commodityin developing country like India andliberalisation of coffee market has
given rise to competition and tosurvive in this competitive market
newer and newer strategies are needto be formed to take the advantage ofopportunities arising in this market.
Simultaneously Financing alsoplays an important role in
developing coffee market and coffeeexport
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THANK YOU