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Nepal plans to tap global coffee market

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KATHMANDU, Feb 7: In views of growing domestic demand and prospects of overseas exports, the government has prepared a three-year strategic plan to boost the production and export of Nepali coffee. [break]



The plan drafted by the National Tea and Coffee Development Board (NTCDB) is currently being discussed with stakeholders, said Binaya Mishra, executive director of the board.



Talking to myrepublica.com, Mishra said the strategic plan aims at increasing production, enhancing and assuring quality and developing markets for Nepali coffee through strong and coordinated action by the agencies concerned.



“As farmers are key players in the production system, our plan emphasizes building the capacity of small farmers and encouraging them to take up coffee production through co-operatives,” Mishra told myrepublica.com.



Given the growing demand for Nepali coffee in the global market, the plan envisages tapping this potential and working to expand markets through a strengthening of linkage between producers and markets.



Since certification that Nepali coffee is organic and a fair trade product is very essential in the business, the government plan includes a strategy to set up an internationally accredited certification laboratory within the country.



“We are also at the final stage of approving a logo for Nepali coffee,” stated Mishra. The logo will be a trademark confirming that the coffee is produced and certified in Nepal. Coffee produced in any part of the country will be marketed under this logo.



Keeping in mind a lack of skills among Nepali farmers, the plan has given high priority to skill enhancement training. It has also given strong emphasis to the development of technical human resources along with research to increase yields.



“An environment will be created for increasing investment in coffee farming and encouraging more production to cater to the growing demand for Nepali organic coffee in the international market,” he said.



Nepali farmers produce the Arabica variety of filter coffee. This is the most popular variety and enjoys a 70 percent share in the global coffee market.



At present, coffee is commercially produced in Nepal in more than a dozen districts including Gulmi, Palpa, Syangja, Arghakhachi and Lalitpur. In 2007/08, Nepal exported coffee worth Rs 950 millions to the overseas market. The export was Rs 360 million a year earlier.



According to NTCDB, around 40 percent of coffee produced in Nepal is consumed locally. Average annual production of coffee presently stands at 265 tons.



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