Public CompanyRight packaging key to boosting coffee exports
Getting the right packaging material at an affordable price is a major challenge facing coffee exporters in India today. India, like other coffee exporting countries, uses the conventional jute bags for exporting green coffee. However, when it comes to exporting roast and ground coffee, the material used for packaging plays a major role. As of now, India’s roast and ground coffee exports in the retail form are very small in volume at 200 tonnes, whereas the country’s total green coffee exports are about 180,000 tonnes.
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“If we have to increase the amount of roast and ground, and instant coffee exports, we need to focus on improving their packaging,” said Ramesh Rajah, president of Coffee Exporters Association. “Bulk of instant coffee exports goes to markets like West Asia which has a large ethnic Indian population. Given that there are a large number of NRIs there is enormous potential for instant coffee exports,” said Rajah. India, which accounts for 4 per cent of the global coffee production and which exports about 70 per cent of its produce, is looking at ways to improve its export performance notably of value-added products like instant coffee.
According to experts, while tin is the ideal packaging material, it is prohibitively costly. Venkat Prahalad, CEO of Bangalore-based SNP Associates and packaging consultant, says flexible packaging with a layer of aluminium can be used to pack instant coffee meant for exports. The cost differential between tin and flexible packaging could be as much as 25 per cent with the former being more expensive. Besides the cost factor, the availability of tin in India is an issue. Brazil, on the other hand, produces tin and there is no pressure on supplies.