Recently introduced “Coffee Policy Implementation Guideline” has authorized National Tea and Coffee Development Board (NTCDB) to recommend for permission to exporters to export green bean coffee worth up to US$ 30,000 without Letter of Credit. [break]
Implementation of Coffee Policy hasn´t taken momentum in the absence of implementing guidelines for the last seven years. The Ministry of Agriculture and Cooperatives had approved the guideline last week.
The guideline envisages registration of all stakeholders including coffee exporters, importers, cooperatives and other institutions at NTCDB and authority to NTCDB to recommend for subsidized loan for coffee farming and equipments and training opportunities to registered farmer groups and cooperatives through the NTCDB.
“With introduction of the guideline, avenues have opened for promotion and development of coffee in the country as the guidelines incorporated different incentives to farmers, producers and exporters,” Binay Mishra, executive director of NTCDB told myrepublica.com. Mishra said coffee production areas and volume of coffee exports would also go up in the days to come.
Announcement of coffee pocket area with facilities including electricity, communication and agriculture roads as well as arrangement of seeds, seedlings, equipments and human resources for coffee processing, recommendation by NTCDB to concerned agency for insurance for coffee farming and a Code of Conduct for production, processing and marketing of coffee, have also been incorporated in the guideline.
Similarly, provision of mandatory approval from NTCDB before importing and exporting of coffee, implementation of national logo of coffee, establishment of independent lab for quality control of Nepali coffee and establishment of Coffee Development Fund are also included in the guideline.
The government would encourage determination of coffee price through open competition while continuing existing system through which the government fixes minimum support price.
As per the guideline, NTCDB would recommend minimum customs duty in the import of equipment, machinery and other materials and waiver of income tax for five years for coffee processing industries and three years of grace period would be provided to the farmers for payment of interest on loan.
Related story
‘Coffee 2 Go Nepal’ brings mobile coffee stall in Kathmandu
