‘Quality plus quantity must for bigger share of coffee market’

KATHMANDU, Sept 10:  Government authorities, diplomats and coffee farmer said that farmers should focus on ensuring quality of their coffee to get a bigger share in the international market where it has a high potential for growth.

Speaking at an event organized in capital on Wednesday, they also called for encouragement and incentives for the farmers to increase production.


"Despite a higher demand of Nepal-produced coffee in the international market, we have limited production and productivity due to various constraints," Naindra Prasad Upadhyaya, secretary at Ministry of Commerce and Supplies (MoCS), said addressing a ceremony organized to launch Trade and Private Sector Development (TPSD) Project.

According to data made public by MoCS, total production of green beans stood at 300 tons in 2014.

Also speaking at the ceremony, Minister for Commerce and Supplies Sunil Bahadur Thapa said coordination between the Ministry of Agricultural Development (MoAD) and MoCS was a must to boost production of coffee.

"The demand as well as price for coffee is high in the international market which is attracting more farmers toward the coffee production in Nepal. The two ministries in addition to other stakeholders should work in close coordination to boost production of the coffee and make it more export competitive," Thapa said.

Similarly, Nepal Tea and Coffee Development Board Executive Director Sheshkanta Gautam said coffee should be allowed to be cultivated in forests for a massive-level output.

"Coffee production in the arable and farm lands will not be sufficient. We should also devise a policy so that coffee can be produced in community forests at a massive level," Gautam said. He also said that entrepreneurship should be promoted among farmers in hilly areas to encourage them to start commercial farming of coffee.

EU's ambassador to Nepal Rensje Teerink said there was high demand for Nepali coffee in Europe. "Production and investment need to be increased in the national quality infrastructure to enable Nepali producers and exporters to tap that market," she added.

Shyam Prasad Bhandari, the president of Coffee Farmers' Federation of Nepal, said the government should provide subsidy to farmers increasing production. "The focus for farmers is on maintaining international standards. The government should support us in facilitating the export market," he added.

TPSD LAUNCHED

The Ministry of Commerce and Supplies (MoCS), with support from the European Union, launched the Trade and Private Sector Development (TPSD) Project on Monday.

The EU-supported project aims to encourage livelihood opportunities in rural areas by creating on-farm and off-farm employment as alternatives to seeking employment opportunities outside the country.

According to the project officials, the TPSD project also aims to foster inclusive growth through coffee value chain development.

"The Nepal government, the EU and the private sector have joined hands to enhance the trade potential of the Himalayan republic," the EU's Nepal office said in a statement. "In a collective effort and with a focus on high-potential commodities, such as coffee, the partners work on value chain development, quality enhancement and job creation to stimulate inclusive economic growth, rural development and poverty reduction through trade."

According to the statement, the 9-million-Euro project puts special focus on employment-generating economic growth. "This growth is necessary to enhance the livelihood of the rural population and to achieve comprehensive and visible improvement in terms of agricultural productivity and economic development, thus lifting a large segment of the population effectively out of poverty," The EU office said in its statement.

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