Coffee entrepreneurs want a policy on contract farming

 National Coffee Expo opens

 

Kathmandu, June 17

Stakeholders and experts have stressed on increasing the production of coffee in Nepal.

Speaking at the inaugural programme of the four-day National Coffee Summit and Expo 2023 that kicked off in the Capital on Saturday, they said that the area of coffee plantation should be expanded and policy should be enacted to allow contract farming.

According to Nepal Coffee Producers' Association (NCPA), against the potential of 11,000 tonnes only 319 tons of coffee is being produced in Nepal. The government had unveiled the first ever National Coffee Policy in 2006 but due to poor implementation, there was no progress in this sector.

"There is a need of identifying the problems in coffee production and implement the reform initiatives at the earliest. At the same time, we need better product and market promotion," said Om Nath Adhikari, President of NCPA.

According to him, due to the limits to own a large piece of land, corporate investment couldn't be attracted to coffee production and only small-holders have been active in the sector. In order to increase corporate investment, the government should create favourable environment with better policies.

"Limit on land size should be removed, forest land should be opened to grow coffee, insurance of coffee should be available, and producers should be facilitated with concessional loans," said Adhikari.

Secretary of the Ministry of Agriculture and Livestock Development (MoALD), Dr. Govinda Prasad Sharma, said that utilisation of fallow land and contract farming could be key to attract more investment in this sector and expand plantation and production.

While about 43 districts in the country have been found good for coffee plantation, it has been grown in only 20 districts in the hills of central and western Nepal.

Likewise, he maintained that the country needed skilled technical manpower, coffee research institution and support to grow organic products.

There is no dearth of demand, the country only needs to increase the production of high-quality coffee, according to Govinda Bahadur Karki, Joint Secretary of the Ministry of Industry, Commerce and Supplies (MoICS).

He also said that one-window system of policy implementation and facilitation was needed to provide growth impetus to this sector.

Similarly, Executive Director of the Trade and Export Promotion Centre, Sharad Bikram Rana, suggested giving priority to high value products, not to high volume ones.

"I think this is the time to focus on the domestic demands first since the demand of coffee is growing rapidly in Nepal," he said.

Addressing the programme, Hemraj Dhakal, Vice-President of the Federation of Nepalese Chambers of Commerce and Industry, said that the forest land should be leased out to the coffee producers in order to increase the production.

Stating that the budget and monetary policy should address the demands of coffee producers, Dhakal said that there should be a close cooperation between the MoALD and MoICS to facilitate the sector.

The event will run till June 20 and will serve as a platform for coffee producers, exporters, traders, industry experts, policymakers, and coffee enthusiasts to engage in insightful discussions, networking, and knowledge exchange.

This event aims to foster collaboration, innovation, and sustainable practices within the coffee value chain while highlighting the unique characteristics and potential of Nepali coffee on the global stage, said the organizer.

The national event is supported by the MoICS, MoALD, National Tea and Coffee Development Board (NTCDB), Nepal Tourism Board (NTB), and European Union Trade and Investment Programme, International Trade Centre.

The expo will feature products, services, and innovations of coffee producers, equipment manufacturers, exporters, and other industry-related businesses.

Additionally, the summit is also hosting coffee competitions (Barista Championship, Brewing Championship and Latte Art Championship) to recognise and reward excellence in different categories.

Published in The Rising Nepal daily on 18 June 2023.