Coffee Promotion Board Act, 1922

The Ministry of Commerce and Industry is planning to replace the 80-year-old Coffee Act with the new Coffee (Promotion and Development Bill), 2022, which has been listed for the Monsoon Session of Parliament.

Background –

• The Coffee Act, 1942 was first introduced during World War II, in order to protect the struggling Indian coffee industry from the economic downturn caused by the war.
• The government is now trying to scrap the law because the substantive portion of the Coffee Act, 1942, which deals with pooling and marketing of the commodity, have become redundant/inoperative.
• Government is also contemplating to shift the Coffee Board from the Ministry of Commerce to the Ministry of Agriculture, to ensure that the benefits of all agricultural schemes are extended to coffee growers.

What is the proposal?

• The new legislation is now primarily concerned with promoting the sale and consumption of Indian coffee, including through e-commerce platforms, with fewer government restrictions.
• It also aims at encouraging further economic, scientific and technical research in order to align the Indian coffee industry with “global best practices.”
• While the Coffee Board continues to have limited control over marketing, exporters will still require a certificate from the statutory body.

About the ‘Coffee Board of India’ –

• It is a statutory organisation that was constituted under Section (4) of the Coffee Act, 1942.
• It functions under the administrative control of the Ministry of Commerce and Industry, Government of India.
• The Board comprises 33 Members including the Chairperson, who is the Chief Executive and it functions from Bangalore.
• The Board mainly focuses its activities in the areas of research, extension, development, market intelligence, external & internal promotion for coffee.