Praveen Jaipuriar, CEO of Continental Coffee Limited, has called on the government to take strategic steps to increase coffee demand in India. Jaipuriar emphasizes the need for the government to address key factors such as product availability, costs, and purchase barriers that impact coffee consumers directly.
Jaipuriar advocates for a significant reduction in the Goods and Services Tax (GST) on coffee products. He suggests lowering the current 18% GST rate on coffee beverages to 5% across the board, which could make coffee more affordable and accessible to a broader consumer base.
The CEO highlighted the role of advanced agricultural technologies, such as genetic engineering and selective breeding, in developing coffee varieties that are more resilient to diseases, pests, and climate change. These innovations are crucial for maintaining and potentially increasing coffee production in the face of changing environmental conditions.
Jaipuriar also pointed out that to further boost domestic coffee consumption, the government should consider recognizing coffee as a staple product, which would reduce taxes and qualify coffee farming for government support schemes. He also suggested lowering import barriers to provide Indian consumers with greater access to global coffee products at competitive prices.
To enhance India’s presence in the global coffee market, Jaipuriar recommends that the government promote Indian coffee internationally, provide training to farmers to improve yield, and negotiate favourable trade agreements to reduce tariffs and barriers on coffee exports.
Despite growing interest in coffee, India lags behind countries like the US and the UK in terms of consumption. Jaipuriar attributes this disparity to India’s strong tea-drinking culture, price sensitivity, and the perception of coffee as an occasional luxury. He believes that targeted marketing campaigns, education on coffee’s benefits, and the introduction of more affordable options could help bridge this gap.
Continental Coffee is already taking steps to expand its presence in regions where coffee demand has been slower to grow, focusing on premiumization, introducing new variants, and enhancing both at-home and out-of-home consumption opportunities. The company is also exploring international markets and expanding its coffee retail segment through in-house cafés and coffee machines.