Coffee exporters have sought the Centre’s help to tide over the liquidity crunch they are facing due to the disruption in exports. Italy and Germany – principal buyers of Indian coffee are under lockdown after becoming hotspots for Covid-19.
“The rules implemented by the Italian government such as closing coffee bars by 6 pm, maintenance of minimum distance of 1metre, no gatherings etc are expected to lead to a drop in consumption of 10-12% in the next quarter. This would lead to lower orders from India,” said Ramesh Rajah, president, Coffee Exporters Association. He said in the West Asia/North Africa markets, consumers are asking exporters to delay shipments.
Payments are also delayed due to slower operations in foreign banks working with skeletal staff. “A shortage of containers is expected. There are already operational issues at Kochi port,” Rajah said.
The industry has sought a 20% ad hoc increase in working capital limit to exporters till June 30 from the commerce ministry. In a letter, the Coffee Exporters Association also demanded raising the export incentive from 3% to 5% for six months from January, 2020.
Source:- Economic Times
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