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Coffee in the world's largest democracy

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Sep 03, 2009


Since colonial times, India has been known for its tea production and consumption.

Assam tea was an industry initiated by the British in the 1880's to solve their trading problems with China.

Yet India also has a long history of coffee production and in recent years, their spicy, full-bodied product has grown both in quantity and quality.

Today, some of the world's most sought-after robusta (for high-quality espresso blends) is produced in India.

But this tea-drinking society has also begun to drink coffee along with growing it and promotional groups like the Indian Coffee Board hope that trend will continue.

Just as in China, more coffee drinkers reside in urban areas than in rural, so one of the coffee industry's biggest objectives is to promote coffee drinking (filtered coffee, rather than instant) in the Northern regions where coffee is not a traditional beverage.

Coffee consumption has been steadily increasing from 55,000 tons a few years ago to 85,800 tons in 2008. (The Indian government has a lofty goal of increasing domestic coffee consumption to 1.6 million tons by 2016.)

Right now, the organized coffee retail business in India is worth more than US $150 million.

Because of changes in the global economy in the last few decades, the world's largest democracy has a burgeoning middle class market of 200 million people, with an average per capita income (according to CNN money.com) of $680 per month.

European coffee chains and India's own operations are thriving while offering their products at lower prices than we see at home.

Coffee houses in India strive to present the same kind of experience Western consumers expect: several blends, food and snacks, wireless internet and a pleasant ambiance.

Drinking coffee evokes cultural images like brash Western capitalism, political freedom and unlimited creativity.

To the young and ambitious middle class in India, that's probably reason enough to partake.

But tea is more reserved than that: polite, thoughtful, meditative... in Asia, even religious. Perhaps one other hurdle facing coffee promoters in Asia is the idea that tea is healthful while coffee is not.

Is coffee seen as a lifestyle drink, rather like smoking... enjoyable, but not good for you?

Never mind that coffee contains the same antioxidant phenols so prized in tea... it takes time to persuade people to try something new.

Nevertheless, if current trends continue, India will certainly be a profitable place to buy and sell coffee.

Source name: Moncton This Week


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