Legislators are considering replacing the Coffee Act, 1942, as it “no longer serves the purpose,” according to Commerce and Industry Minister Nirmala Sitharaman.
“Over the years, the role of the Coffee Board has changed and many provisions of the existing act have become redundant, especially after abolition of the coffee pooling system in 1996,” she said, urging the Lok Sabha to enact a new Coffee Bill, 2016.
The proposed legislation notes that “the activities of the Coffee Board are now increasingly focused on production, development, research, quality upgradation and market intelligence. It has therefore, become necessary that the existing arrangements for production, pooling and marketing of Coffee are abolished and a liberal regime for functioning of coffee growers, industry and trade is put in place. Of special concern are regulations for smallholders.
The intent is to strengthen the Coffee Board in assisting development and growth while regulating the sector, according to Sitharaman.
The legislation was proposed in March. During the review period that followed numerous suggestions regarding the control of the coffee industry, definition of coffee and coffee estate, cognisance of offence under the Act were brought forth.
“All are being examined,” she said.