EU’s EUDR Compliance Extension Brings Relief to Indian Coffee and Rubber Planters

Sub :Geo

Sec : Eco Geo

Why in News

The European Union has decided to extend the compliance deadline for the EU Deforestation Regulation (EUDR), offering Indian coffee and rubber planters additional time to adapt to the new requirements. This decision is significant for India’s plantation sector, especially for coffee and rubber, which are crucial export commodities to the EU.

EUDR Compliance:

The EU Deforestation Regulation (EUDR) aims to prevent the import of agricultural goods associated with deforestation, mandating compliance from growers, exporters, and traders.
The regulation was initially set to be enforced by December 2024. However, the deadline has now been extended:
Large operators and exporters must comply by December 30, 2025.
Micro and small-scale growers have until June 30, 2026 to meet the standards.

Relevance to Indian Coffee Industry:

Over 70% of Indian coffee exports go to EU countries, making EUDR compliance crucial for Indian growers.
Indian coffee is unique as it is often cultivated under a two-tier canopy of native shade trees, which supports biodiversity. Despite this sustainable practice, the new EU regulations still require Indian planters to adhere strictly to EUDR standards.

Indian Coffee Production:

Indian coffeeis said to be the finest coffee grown in the shade rather than in direct sunlight anywhere in the world.
The two well-known species of coffee grown are the Arabicaand
Regions:Predominantly in Karnataka’s Kodagu (Coorg) region (70% of India’s coffee), also in Kerala and Tamil Nadu.
Other coffee-producing regions: Non-traditional areasof Andhra Pradesh and Odisha on the eastern coast of the country and a third region comprising the states of Assam, Manipur, Meghalaya, Mizoram, Tripura, Nagaland and Arunachal Pradesh of Northeastern India.
Almost 80%of Indian coffee is exported; 70% is bound for Germany, Russia, Spain, Belgium, Slovenia, the United States, the United Kingdom, Japan, Greece, Netherlands and Italy accounts for 29% of the exports.
Coffee production globally: Globally top producers: Brazil (29%), Vietnam (18%) andIndonesia (7%), Colombia, Ethiopia, Uganda, Peru and India.

Rubber Sector’s Response to EUDR Extension:

The extension of the EUDR deadline is expected to stabilize the international rubber market in the short term, the postponement has temporarily eased market concerns.
The rubber sector now has until 2026 to prepare for compliance, providing time to implement necessary changes.
The Rubber Board of India has partnered with Hyderabad-based tech firm TRST01 to facilitate compliance. They plan to issue due diligence certificates to exporters, starting with select regions in Kerala.

Indian Rubber production:

Hevea brasiliensis, native to the Amazon basin, is the primary source of natural rubber, now grown extensively in Asia and Africa.
Hevea brasiliensis is a fast-growing, perennial tree, reaching 25-30 meters in height, with an economic life span of 32 years.
Commercial rubber cultivation in India began in 1902.
India’s rubber growing regions are classified into traditional (Kerala and Tamil Nadu) and non-traditional (coastal Karnataka, Goa, Maharashtra, Andhra Pradesh, Odisha, northeastern states, and Andaman and Nicobar Islands) zones.
Rubber requires a tropical climate with temperatures between 20°C-35°C and heavy rainfall of at least 200 cm annually for optimal growth.
Thailand is the world’s largest producer of rubber, contributing 29% of global production, followed by Indonesia.
India ranks 4th in global natural rubber production, with 81% of its output from Kerala and Tamil Nadu.