Coffee Act 1942

Subject – Government Schemes

Context – Coffee Act will be simplified, says Piyush Goyal

Concept –

Indian coffee industry holds respect amongst coffee estates in the world. After the First World War, the Indian coffee economy was in a deplorable state and thus the Government of India established a Coffee Board and enacted the Coffee Act of 1942.
This Coffee Board was constituted by the name Indian Coffee Market Expansion Board as per Section 4 of the Indian Coffee Market Expansion Board Ordinance, 1940. The Indian Coffee Board comes under the purview of Ministry of Commerce and Industry.

Coffee Board of India

The Coffee Board of India was enacted by the State through Section 4 of this Act as a means to uplift and improve the coffee industry. After trade barriers were removed and coffee trade was privatized in 1996.
The board serves as a quality regulation body. It is the first-friend and guide of coffee growers and sellers.
They have taken activities such as R&D, supporting Indian growers and control of coffee exports and re-imports.

How is Coffee regulated by this Act?

Any person owning land with coffee plants planted on it, whether wholly or partly in India or divided amongst different estates has to apply for registration at the registration officer appointed by the State Government.
They have to do so within one month of the date when they became owner.
Once registered, it can only become invalid if the registering officer cancels it.
As per Section 16 (1) of the Act, the Central Government can though notification in the Official Gazette, set prices for sale of coffee in the Indian market, in wholesale or retail. Section 16(2) stipulates that the same would be a price ceiling.
As per Section 20 of the Act, Coffee cannot be exported from India by anyone except the Board or with the authorization of the Board.