India to sign International Coffee Agreement 2007

NEW DELHI: The government today gave its approval for signing and ratification of the International Coffee Agreement, 2007 which aims to strengthen global co-operation in coffee trade.

International Coffee Agreement (IPA) is a United Nations pact establishing the International Coffee Organization. It is designed to help stabilise coffee prices globally.

"India has significant interest in export of coffee, it would be immensely benefited from the membership of the International Coffee Agreement (ICA)," Minister of State in Prime Minister's Office Prithvi Raj Chavan said after a meeting of the Cabinet Committee on Economic Affairs.

IPA 2007 will replace the 2001 agreement, which expires on September 30, 2008.

A total of 50 countries are invited to sign the agreement as they recognise the exceptional importance of coffee to their economies.

India produces only 4 percent of the world's coffee but exports 70-80 percent of its output. During the first five months of 2008, coffee exports increased by 3.6 percent. It exported mainly to Italy, Germany and Russia.